Federal income tax calculator
Federal tax on wages and long-term gains for tax year 2026, with the standard deduction, bracket-by-bracket.
Covers tax year 2026 · rates as at 2026-01-01
After federal tax
Estimate$93,070
13.8% effective against a 22% marginal rate
- Federal tax
- $14,930
- Taxable income
- $91,900
- Marginal bracket
- 22%
| Wages | $120,000 |
|---|---|
| Pre-tax deferrals | -$12,000 |
| Standard deduction | -$16,100 |
| Ordinary income tax | -$14,930 |
| After federal tax | $93,070 |
- Federal only. State income tax, FICA and any local tax are charged separately.
On $120,000 of wages with $12,000 deferred, the standard deduction of $16,100 leaves $91,900 taxable at a 22% marginal rate.
How this is calculated
How this is calculated
Deduction first, then the brackets
Adjusted gross income less the larger of the standard or itemised deduction gives taxable income. At $120,000 of wages with $12,000 deferred, the $16,100 standard deduction leaves $91,900.
taxable = AGI − max(standard, itemised)Long-term gains stack on top
Preferential rates apply to the top slice, so ordinary income consumes the 0% band first. Someone with $40,000 of wages and a $40,000 gain does not get the whole gain tax-free — that is the most common error in US calculators.
0% up to $49,450, then 15%, then 20% above $545,500The 3.8% surtax is never indexed
Net investment income tax applies to the lesser of investment income and MAGI over $200,000 single or $250,000 joint. Those thresholds have been fixed since 2013, so more people cross them every year.
Worked example: $120,000 of wages, single, $12,000 deferred
| Wages | $120,000 |
|---|---|
| Filing status | Single |
| 401(k) | $12,000 |
| Deduction | $16,100 standard |
| Taxable income | $91,900 |
|---|---|
| Marginal bracket | 22% |
| Effective rate | about 12% |
The 22% bracket applies only above $50,400. Everything below is taxed at 10% and 12%, which is why the effective rate is roughly half the headline bracket.
What this assumes
- Federal tax only, no state or local.
- No dependants or tax credits claimed.
- Full-year US tax resident.
- Social Security and Medicare tax excluded.
Where this commonly goes wrong
- A 401(k) deferral cuts income tax but not the 7.65% FICA, while an HSA contribution made through payroll avoids both.
- The 0% capital gains band is measured on taxable income including the gain, so a large gain pushes itself out of its own zero rate.
- Bonuses are usually withheld at a flat 22% supplemental rate, which under-withholds badly for anyone in the 32% bracket or above.
Questions
How much federal tax do I pay on $120,000?
As a single filer deferring $12,000 into a 401(k), taxable income is $91,900 after the $16,100 standard deduction, landing in the 22% bracket with an effective rate around 12%. State tax and FICA are on top.
Should I take the standard deduction or itemise?
Whichever is larger. At $16,100 single and $32,200 joint for 2026, most filers take the standard deduction — itemising generally only wins with a large mortgage, significant charitable giving or high state taxes.
How are long-term capital gains taxed?
At 0%, 15% or 20% depending on where the gain sits on top of your ordinary income. The 0% band runs to $49,450 of taxable income for a single filer, and ordinary income fills that band first.
What is the net investment income tax?
An extra 3.8% on the lesser of your investment income and the amount your MAGI exceeds $200,000 single or $250,000 joint. Those thresholds are statutory and have not moved since 2013.
Does a 401(k) contribution reduce all my taxes?
Only income tax. Social Security and Medicare are still charged on the full wage, so a $12,000 deferral saves federal income tax at your marginal rate but nothing on the 7.65% FICA.
Why is my bonus taxed so heavily?
It is withheld at a flat 22% supplemental rate, not your marginal rate. If you are in the 32% bracket the withholding is too low and you will owe at filing; below 22% you have over-withheld and get it back.
Related tools
Sources
Estimate only, based on published IRS figures for tax year 2026. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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