Income Tax Calculator
Estimate the refund or amount owed on your U.S. federal tax return — for employees and the self-employed alike. The calculator runs both the 2025 rules (return filed in 2026) and the 2026 rules (filed in 2027), including the One Big Beautiful Bill Act brackets and the new deductions for tips, overtime, car-loan interest and seniors.
Your return
Estimate only, based on IRS Rev. Proc. 2024-40 (2025) and Rev. Proc. 2025-32 (2026) and the One Big Beautiful Bill Act. Tax is computed with the rate schedules directly; it does not run the AMT, the net investment income tax, or state-specific rules. Not tax advice.
How this estimate is built
A federal return is a pipeline. Start with total income: wages, business profit, interest, dividends, capital gains, rentals, and the taxable share of Social Security benefits (0%, 50% or up to 85% of benefits, depending on your provisional income). Subtract above-the-line adjustments — traditional IRA contributions, student-loan interest (up to $2,500, phased out between $85,000 and $100,000 of modified AGI, $170,000–$200,000 joint in 2025 and $175,000–$205,000 in 2026) and half of any self-employment tax — to reach adjusted gross income (AGI). From AGI, subtract the larger of the standard or itemized deduction, then the new 2025–2028 deductions described below. What remains is taxable income, taxed through the brackets. Credits then cut the tax itself, and your withholding and estimated payments settle the difference: overpay and you get a refund; underpay and you owe.
Worked example, the calculator's defaults: single filer, 2025, $80,000 of wages. The standard deduction of $15,750 leaves taxable income of $64,250. Tax = 10% × $11,925 + 12% × $36,550 + 22% × $15,775 = $9,049. With $9,000 withheld, the return shows $49 owed — a reminder that a small balance due is not a mistake; it usually means withholding tracked the liability closely.
Federal brackets — 2025 (filed in 2026)
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $17,000 | $0 – $11,925 |
| 12% | $11,925 – $48,475 | $23,850 – $96,950 | $17,000 – $64,850 | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 | $64,850 – $103,350 | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 | $206,700 – $394,600 | $103,350 – $197,300 | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 | $197,300 – $250,500 | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,500 – $626,350 | $250,525 – $375,800 |
| 37% | over $626,350 | over $751,600 | over $626,350 | over $375,800 |
Federal brackets — 2026 (filed in 2027)
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 | $0 – $12,400 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,750 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,750 – $256,200 | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 | $256,225 – $384,350 |
| 37% | over $640,600 | over $768,700 | over $640,600 | over $384,350 |
Brackets apply to taxable income, and only the slice of income inside a bracket is taxed at that bracket's rate — your marginal rate. The effective rate — total tax divided by total income — is always lower. Long-term capital gains and qualified dividends get their own schedule stacked on top of ordinary income: 0% up to taxable income of $48,350 single / $96,700 joint in 2025 ($49,450 / $98,900 in 2026), then 15%, then 20% above $533,400 / $600,050 (2025) or $545,500 / $613,700 (2026).
Standard deduction, and the four new deductions
The One Big Beautiful Bill Act raised the standard deduction above the originally published 2025 figures and made the rate structure permanent: 2025 — $15,750 single, $31,500 joint, $23,625 head of household; 2026 — $16,100, $32,200 and $24,150. Add $2,000 per person 65 or older in 2025 ($1,600 per spouse on joint returns), $2,050 / $1,650 in 2026. Itemizing only wins if your itemized total — state and local taxes (the SALT deduction, capped at $40,000 in 2025 and $40,400 in 2026, phasing down toward $10,000 above $500,000 / $505,000 of MAGI), mortgage interest and charitable gifts — beats it; the calculator takes the larger automatically.
On top of either deduction, 2025–2028 brings four new ones, each with its own cap and phase-out:
- Tips — up to $25,000 of qualified tips; reduced $100 per $1,000 of MAGI over $150,000 ($300,000 joint).
- Overtime — up to $12,500 of qualified overtime pay ($25,000 joint); same $100-per-$1,000 phase-out over $150,000 / $300,000.
- Car-loan interest — up to $10,000 of interest on a loan for a qualified new vehicle; reduced $200 per $1,000 over $100,000 ($200,000 joint).
- Seniors — $6,000 per taxpayer aged 65+ ($12,000 if both spouses qualify); reduced by 6% of MAGI over $75,000 ($150,000 joint).
Credits: where the real money is
A credit cuts tax dollar for dollar, which makes it worth more than a deduction of the same size. The Child Tax Credit pays up to $2,200 per child under 17 (up to $1,700 of it refundable per child through the Additional Child Tax Credit, once earned income passes $2,500), plus $500 per other dependent; both phase out from $200,000 of MAGI ($400,000 joint) at $50 per $1,000. The Earned Income Tax Credit is fully refundable and peaks at $649 with no children, $4,328 with one, $7,152 with two and $8,046 with three or more in 2025 (2026: $664 / $4,427 / $7,316 / $8,231) — but investment income over $11,950 (2025) or $12,200 (2026) disqualifies you. The American Opportunity Credit returns up to $2,500 per student on the first $4,000 of tuition and fees, 40% of it refundable; the child and dependent care credit covers 20–35% of up to $3,000 of care expenses for one dependent ($6,000 for two or more). Nonrefundable credits can take your income tax to zero but not below; refundable ones — EITC, the refundable slice of the child and education credits — can push the return into refund territory on their own.
Self-employment and payroll taxes
Business profit is taxed twice over: as ordinary income, and through the self-employment tax — 15.3% on 92.35% of net earnings, with the 12.4% Social Security part stopping at the wage base ($176,100 in 2025, $184,500 in 2026, reduced by any W-2 wages), plus a 0.9% additional Medicare tax at higher incomes. Half of the SE tax (excluding the 0.9% surtax) comes back as an above-the-line deduction. Employees instead pay FICA through withholding — 6.2% Social Security to the same wage base and 1.45% Medicare, plus the 0.9% surtax on wages over $200,000 — which this calculator shows separately so you can see your full tax burden and estimated take-home pay, alongside a rough state estimate at the flat rate you enter.
Frequently asked questions
How is a tax refund calculated?
Payments (withholding + estimated payments) plus refundable credits, minus your final liability. Positive difference: refund. Negative: amount owed. $9,000 withheld against a $9,049 liability = $49 owed.
What is the standard deduction for 2025 and 2026?
2025: $15,750 single / $31,500 joint / $23,625 head of household. 2026: $16,100 / $32,200 / $24,150. Plus $2,000 (2025) or $2,050 (2026) per person 65+, and the separate $6,000 senior deduction with its phase-out.
What are the new deductions for tips, overtime, car loans and seniors?
Four deductions for 2025–2028, taken on top of the standard or itemized deduction: tips up to $25,000, overtime up to $12,500 ($25,000 joint), car-loan interest up to $10,000, and $6,000 per senior — each phasing out above its MAGI threshold.
How much is the Child Tax Credit?
Up to $2,200 per child under 17 (up to $1,700 refundable per child), $500 per other dependent, phasing out from $200,000 / $400,000 of MAGI.