Federal Income Tax Calculator 2026

How federal income tax is calculated for 2026, step by step

Federal income tax is charged on taxable income, not on your salary. You get from one to the other by subtracting pre-tax contributions and deductions, then you run what is left through the 2026 brackets and subtract credits. The calculator above follows the same order the Form 1040 does.

• Start with gross income: wages from Form W-2 box 1, plus tips, interest, business profit and any other taxable income.
• Subtract "above-the-line" adjustments to reach adjusted gross income (AGI): traditional 401(k) deferrals (up to $24,500 in 2026), pre-tax health premiums, HSA contributions and half of any self-employment tax.
• Subtract the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) or your itemized deductions if they are larger.
• Subtract the One Big Beautiful Bill Act deductions you qualify for: up to $25,000 of qualified tips, up to $12,500 of overtime premium pay, $6,000 per person aged 65 or older, and up to $10,000 of interest on a loan for a new US-assembled car.
• Apply the brackets to what remains. Each rate applies only to the slice of income inside its band.
• Subtract credits such as the $2,200 child tax credit. A credit cuts tax dollar for dollar, so it is worth more than a deduction of the same size.
• Compare the result with the federal tax withheld from your pay (W-2 box 2) and any estimated payments. More withheld than owed is a refund; less is a balance due.

Worked example: a single earner and a family of four

A single filer earning $75,000 with no pre-tax deductions has $58,900 of taxable income after the $16,100 standard deduction. The bracket walk looks like this: 10% on $12,400 of taxable income ($0 to $12,400) = $1,240; 12% on $38,000 of taxable income ($12,400 to $50,400) = $4,560; 22% on $8,500 of taxable income ($50,400 to $58,900) = $1,870. Total federal income tax is $7,670, an effective rate of 10.2% of gross pay even though the top dollar is taxed at 22%.

A married couple filing jointly on $150,000 with two children under 17 subtracts $32,200, leaving $117,800 taxable. Tax before credits is $15,340; two child tax credits take off $4,400, so they owe $10,940, or 7.3% of income.

Standard deduction or itemize?

Itemize only when your deductible expenses add up to more than the standard deduction. For most households they don't: a single filer would need more than $16,100 of mortgage interest, state and local taxes, charitable gifts and large medical bills combined.

The 2026 state and local tax (SALT) deduction cap is $40,400, reduced for modified AGI above $505,000 but never below $10,000. People in high-tax states who own a home are the group most likely to benefit from itemizing under the higher cap. The calculator assumes the standard deduction, so if you itemize, your real tax will be lower than the estimate by roughly your extra deductions multiplied by your marginal rate.

Who qualifies for the new tips, overtime, senior and car-loan deductions

These four deductions run for tax years 2025 through 2028 and are claimed whether you take the standard deduction or itemize. Each has its own income phase-out, and the tips and overtime deductions require a valid Social Security number on the return and, for married people, a joint return.

Why your withholding rarely matches this estimate

Your employer does not calculate your annual tax. It withholds from each paycheck using the Form W-4 you filed and the tables in IRS Publication 15-T, treating each check as if you earned that amount all year. Two jobs, a working spouse, a bonus or a mid-year raise all push withholding away from the true liability.

The IRS recommends checking withholding every January and after marriage, divorce, a birth or adoption, or a home purchase. Its Tax Withholding Estimator produces a completed W-4 you can hand to your employer. If you have two jobs and together they withheld Social Security on more than the wage base, the excess comes back as a credit on your return; if a single employer over-withholds, that employer has to correct it.

Deadlines for the 2026 tax year

Returns for 2026 income are due April 15, 2027. Form 4868 gives an automatic extension to October 15, but only for filing: any tax owed is still due in April, and interest and penalties run on unpaid balances after that date.

If you have income without withholding, 2026 estimated tax is paid in four installments: April 15, June 15 and September 15, 2026, and January 15, 2027. You can skip the January installment if you file your 2026 return by February 1, 2027 and pay the whole balance with it.