Tax Rates

Use this tool when you want to estimate your 2026 federal income tax bill, understand your marginal vs. effective tax rate, or see how a raise, bonus, or Roth conversion would affect your taxes. Enter your income and filing status to get instant bracket-by-bracket calculations.

1. Select your filing status: Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), or Head of Household (HoH).
2. Enter your gross income (total income before deductions).
3. Choose Standard or Itemized deduction. Most taxpayers use the standard deduction.
4. Review the bracket-by-bracket breakdown showing exactly how much tax you owe in each bracket.
5. Check the chart to see your marginal rate (the rate on your next dollar) and effective rate (your actual average tax burden).

Scenario: Married Filing Jointly with $180,000 gross income, standard deduction.

1. Select MFJ. Enter $180,000 income. Use standard deduction ($30,000).
2. Taxable income = $180,000 − $30,000 = $150,000.
3. The bracket breakdown shows: first $23,850 taxed at 10% ($2,385), next $73,100 taxed at 15% ($10,965), next $53,050 taxed at 25% ($13,263).
4. Total tax: approximately $26,613.
5. Marginal rate: 25% (the bracket your last dollar falls in). Effective rate: ~14.8% ($26,613 / $180,000).

Notice the effective rate is significantly lower than the marginal rate. That's the progressive system at work.

The U.S. uses a progressive tax system where income is taxed in bands (brackets). Only the income within each bracket is taxed at that bracket's rate (not your entire income). This means your effective tax rate is always lower than your marginal rate.

• Marginal Rate: the tax rate on your last dollar of income. This is the rate that applies to additional income or deductions at the margin. See the Glossary.
• Effective Rate: your total tax divided by your total income. This represents your true average tax burden.

The One Big Beautiful Bill Act (OBBBA), signed in 2025, extended most Tax Cuts and Jobs Act (TCJA) individual rate cuts that were set to expire. Key changes for 2026:

• Rate brackets preserved: the TCJA rates (10%, 12%→15%, 22%→25%, 24%, 32%, 35%, 37%) are extended rather than reverting to the pre-TCJA schedule.
• Standard deduction: inflation-adjusted to $15,000 (Single) / $30,000 (MFJ) for 2026.
• SALT cap raised: state and local tax deduction cap increased to $40,000 (MFJ) from the previous $10,000.
• AMT exemptions updated: higher exemption amounts and phase-out thresholds under the OBBBA.

Deductions reduce your taxable income before tax rates are applied:

• Standard Deduction: a fixed amount based on filing status ($15,000 for Single, $30,000 for Married Filing Jointly in 2026). Most taxpayers use this.
• Itemized Deductions: if your eligible deductions (mortgage interest, charitable contributions, SALT, etc.) exceed the standard deduction, you can itemize instead.

Your filing status determines your bracket thresholds and standard deduction amount. The tool supports all four federal filing statuses: Single, Married Filing Jointly, Married Filing Separately, and Head of Household.