Enter your annual income and filing status to estimate your federal income tax, FICA, effective rate, marginal rate, and take-home pay for tax year 2026.
Take-home pay (annual)
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Federal income tax
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FICA (SS + Medicare)
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Effective rate
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Marginal rate
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Bracket-by-bracket breakdown
| Bracket | Taxed in this bracket | Tax |
|---|---|---|
| Fill the form to see results. | ||
How federal income tax is calculated in 2026
The US federal income tax is a progressive tax. Different slices of your taxable income are taxed at different rates. The IRS publishes new bracket thresholds every year, indexed to inflation under Rev. Proc. 2025-32 (for tax year 2026).
The calculation has four steps: (1) start with gross income, (2) subtract pre-tax adjustments (traditional 401(k), HSA, certain other contributions) to get AGI, (3) subtract the standard deduction or itemized deductions (whichever is larger) to get taxable income, (4) apply the bracket schedule to taxable income.
Separately, FICA (Social Security + Medicare) is calculated on gross wages. Social Security applies the 6.2% rate up to a wage base ($176,100 for 2026 per SSA). Medicare is 1.45% with no cap, plus an additional 0.9% on wages above $200,000 (single) or $250,000 (MFJ).
What this calculator does NOT include
- State or local income tax, see our state-specific paycheck calculators.
- Self-employment tax (for 1099 income), see our self-employment tax calculator.
- Capital gains, dividend income, AMT, and other items that may apply to your full return.
- Tax credits (EITC, CTC, education credits, etc.). This calculator estimates pre-credit tax.
Worked example
Take a married couple filing jointly with $120,000 of gross wages, no traditional 401(k) or HSA contributions, and no itemized deductions worth more than the standard deduction. Start with the $120,000 gross. Because there are no pre-tax adjustments, adjusted gross income stays at $120,000. Subtract the 2026 standard deduction for joint filers, $31,500, to land on taxable income of $88,500. The progressive schedule then taxes that $88,500 in two slices: the first $23,850 at 10%, which is $2,385, and the remaining $64,650 at 12%, which is $7,758. Federal income tax totals $10,143. FICA is figured separately on the full $120,000: Social Security at 6.2% is $7,440 and Medicare at 1.45% is $1,740, for $9,180. Take-home pay is $120,000 minus $10,143 minus $9,180, which is $100,677, roughly $8,390 per month.
| Step | Amount |
|---|---|
| Gross income | $120,000 |
| Standard deduction (MFJ) | -$31,500 |
| Taxable income | $88,500 |
| 10% bracket (first $23,850) | $2,385 |
| 12% bracket (next $64,650) | $7,758 |
| Federal income tax | $10,143 |
| FICA (SS $7,440 + Medicare $1,740) | $9,180 |
| Take-home pay | $100,677 |
How it is calculated
Federal income tax in the United States is progressive, so no single rate applies to your whole income. The IRS sets seven bands for 2026, from 10% up to 37%, with thresholds that depend on your filing status and are indexed to inflation under Rev. Proc. 2025-32. The tool first reduces gross income by pre-tax 401(k) and HSA contributions to find adjusted gross income, then subtracts the larger of the standard deduction or your itemized deductions to find taxable income. Each band only taxes the slice of taxable income that falls inside it, which is why your marginal rate, the rate on your last dollar, is higher than your effective rate, total tax divided by income. FICA is layered on top of income tax and is charged on gross wages, with Social Security capped at the $176,100 wage base and Medicare uncapped plus a 0.9% surtax above $200,000 single or $250,000 joint.