Income Tax Estimator
Estimate your 2025 federal income tax liability using current tax brackets and the standard deduction.
The most important distinction in tax conversations is effective vs marginal rate. Your marginal rate is the rate on the last dollar earned. Your effective rate is what you actually pay as a percentage of all income. A person in the 22% marginal bracket does not pay 22% of their entire income, only 22% on income in that bracket. The effective rate is almost always significantly lower than the marginal rate.
Marginal rate is not effective rate. A $85,000 income in the 22% bracket pays an effective rate closer to 13-14% after the standard deduction. Only income above the 22% bracket threshold is taxed at 22%.
2025 federal tax brackets
Single filers: 10% up to $11,925, 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, 37% above. Married filing jointly: 10% up to $23,850, 12% up to $96,950, 22% up to $206,700, 24% up to $394,600, 32% up to $501,050, 35% up to $751,600, 37% above. Standard deduction: $15,000 single, $30,000 MFJ, $22,500 head of household.
How marginal taxation works
The US uses a progressive marginal tax system. Each tax bracket applies only to income within that range. A married couple with $85,000 taxable income pays: 10% on the first $23,850 ($2,385), 12% on the next $73,100 ($8,772). Total federal tax: about $11,157, an effective rate of 13.1%. None of their income is taxed at 22% because none exceeds the $96,950 threshold.
What this calculator does not include
This is a federal income tax estimate only. It does not include FICA taxes (Social Security 6.2%, Medicare 1.45%), state income taxes, self-employment tax, capital gains tax (rates differ from ordinary income), the net investment income tax (3.8% on investment income above thresholds), or tax credits (child tax credit, earned income credit, education credits). For a complete picture, use the Net Pay Estimator which adds FICA.
Frequently asked questions
Should I itemize or take the standard deduction?
Take the larger of the two. For most taxpayers, the standard deduction ($15,000/$30,000 in 2025) exceeds itemizable deductions. You benefit from itemizing only if your qualifying deductions (state and local taxes up to $10,000, mortgage interest, charitable contributions, medical expenses above 7.5% of AGI) exceed the standard deduction. Fewer than 10% of taxpayers currently itemize.
How do pre-tax contributions reduce taxes?
401(k), HSA, and other pre-tax benefit contributions reduce adjusted gross income dollar-for-dollar. A $8,000 pre-tax 401(k) contribution in the 22% marginal bracket reduces federal tax by $1,760, plus saves FICA taxes on that amount, plus grows tax-deferred. The tax reduction makes the net cost of the contribution significantly less than its face value.