Calculate federal and state income taxes with current tax brackets and deductions
Income tax is a tax levied on individuals and businesses based on their earnings. The U.S. uses a progressive tax system where higher incomes are taxed at higher rates through tax brackets.
Understanding your tax liability helps with financial planning, withholding adjustments, estimated tax payments, and retirement contributions. It ensures you're neither overpaying nor facing penalties.
Federal tax brackets range from 10% to 37% for 2024. Your marginal rate applies only to income above each threshold, while your effective rate is the average tax on all income.
This calculator provides estimates based on standard tax rules. It doesn't account for all credits, alternative minimum tax, or complex situations. Professional tax advice is recommended for accuracy.
Tax professionals use similar calculations for tax planning, quarterly estimates, and year-end strategies. They combine these with detailed knowledge of tax code nuances and optimization strategies.
Effective tax planning involves maximizing deductions, timing income and expenses, utilizing tax-advantaged accounts, and understanding how life changes affect your tax situation.
The U.S. has seven federal tax brackets ranging from 10% to 37% for 2024 tax year
Over 75% of taxpayers receive refunds, with direct deposit refunds arriving in 21 days or less
Standard deduction nearly doubled since 2017, reducing the percentage who itemize to under 10%
For 2024, federal tax brackets for single filers are: 10% ($0-$11,000), 12% ($11,001-$44,725), 22% ($44,726-$95,375), 24% ($95,376-$182,050), 32% ($182,051-$231,250), 35% ($231,251-$578,125), and 37% (over $578,125).
Take the standard deduction ($13,850 single, $27,700 married filing jointly for 2024) unless your itemized deductions exceed these amounts. Common itemized deductions include mortgage interest, state/local taxes (capped at $10,000), and charitable donations.
This calculator provides estimates based on current tax laws and rates. Actual taxes may vary based on specific circumstances, deductions, credits, and local variations. For precise calculations, consult a tax professional.
Consult a tax professional for complex situations including self-employment, rental properties, significant investments, major life changes, tax debt, IRS audits, or when tax planning could provide substantial savings.
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