What is the difference between marginal and effective tax rate?

Your marginal tax rate is the rate you pay on your last dollar of income (the bracket you fall into). Your effective tax rate is the average rate across all your income — always lower than marginal because lower dollars are taxed at lower rates. For example, earning $80,000 as a single filer puts you in the 22% bracket, but your effective rate is around 13%.

What is FICA tax and how much do I owe in 2026?

FICA is the Federal Insurance Contributions Act tax that funds Social Security (6.2%) and Medicare (1.45%). In 2026 the Social Security wage base is $176,100 — income above that is exempt from the 6.2% portion. Most employees pay 7.65% total; employers match this. Self-employed individuals pay 15.3%.

Federal Income Tax Calculator 2026 — Estimate Your Tax Bill

📋Income & Filing

Gross W-2 / Salary

$10,000$1,000,000

Additional Income (freelance, etc.)

$0$200,000

Filing Status

Pre-Tax Deductions (401k, HSA, FSA)

$0$30,000

2026: 401(k) limit $23,500 (+$7,500 catch-up 50+). HSA $4,300 single.

Itemized Deductions (0 = use standard)

$0$100,000

Standard deduction: $15,000. Using standard (higher).

State Income Tax Rate

0.0%15.0%

Optional. 9 states have no income tax.

2026 Federal Tax Brackets

Rate	Single	Married Jointly
10%	$0 – $11,925	$0 – $23,850
12%	$11,926 – $48,475	$23,851 – $96,950
22% ◀ You	$48,476 – $103,350	$96,951 – $206,700
24%	$103,351 – $197,300	$206,701 – $394,600
32%	$197,301 – $250,525	$394,601 – $501,050
35%	$250,526 – $626,350	$501,051 – $751,600
37%	Over $626,350	Over $751,600

What This Calculator Does

The Federal Income Tax Calculator estimates your 2026 federal income tax bill, take-home pay, and effective vs. marginal tax rates. It applies the 2026 progressive tax brackets to your taxable income (after subtracting pre-tax retirement contributions and the standard or itemized deduction), then adds FICA payroll taxes — Social Security and Medicare — to show your total tax burden.

Because the US uses a progressive (marginal) system, only the income within each bracket is taxed at that bracket's rate — not your entire income. This calculator shows that breakdown clearly, along with your effective rate (total tax ÷ total income), which is almost always lower than your marginal rate (the rate on your last dollar earned).

Formula

Tax = Σ [bracket portion of taxable income × bracket rate], plus FICA = (wages × 6.2%, capped) + (wages × 1.45%)

Taxable income is calculated as gross income minus pre-tax deductions (401k, HSA) minus the standard or itemized deduction (whichever is higher). Federal tax is then computed by applying each bracket's rate only to the income that falls within that bracket. FICA taxes are calculated separately on gross wages: Social Security at 6.2% up to the annual wage base ($185,100 for 2026), and Medicare at 1.45% on all wages (plus an additional 0.9% above $200,000 single / $250,000 married).

AGIAdjusted gross income — gross income minus pre-tax deductions

Taxable IncomeAGI minus the standard (or itemized) deduction

Marginal RateThe tax rate applied to your last dollar of taxable income

Effective RateTotal tax ÷ gross income — your true average tax rate

Examples

Example 1: Single filer, $85,000 salary, $6,500 to 401(k)

AGI = $78,500. Standard deduction (single, 2026) = $15,750. Taxable income ≈ $62,750.

Federal tax ≈ $8,180 (12% marginal bracket would actually push into 22% — effective rate ≈ 9.6%). Plus FICA ≈ $6,503 (6.2% SS + 1.45% Medicare on $78,500). Take-home ≈ $63,800/year, or about $5,317/month.

Example 2: Married filing jointly, $150,000 combined income

No pre-tax deductions. Standard deduction (MFJ, 2026) = $31,500. Taxable income ≈ $118,500.

Federal tax ≈ $16,000 (effective rate ≈ 10.7%, marginal rate 22%). Plus FICA ≈ $11,475. Take-home ≈ $122,500/year, or about $10,210/month.

Example 3: High earner hitting the Social Security wage base

Single filer, $250,000 salary, $0 pre-tax deductions, standard deduction $15,750. Taxable income ≈ $234,250.

Federal tax ≈ $51,900 (marginal rate 35%, effective rate ≈ 20.8%). Social Security tax caps at $185,100 × 6.2% ≈ $11,476 (no SS tax on the remaining $64,900). Medicare ≈ $3,625 plus an extra 0.9% on income above $200,000 (≈ $450). Take-home ≈ $182,500/year.

Frequently Asked Questions

What are the 2026 federal income tax brackets?+

For 2026, 7 brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. Single filers enter the 22% bracket at $48,476. Source: IRS Rev. Proc. 2024-61.

What is the 2026 standard deduction?+

Single: $15,750 · Married Jointly: $31,500 · Head of Household: $23,625 · Married Separately: $15,750.

What is FICA tax?+

Social Security: 6.2% on wages up to $185,100. Medicare: 1.45% on all wages (+0.9% above $200K single/$250K married). Self-employed pay both sides (15.3%).

Federal Income Tax Calculator 2026

What This Calculator Does

Formula

Examples

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