What is Income Tax Calculator?
Models progressive federal marginal tax brackets, 7.65% FICA payroll contributions, and state tax deductions to calculate net take-home earnings.
How to Use This Calculator
- Enter annual gross wage.
- Select tax filing status.
- Choose standard deduction and enter state tax percentage.
- Review effective tax rate and annual take-home pay.
The Mathematical Formula & Variables
Taxable Income = Gross - Standard Deduction; Apply graduated marginal brackets
Step-by-Step Worked Example
Scenario: $75,000 income for Single filer with standard deduction ($14,600).
- Taxable income = $75,000 - $14,600 = $60,400.
- 10% on first $11,600 = $1,160.
- 12% on $11,600 to $47,150 ($35,550) = $4,266.
- 22% on remainder ($13,250) = $2,915.
- Total federal = $8,341. FICA (7.65%) = $5,737.50.
Result: $14,078.50 Total Taxes
Frequently Asked Questions
What is the difference between marginal tax rate and effective tax rate?
Your marginal rate is the tax paid on your last dollar earned (e.g. 22%), while effective rate is the average percentage paid across your entire gross income (e.g. 18.7%).