How this calculator works
The calculator follows the same order of steps as Form 1040. Each step uses the official 2026 figures, so the result is an estimate of your federal income tax for the 2026 tax year (the return you file in 2027).
- Start with income. You enter wages plus other ordinary income, such as interest or freelance profit. Long-term capital gains are not part of this tool.
- Subtract pre-tax contributions. Traditional 401(k), 403(b) and HSA contributions come off first. The result is your adjusted gross income (AGI). The calculator treats AGI as your modified AGI (MAGI) for the phase-out tests below.
- Subtract your deduction. You pick the standard deduction or enter an itemized total. If you choose the standard deduction, the extra amount for age 65 or older is added for you and, if married, your spouse.
- Subtract the new OBBBA deductions. Qualified tips, the qualified overtime premium and the senior deduction come off next. Each one shrinks as MAGI rises past its phase-out point.
- Apply the 2026 brackets. What remains is taxable income. It is taxed in layers at 10%, 12%, 22%, 24%, 32%, 35% and 37%.
- Subtract the Child Tax Credit. The credit for children under 17 reduces your tax, but not below zero. Any refundable part that could not be used is shown on a separate line.
The results show your tax, your marginal rate, your effective rate and a bracket-by-bracket breakdown. To explore the brackets alone, the tax bracket calculator takes taxable income directly.
2026 federal income tax figures at a glance
These are the main numbers the calculator uses. They come from IRS Revenue Procedure 2025-32 and the One, Big, Beautiful Bill Act (OBBBA).
| Item | Single | Married filing jointly | Head of household |
|---|---|---|---|
| Standard deduction | $16,100 | $32,200 | $24,150 |
| Extra deduction, age 65+ (each) | $2,050 | $1,650 | $2,050 |
| 10% bracket ends at | $12,400 | $24,800 | $17,700 |
| 22% bracket starts at | $50,400 | $100,800 | $67,450 |
| 37% bracket starts at | $640,600 | $768,700 | $640,600 |
| Tips / overtime deduction phase-out starts | $150,000 | $300,000 | $150,000 |
| Senior deduction phase-out starts | $75,000 | $150,000 | $75,000 |
The full bracket tables for every filing status are in our 2026 federal tax brackets guide.
Worked example
Single filer with a 401(k)
Maria is single. She earns $85,000 in wages and puts $5,000 into a traditional 401(k). She takes the standard deduction and has no tips, overtime or children.
- AGI: $85,000 − $5,000 = $80,000
- Taxable income: $80,000 − $16,100 = $63,900
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 ($12,400 to $50,400) = $4,560
- 22% on the last $13,500 ($50,400 to $63,900) = $2,970
- Total tax: $1,240 + $4,560 + $2,970 = $8,770
Maria’s marginal rate is 22%. Her effective rate is $8,770 ÷ $85,000, or about 10.3% of her gross income. Only $13,500 of her income is taxed at 22%.
Married couple with overtime and two children
Sam and Lee file jointly. They earn $120,000 and contribute $4,000 pre-tax. Lee earned $6,000 in qualified overtime premium pay. They have two children under 17.
- AGI: $120,000 − $4,000 = $116,000 (well under the $300,000 phase-out)
- After the standard deduction: $116,000 − $32,200 = $83,800
- After the overtime deduction: $83,800 − $6,000 = $77,800 taxable income
- Tax: $2,480 (10% of $24,800) + $6,360 (12% of $53,000) = $8,840
- Child Tax Credit: 2 × $2,200 = $4,400
- Tax after credit: $8,840 − $4,400 = $4,440
Their tax covers the whole credit, so no refundable amount is left over. Their effective rate is $4,440 ÷ $120,000, or 3.7%.
What changed for 2026 under OBBBA
OBBBA made the seven TCJA tax rates permanent. It also made the larger standard deduction permanent and kept personal exemptions at zero. So 2026 looks familiar, with inflation-adjusted numbers.
The bigger news is a set of new deductions for tax years 2025 through 2028. They are claimed on Schedule 1-A and work whether or not you itemize:
- Qualified tips: up to $25,000, for workers in occupations on the IRS list of customarily tipped jobs.
- Qualified overtime: only the premium part of overtime pay (the “half” in time-and-a-half), up to $12,500, or $25,000 on a joint return.
- Senior deduction: $6,000 per person age 65 or older. This is on top of the regular extra standard deduction for age 65+.
The tips and overtime deductions shrink by $100 for each $1,000 of MAGI over the threshold. The senior deduction shrinks by 6% of MAGI over its threshold. Married couples must file jointly to claim any of the three. Our guide to no tax on tips and overtime covers who qualifies in more detail.
Marginal rate vs effective rate
A common worry is that a raise will push all your income into a higher bracket. That is not how brackets work. Each rate applies only to the slice of income inside its band.
Your marginal rate tells you the tax on your next dollar. Your effective rate is your total tax divided by your income. The effective rate is almost always much lower. Read more in marginal vs effective tax rate.
What this calculator doesn’t include
- State and local income taxes.
- Long-term capital gains and qualified dividends. Use the capital gains tax calculator for those.
- Self-employment tax, Social Security and Medicare. See the self-employment tax calculator.
- The alternative minimum tax (AMT) and the Net Investment Income Tax.
- Other credits, such as the Earned Income Tax Credit, education credits and the $500 credit for other dependents.
- The car loan interest deduction and other adjustments to income not listed above.
- The difference between AGI and MAGI. The tool assumes they are the same.
Treat the result as an estimate. For your actual return, check the IRS 2026 inflation adjustment release and the Form 1040 instructions, or ask a tax professional.