Federal Income Tax Calculator 2026 (United States)
This Federal Income Tax Calculator is a comprehensive tool designed to estimate tax liabilities for the 2026 tax year (filed in 2027). Furthermore, it incorporates projected inflation adjustments, standard deductions, and specific provisions for capital gains, self-employment, and various itemized deductions.
Tax Data Entry (2026)
Contents
Federal Tax Brackets (2026 Projected)
For the tax year 2026, the Internal Revenue Service (IRS) is expected to adjust tax brackets for inflation by approximately 2.8% to 3.0% compared to 2025. Notably, the seven marginal tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
| 2026 Tax Specs (Projected) | |
|---|---|
| Tax Year | 2026 |
| Filing Year | 2027 |
| Top Rate | 37% |
| Std. Ded. (Single) | ~$16,100 |
| Std. Ded. (Joint) | ~$32,200 |
The projected brackets for 2026 are as follows:
| Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Taxable Income
Fundamentally, taxable income is the portion of an individual’s or a corporation’s income that is subject to income tax. Typically, for individuals, this is calculated as adjusted gross income (AGI) minus standard or itemized deductions.
Earned Income
Earned income includes wages, salaries, tips, and other taxable employee pay. Additionally, it encompasses net earnings from self-employment. Consequently, this serves as the primary source of income for most taxpayers and is subject to both income tax and FICA taxes.
Unearned Income
Conversely, unearned income refers to income not derived from employment.
- Interest Income: Generally taxed at ordinary income rates.
- Dividends: Qualified dividends are taxed at preferential capital gains rates (0%, 15%, or 20%), while non-qualified dividends are taxed as ordinary income.
- Capital Gains: Short-term capital gains (held less than a year) are taxed as ordinary income. Long-term capital gains benefit from lower tax rates.
Tax Deductions
Tax deductions serve to lower a taxpayer’s taxable income. To achieve this, the IRS offers taxpayers the choice between a standard deduction or itemized deductions.
Standard Deduction
The Standard Deduction is a flat dollar amount that reduces the income currently subject to tax. Specifically, for the 2026 tax year, the projected standard deduction amounts are:
- Single / Married Filing Separately: ~$16,100
- Married Filing Jointly: ~$32,200
- Head of Household: ~$24,150
Itemized Deductions
Alternatively, taxpayers may choose to itemize deductions if their total allowable expenses exceed the standard deduction. For example, common itemized deductions include:
- State and Local Taxes (SALT): Limited to $10,000 per year combined for income, sales, and property taxes.
- Mortgage Interest: Deductible on the first $750,000 of mortgage debt.
- Charitable Contributions: Generally deductible up to 60% of AGI for cash contributions.
- Medical Expenses: Deductible only to the extent they exceed 7.5% of AGI.
Tax Credits
Unlike deductions, which lower taxable income, tax credits reduce the tax bill dollar-for-dollar. Therefore, they are often more valuable.
- Child Tax Credit (CTC): Up to $2,000 per qualifying child under age 17.
- Other Dependent Credit: Up to $500 for dependents 17+.
- American Opportunity Tax Credit (AOTC): A credit for qualified education expenses for the first four years of higher education.
State Taxation
In addition to federal taxes, 41 states and the District of Columbia levy an individual income tax. However, nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—do not tax earned income.
FICA Taxes
The Federal Insurance Contributions Act (FICA) mandates payroll taxes. First, Social Security is taxed at 6.2% on wages up to ~$184,500. Second, Medicare is taxed at 1.45% on all wages, with an additional 0.9% surtax for high earners.