2024 U.S. Federal Tax Calculator

Estimate your federal income taxes with standard or itemized deductions and see your effective and marginal rates.

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Include wages, interest, etc. before standard/itemized deductions.

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What this calculator does

It estimates your federal income tax, effective and marginal rates, based on your inputs for filing status, income, and deductions.

How income tax is calculated

Taxable income = income − deductions. Tax owed is computed per bracket, then credits/withholding adjust your final liability.

Who should use this

  • Wage earners planning withholdings
  • Freelancers estimating quarterly taxes

Examples

  • Single filer, $85,000 income, standard deduction → Effective rate around 15–18%
  • Married filing jointly, $150,000 income → Check marginal vs effective difference

Understanding Income Taxes

Marginal vs Effective Tax Rate

Understanding the difference between marginal and effective tax rates is crucial for tax planning:

Marginal Tax Rate

Your marginal tax rate is the rate you pay on your last dollar of income—the highest tax bracket your income reaches. For example, if you're in the 22% bracket, your marginal rate is 22%.

Effective Tax Rate

Your effective tax rate is your total tax divided by your total income—the average rate you actually pay. This is always lower than your marginal rate because lower portions of your income are taxed at lower brackets.

Example: If you earn $85,000 as a single filer in 2024, your marginal rate might be 22%, but your effective rate (total tax ÷ income) might be around 15-18% after accounting for deductions and progressive brackets.

Standard vs Itemized Deductions

You can choose to take either the standard deduction or itemize your deductions—whichever is larger:

Standard Deduction

A fixed amount that reduces your taxable income. For 2024:

Advantages: Simple, no record-keeping required, automatically applied.

Itemized Deductions

Specific expenses you can deduct, including:

Advantages: Can exceed standard deduction if you have significant qualifying expenses.

Disadvantages: Requires detailed record-keeping and documentation.

How Tax Brackets Work

The U.S. uses a progressive tax system with multiple brackets. Your income is taxed at different rates as it moves through brackets:

Example for 2024 Single Filer:

If you earn $85,000, you don't pay 22% on all $85,000. You pay 10% on the first portion, 12% on the next, and 22% only on income above $47,150.

Frequently Asked Questions

What's the difference between marginal and effective tax rate?
Your marginal rate is the highest bracket you're in (the rate on your last dollar). Your effective rate is your total tax divided by total income (the average rate you actually pay). Effective rate is always lower.
Should I take the standard deduction or itemize?
Take whichever is larger. Most taxpayers take the standard deduction. Itemize only if your qualifying expenses (mortgage interest, SALT, charitable contributions, etc.) exceed the standard deduction amount.
Will earning more push me into a higher tax bracket?
Only the income above the bracket threshold is taxed at the higher rate. Earning more never causes you to pay more tax on your existing income—you just pay the higher rate on the additional income.
What is taxable income?
Taxable income is your gross income minus deductions. This is the amount used to determine which tax brackets apply and how much tax you owe.