Tax Calculator
Calculate income tax
Frequently Asked Questions
How do I calculate income tax?
Income tax is calculated using progressive brackets. Each portion of income is taxed at its bracket rate. For US 2024: 10% on first $11,600, 12% on $11,601-$47,150, 22% on $47,151-$100,525, and so on. The calculator applies all brackets automatically.
What is the difference between marginal and effective tax rate?
Marginal rate is the tax on your last dollar of income (your highest bracket). Effective rate is total tax divided by total income. With $80,000 income: marginal rate is 22%, but effective rate is approximately 15% because lower brackets are taxed less.
How do tax deductions reduce my tax bill?
Deductions reduce your taxable income. A $5,000 deduction at a 22% marginal rate saves $1,100 in tax. Standard deduction for 2024: $14,600 (single), $29,200 (married filing jointly). Itemize only if deductions exceed the standard amount.
What is the difference between tax deductions and tax credits?
Deductions reduce taxable income (saving you your marginal rate × deduction amount). Credits reduce tax owed dollar-for-dollar. A $1,000 credit saves exactly $1,000 in tax, regardless of your bracket. Credits are more valuable.
How do I estimate quarterly tax payments?
If you owe $1,000+ in tax beyond withholding, you may need quarterly payments. Estimate annual tax, subtract expected withholding, divide by 4. Due dates: April 15, June 15, September 15, January 15. The calculator generates quarterly estimates.