How is income tax calculated in United States?
Federal income tax is worked on the calendar year. Wages less the standard deduction ($16,100 single, $32,200 married filing jointly for 2026) are taxed through seven brackets from 10% to 37%. Social Security (6.2% up to $184,500 of wages) and Medicare (1.45% on all wages, plus 0.9% above $200,000 single or $250,000 joint) are withheld on top.
Most states, and some cities, add their own income tax. Seven states — Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming — tax no wages and add no employee payroll levy, so for them the federal figure is the whole answer.
What is the income tax rate in United States?
| Taxable income | Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,400 – $50,400 | 12% |
| $50,400 – $105,700 | 22% |
| $105,700 – $201,775 | 24% |
| $201,775 – $256,225 | 32% |
| $256,225 – $640,600 | 35% |
| Over $640,600 | 37% |
| Taxable income | Rate |
|---|---|
| $0 – $24,800 | 10% |
| $24,800 – $100,800 | 12% |
| $100,800 – $211,400 | 22% |
| $211,400 – $403,550 | 24% |
| $403,550 – $512,450 | 32% |
| $512,450 – $768,700 | 35% |
| Over $768,700 | 37% |
What mandatory salary deductions apply?
- Social Security: 6.2% of wages up to the 2026 wage base of $184,500.
- Medicare: 1.45% of all wages, plus Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: $7,083.33 a month
A single employee in Texas on $85,000 a year.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | $7,083.33 | $85,000.00 |
| Income tax | $822.50 | $9,870.00 |
| Compulsory contributions | $541.88 | $6,502.50 |
| Take-home pay | $5,718.96 | $68,627.50 |
Effective income tax rate 11.6%; all deductions 19.3%.
How can employees legally reduce their taxes?
- Pre-tax contributions to a 401(k), 403(b) or HSA lower taxable wages.
- Itemizing instead of taking the standard deduction helps when deductible expenses are larger.
- Credits, such as the Child Tax Credit, come off the tax itself and are worth more than a deduction of the same amount.
Frequently asked questions
What is the 2026 standard deduction?
$16,100 for single filers and married filing separately, $32,200 for married filing jointly and $24,150 for heads of household.
Why does the calculator mark my state as partial?
State income taxes have not been verified for every state yet. Where your state taxes wages, the result shows federal tax and FICA and says plainly that state tax is missing.
Is Social Security charged on all my pay?
No. In 2026 it stops at $184,500 of wages. Medicare has no cap.
What is my marginal rate?
The rate on your last dollar of taxable income. Your effective rate — tax divided by gross pay — is always lower.
Official sources
- Internal Revenue Service: IRS releases tax inflation adjustments for tax year 2026. Read 5 November 2026.
- Internal Revenue Service: Topic no. 751, Social Security and Medicare withholding rates (2026 wage base $184,500). Read 5 November 2026.
- Internal Revenue Service: Questions and answers for the Additional Medicare Tax. Read 5 November 2026.
- Internal Revenue Service: Self-employment tax (Social Security and Medicare taxes). Read 5 November 2026.
- Internal Revenue Service: Rev. Proc. 2025-32 sec. .26: 2026 qualified business income thresholds; QBI deduction overview. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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