Income Tax Calculator
Calculate your federal and state income tax liability with deductions, credits, and accurate 2024 tax brackets. Get a detailed breakdown of your tax obligations.
Tax Summary
Federal Tax Brackets
Take-Home Pay
Understanding Income Tax Calculation
Income tax calculation involves several steps and components. Understanding how your tax liability is determined can help you make better financial decisions and potentially reduce your tax burden through proper planning.
How Income Tax is Calculated
- Determine Filing Status: Your filing status affects tax brackets and standard deductions
- Calculate Gross Income: All income from wages, investments, and other sources
- Subtract Above-the-Line Deductions: Contributions to retirement accounts, student loan interest, etc.
- Apply Standard or Itemized Deductions: Reduce taxable income by either the standard deduction or itemized expenses
- Subtract Exemptions: Personal and dependent exemptions (phased out after 2025)
- Calculate Taxable Income: Gross income minus deductions and exemptions
- Apply Tax Brackets: Progressive tax rates on portions of taxable income
- Add Alternative Minimum Tax (AMT): If applicable
- Subtract Tax Credits: Direct reductions in tax liability
- Add State and Local Taxes: State income tax and local taxes
2024 Federal Tax Brackets
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 - $11,600 | $0 - $23,200 | $0 - $16,550 |
| 12% | $11,601 - $47,150 | $23,201 - $94,300 | $16,551 - $63,100 |
| 22% | $47,151 - $100,525 | $94,301 - $201,050 | $63,101 - $100,500 |
| 24% | $100,526 - $191,950 | $201,051 - $383,900 | $100,501 - $191,950 |
| 32% | $191,951 - $243,725 | $383,901 - $487,450 | $191,951 - $243,700 |
| 35% | $243,726 - $609,350 | $487,451 - $731,200 | $243,701 - $609,350 |
| 37% | $609,351+ | $731,201+ | $609,351+ |
Standard Deductions for 2024
- Single: $14,600
- Married Filing Jointly: $29,200
- Married Filing Separately: $14,600
- Head of Household: $21,900
- Qualifying Widow(er): $29,200
Tips to Reduce Your Tax Liability
Maximize Deductions
- Contribute to retirement accounts
- Itemize if it benefits you
- Take advantage of above-the-line deductions
Utilize Tax Credits
- Child Tax Credit
- Earned Income Tax Credit
- Education credits
Tax-Advantaged Accounts
- 401(k) contributions
- IRA contributions
- Health Savings Accounts
Year-Round Planning
- Make quarterly tax payments
- Track deductible expenses
- Plan major purchases strategically
Important Note
This calculator provides estimates based on current tax laws and brackets. Tax laws can change, and your actual tax liability may vary based on your specific situation. For personalized tax advice, consult a qualified tax professional or CPA.
Remember that this is not a substitute for professional tax preparation or advice. Always verify calculations with official IRS resources or a tax professional.