How Federal Income Tax Is Calculated
The US federal income tax is calculated solely on your taxable income, which equals your gross income minus your standard or itemized deductions.
For the 2026 Tax Year, the projected standard deduction for single filers is $15,000 and for married couples filing jointly is $30,000. This means the first $15,000 (or $30,000) you earn is completely tax-free at the federal level.
Frequently Asked Questions
Does this calculation include state taxes or FICA?
No. This tool specifically isolates your federal individual income tax liability. For a full calculation including Social Security, Medicare, and state taxes, use our US Income Tax Calculator.
What are the federal tax bracket thresholds for 2026?
The 2026 federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each rate applies only to the portion of income that falls within that specific range.