Finance
· Reviewed by Ali Abbas
US rates only: Tax figures are based on 2026 IRS federal tax brackets. State and local taxes vary.

GST & Tax Calculator

How US Federal Income Tax Works

The United States uses a progressive marginal tax system: different portions of your income are taxed at different rates. You do not pay the top rate on all your income — only on the portion that falls within that bracket. Understanding how brackets work is essential to avoid the common misconception that earning more can somehow leave you with less after-tax income (it cannot — marginal rates apply only to the increment above each threshold).

2024 Federal Tax Brackets (Single Filers)

Taxable IncomeTax Rate
$0 – $11,60010%
$11,601 – $47,15012%
$47,151 – $100,52522%
$100,526 – $191,95024%
$191,951 – $243,72532%
$243,726 – $609,35035%
Over $609,35037%

Effective Tax Rate vs Marginal Tax Rate

Your marginal rate is the rate applied to the last dollar you earned. Your effective rate is your total tax divided by your total income — always lower than your marginal rate. Example: $60,000 taxable income (single filer 2024). Tax = (10% × $11,600) + (12% × $35,550) + (22% × $12,850) = $1,160 + $4,266 + $2,827 = $8,253. Effective rate = $8,253 ÷ $60,000 = 13.8%. Marginal rate = 22%. Understanding this distinction helps with retirement planning, bonus decisions, and side income assessment.

FICA Taxes — What Is Deducted Beyond Income Tax

Beyond federal income tax, employees pay FICA (Federal Insurance Contributions Act) taxes on earned income: Social Security tax at 6.2% on earnings up to the annual wage base ($168,600 in 2024), and Medicare tax at 1.45% on all earnings with an additional 0.9% on earnings above $200,000 (single). Combined FICA = 7.65% for most workers. These deductions are taken before federal income tax in payroll processing. This calculator includes FICA in the take-home pay estimate.

Tax rates and brackets above reflect 2024 IRS guidelines. Always verify current year figures at IRS.gov and consult a qualified tax professional for personalised advice.

How the US Federal Income Tax System Works

The United States uses a progressive (marginal) tax system — only the income within each bracket is taxed at that rate, not your entire income. Most people pay an effective rate significantly lower than their top marginal rate. Rates are updated annually by the IRS.

2026 Federal Income Tax Brackets

Tax RateSingle FilersMarried Filing Jointly
10%$0 – $11,925$0 – $23,850
12%$11,926 – $48,475$23,851 – $96,950
22%$48,476 – $103,350$96,951 – $206,700
24%$103,351 – $197,300$206,701 – $394,600
32%$197,301 – $250,525$394,601 – $501,050
35%$250,526 – $626,350$501,051 – $751,600
37%Over $626,350Over $751,600

Source: IRS Rev. Proc. 2025-28 (2026 tax year). Federal rates only — state income tax applies separately.

Standard Deduction 2026

  • Single: $15,000
  • Married Filing Jointly: $30,000
  • Head of Household: $22,500

Marginal vs Effective Tax Rate

Your marginal rate is the rate on your last dollar of income. Your effective rate is total tax ÷ total income. A single filer earning $80,000 has a 22% marginal rate but pays an effective rate of approximately 17%.

What Is FICA?

  • Social Security: 6.2% on wages up to $176,100
  • Medicare: 1.45% on all wages (+ 0.9% over $200,000)

Related Calculators

Salary Calculator — full take-home pay breakdown. Loan Calculator — calculate after-tax loan affordability.

Worked example — 2024 taxes: A single filer has $60,000 taxable income. Tax = (10% × $11,600) + (12% × $35,550) + (22% × $12,850) = $1,160 + $4,266 + $2,827 = $8,253. Effective tax rate = 13.8%. Marginal rate = 22%. After FICA (7.65% = $4,590), total deductions = $12,843. Take-home pay ≈ $47,157. The tax calculator applies all brackets and FICA automatically.

Understanding your tax liability before filing season helps with budgeting, retirement planning, and evaluating job offers. The tax calculator applies the latest IRS brackets and FICA rates transparently so you can see how each dollar of income is taxed — no hidden calculations, no surprises.

Knowing your effective tax rate and take-home pay before accepting a job offer or planning a retirement withdrawal gives you a significant financial planning advantage — this calculator provides those numbers in seconds.

Tax planning should not require a spreadsheet or an accountant for basic estimates — enter your income, select your filing status, and the calculator handles the rest using the latest IRS rate structure.

Enter the pre-tax price and tax rate:

Financial Disclaimer: Results are estimates only and should not be relied upon as financial or investment advice. Consult a licensed financial advisor for guidance specific to your situation.

How to Use

  1. 1
    Enter the amountType either the pre-tax price or the tax-inclusive total.
  2. 2
    Enter the tax rateEnter the tax percentage (e.g., 10 for GST, 20 for UK VAT, 8.5 for US sales tax).
  3. 3
    Choose calculation directionSelect "Add Tax" to calculate tax on top of a price, or "Remove Tax" to extract the pre-tax price from a total.

Frequently Asked Questions

How do I calculate VAT from a total price?
To remove VAT from a total: Pre-tax price = Total ÷ (1 + VAT rate). Example: Remove 20% VAT from £120 → £120 ÷ 1.20 = £100 pre-tax. The VAT amount is £20.
What is the difference between GST and VAT?
GST (Goods and Services Tax) and VAT (Value Added Tax) are both consumption taxes applied to the final consumer. GST is the term used in Australia, Canada, India, New Zealand, and others. VAT is used in Europe, UK, and most of the world. They function very similarly.
How do I add 10% GST to a price?
Multiply the price by 1.10. For example, $85 + 10% GST = $85 × 1.10 = $93.50. The GST amount is $8.50.
Is sales tax included in the price in the US?
In the US, prices are typically displayed without sales tax. Tax is added at checkout. This differs from most countries where VAT/GST is included in the displayed price.
How do I calculate how much tax I paid?
Tax paid = Total paid − Pre-tax price. Using reverse calculation: Pre-tax = Total ÷ (1 + rate). Example: paid $130 at 15% tax: Pre-tax = $130 ÷ 1.15 = $113.04. Tax paid = $130 − $113.04 = $16.96.
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Formula & data source: IRS Rev. Proc. 2025-28 — 2026 Tax Tables