SALT deduction is capped at $10,000 ($5,000 if married filing separately) for 2025.
These reduce your Adjusted Gross Income (AGI) before applying deductions or credits.
Leave blank if you only want to see your tax liability without factoring in payments already made.
Estimating your federal income tax before you file can save you from surprises on April 15. This 2025 Federal Income Tax Estimator covers all seven tax brackets under IRS Rev. Proc. 2024-40, updated for the One Big Beautiful Bill Act (OBBA) signed in July 2025, which raised the standard deduction to $15,750 for single filers and $31,500 for joint filers. Enter your wages, self-employment income, capital gains, deductions, and credits to get an instant breakdown of your tax liability — including your effective rate, marginal bracket, a visual breakdown by bracket, and whether you can expect a refund or owe a balance. No login, no personal data stored. Results update instantly as you calculate.
How the Federal Income Tax Estimator Works
The US federal income tax system is progressive, meaning each portion of your income is taxed at a different rate. The calculator follows these five steps:
Step 1 — Gross Income: Add up all sources: W-2 wages, self-employment income, interest, dividends, capital gains, retirement distributions, and other income.
Step 2 — Adjusted Gross Income (AGI): Subtract above-the-line deductions: 401(k) or 403(b) contributions, IRA contributions, HSA contributions, student loan interest (capped at $2,500), and half of self-employment (SE) tax. SE tax itself is also calculated at 15.3% on net SE income up to $176,100 and 2.9% above that.
Step 3 — Taxable Income: Subtract either the 2025 standard deduction or your itemized deductions (mortgage interest, SALT capped at $10,000, charitable donations), whichever is larger. The result is your federal taxable income.
Step 4 — Tax Computation: Ordinary income is taxed through the seven brackets (10% through 37%). Long-term capital gains are stacked on top of ordinary income and taxed at preferential rates (0%, 15%, or 20%) based on your total taxable income level.
Step 5 — Credits and Withholding: Tax credits (child tax credit at $2,200 per qualifying child in 2025, education credits, others) reduce your tax dollar-for-dollar. Subtract any federal withholding or estimated tax payments to find your expected refund or balance due.
Example 1: Single Filer, $75,000 Salary
A single filer, age 38, with $75,000 in W-2 wages, $8,000 in a 401(k), no other income, standard deduction, no dependents:
- AGI: $75,000 – $8,000 = $67,000
- Taxable income: $67,000 – $15,750 = $51,250
- Tax: 10% on first $11,925 ($1,192.50) + 12% on $11,925-$48,475 ($4,386) + 22% on $48,475-$51,250 ($610.50) = $6,189
- Effective rate: 8.3% | Marginal rate: 22%
Example 2: Married Filing Jointly, $130,000 Combined Income
Married couple filing jointly: $100,000 W-2 combined, $30,000 long-term capital gains, $6,000 each in 401(k), standard deduction, 2 dependents (child tax credit auto-applied at $4,400):
- AGI: $130,000 – $12,000 = $118,000
- Taxable income: $118,000 – $31,500 = $86,500
- Ordinary income tax: 10% on $23,850 ($2,385) + 12% on $73,100 ($8,772) = $11,157 (on $86,500 ordinary)
- Capital gains tax: stacked above $86,500 ordinary, all within 0% bracket = $0
- Credits: -$4,400 CTC = Tax owed: $6,757
- Effective rate: 5.2%
2025 Federal Tax Brackets Reference Table
| Rate | Single | Married Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $17,000 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 | $17,001 – $64,850 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 | $64,851 – $103,350 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 | $197,301 – $250,525 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 | $250,526 – $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $626,350 |
Frequently Asked Questions
What is the standard deduction for 2025?
For tax year 2025, the standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household — increased by the One Big Beautiful Bill Act (OBBA). Taxpayers age 65 or older receive an additional $2,000 (single) or $1,600 per qualifying spouse (married).
What is the difference between marginal and effective tax rate?
Your marginal rate is the tax rate applied to your last dollar of income — your highest bracket. Your effective rate is the average percentage of your total income paid in taxes. Because the US tax system is progressive, your effective rate is always lower than your marginal rate.
How are long-term capital gains taxed in 2025?
Long-term capital gains (assets held more than 1 year) are taxed at preferential rates: 0% if your total taxable income is under $48,350 (single) or $96,700 (married jointly); 15% up to $533,400 / $600,050; and 20% above those thresholds. This calculator applies these rates automatically by stacking gains on top of ordinary income.
What is self-employment tax and how is it calculated?
Self-employed individuals pay both the employee and employer portions of FICA taxes: 15.3% on net self-employment income (92.35% of gross SE income) up to the Social Security wage base of $176,100 for 2025, then 2.9% (Medicare only) above that. You can deduct half of SE tax from your gross income as an above-the-line adjustment, which this calculator handles automatically.
When is the 2025 tax return due?
The deadline to file your 2025 federal tax return (or request an automatic extension) is April 15, 2026. An extension gives you until October 15, 2026 to file, but any taxes owed are still due by April 15. Underpayment may result in penalties and interest.
Does this calculator include state income taxes?
No. This tool estimates federal income tax only. State income taxes vary widely — from 0% in states like Florida, Texas, and Nevada to over 13% in California. To estimate your total tax burden, add your state income tax estimate to the federal figure this calculator provides.
What is the child tax credit amount for 2025?
For 2025, the child tax credit is $2,200 per qualifying child under age 17, increased by OBBA from the prior $2,000 level. The credit phases out at higher income levels: above $200,000 (single) or $400,000 (married filing jointly). This calculator uses the per-child amount and does not apply phase-outs, so treat the result as an approximation if your income is near those thresholds.
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