Salary Calculator

How Are Taxes Calculated in This Salary Calculator?

This salary calculator uses the 2026 federal marginal tax brackets to estimate your federal income tax. Your income is reduced by the applicable standard deduction ($15,000 for single filers, $30,000 for married filing jointly), and the remaining taxable income is taxed progressively across seven brackets ranging from 10% to 37%. Each bracket applies only to income within that bracket's range, so your effective tax rate is typically lower than your highest marginal rate.

For FICA taxes, we apply the 6.2% Social Security tax up to the annual wage cap of $176,100 and the 1.45% Medicare tax on all wages. High earners (above $200,000 single / $250,000 MFJ) also pay an additional 0.9% Medicare surtax. State income tax is calculated using each state's specific brackets or flat rate, with applicable state-level standard deductions applied before taxation.

Federal Tax Brackets vs State Income Tax: What You Need to Know

Federal income tax in the US is progressive, meaning you pay higher rates only on income above each bracket threshold. For 2026, the seven federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction eliminates tax on the first $15,000 of income for single filers and $30,000 for married couples filing jointly, which means a significant portion of your income is tax-free at the federal level.

State income tax varies dramatically. Some states have no income tax at all, while others impose flat rates or progressive brackets reaching over 13% in the highest California bracket. When comparing job offers across states, the state tax difference alone can be worth $5,000–$20,000+ annually depending on your income level.

States with no individual income tax:

• Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

Frequently Asked Questions