Income Tax Calculator

1. Enter your gross annual income. This is your total wages or salary before any deductions. Include all W-2 income. Self-employment income should be reduced by the self-employment tax deduction (half of 15.3%) before entering.
2. Select your filing status. Single and Married Filing Separately have the same brackets with lower thresholds. Married Filing Jointly and Qualifying Widow(er) use wider brackets and a higher standard deduction. Head of Household falls between single and married brackets and applies if you paid more than half of household costs with a qualifying dependent.
3. Enter pre-tax contributions. Traditional 401k/403b contributions, HSA contributions, and traditional IRA contributions (if deductible) all reduce your adjusted gross income (AGI) before federal taxes are calculated.
4. Choose standard or itemized deduction. The 2024 standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Itemize only if mortgage interest, property taxes, charitable contributions, and other qualified expenses exceed these amounts.
5. Enter your state tax rate. Nine states have no income tax. Others range from 2% (North Dakota) to 13.3% (California top rate). Enter your marginal state rate for a complete picture.

Federal income tax is progressive: each bracket applies only to income within that range, not to all income. These are the 2024 brackets for single filers and married filing jointly:

Example for a single filer with $80,000 gross income, standard deduction:

Taxable income = $80,000 - $14,600 = $65,400

10% on first $11,600            = $1,160
12% on $11,601 to $47,150       = $4,266
22% on $47,151 to $65,400       = $4,015

Total federal tax               = $9,441
Effective rate = $9,441 / $80,000 = 11.8%
Marginal rate  = 22%

Legally reducing your taxable income is one of the highest-value financial moves available. These strategies work before you file:

• Maximize retirement accounts. Traditional 401k contributions are deducted from your taxable income dollar-for-dollar. At a 22% marginal rate, contributing $10,000 to your 401k saves $2,200 in federal taxes. The 2024 limit is $23,000 ($30,500 if 50+).
• Contribute to an HSA. Health Savings Account contributions are triple tax-advantaged: deductible going in, tax-free growth, and tax-free withdrawals for medical expenses. The 2024 limit is $4,150 individual, $8,300 family. HSAs also work as a secondary retirement account after age 65.
• Harvest tax losses. If you have investments with unrealized losses, selling them offsets capital gains dollar-for-dollar. Up to $3,000 of net capital losses can offset ordinary income each year, with excess carried forward indefinitely.
• Bunch charitable deductions. If your annual charitable giving is below the standard deduction threshold, consider giving two years of donations in one year to exceed the standard deduction, then taking the standard deduction the next year.
• Know the standard vs. itemized breakeven. The 2024 standard deduction is $14,600 (single) and $29,200 (married). Itemizing only makes sense if mortgage interest, property taxes (capped at $10,000 SALT), and other qualifying expenses exceed these amounts.