Estimate your federal income tax, refund or amount owed using official 2026 IRS brackets — including all One Big Beautiful Bill Act (OBBBA) changes: senior deduction, no-tax-on-tips, no-tax-on-overtime, Child Tax Credit $2,200, and SALT $40,400.
🧾 Income Tax Estimator💰 Refund / Owed📊 Capital Gains⭐ OBBBA New Deductions
🧾Tax Estimator
💰Refund/Owed
📊Capital Gains
⭐OBBBA Savings
🧾2026 Income Tax Estimator
🧾 Uses official 2026 IRS tax brackets and the One Big Beautiful Bill Act (OBBBA) changes. All rates effective for tax year 2026 (returns filed in 2027).
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Schedule C net profit
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⭐ OBBBA 2025–2028 New Deductions
New tax law deductions — enter qualifying amounts below.
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Max $25,000 deduction (OBBBA); phases out MAGI >$150k single
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Max $12,500 deduction (OBBBA); phases out MAGI >$150k single
OBBBA 2025–2028; phases out MAGI >$75k single / $150k MFJ
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New US-assembled vehicle only (OBBBA); phases out >$100k
Pre-Tax Adjustments to Income
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2026 limit: $24,500
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2026 limit: $7,000 ($8,000 age 50+)
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2026 limit: $4,300 self-only
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Max $2,500 deduction
Deductions
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2026 cap: $40,400 (OBBBA)
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First $750k of loan principal
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0.5% AGI floor applies (OBBBA)
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Tax Credits
Child Tax Credit: $2,200/child (2026)
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EIC, education, energy credits, etc.
💰Tax Refund or Amount Owed
💰 Enter your estimated tax liability (from Mode 1) and your total withholdings from W-2s and estimated payments to calculate whether you'll owe or receive a refund.
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From your W-2(s) — sum all employers
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Quarterly payments (self-employed, etc.)
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CTC: $2,200/child (2026)
📊Capital Gains Tax Calculator
📊 Long-term capital gains (assets held 12+ months) are taxed at preferential rates of 0%, 15%, or 20% in 2026 — not at ordinary income rates. Short-term gains are taxed as ordinary income.
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Held <12 months — taxed as ordinary income
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Held 12+ months — 0%, 15%, or 20%
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Losses offset gains; up to $3,000/yr offsets ordinary income
ℹ️ The 3.8% NIIT applies to investment income for single filers with MAGI above $200,000 (or $250,000 MFJ). The calculator shows NIIT when applicable.
⭐OBBBA New Deductions — Your Savings
⭐ The One Big Beautiful Bill Act (signed July 4, 2025) introduced new temporary deductions effective 2025–2028. Enter your qualifying amounts to see your total tax savings from these new provisions.
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Deductible up to $25,000; phases out MAGI >$150k/$300k
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Deductible up to $12,500; phases out MAGI >$150k/$300k
Phases out MAGI >$75k single / $150k MFJ
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US-assembled new vehicle only; phases out MAGI >$100k/$200k
Was $2,000/child before OBBBA
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New cap: $40,400 (was $10,000)
Federal Income Tax
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Enter your income above
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Effective Tax Rate
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Federal income tax ÷ gross income
🍩 Where Your Income Goes
📋 Tax Summary
🏛️ Federal Tax Bracket Breakdown
⚠️ This calculator uses 2026 IRS official tax brackets, standard deductions, and OBBBA provisions for estimation purposes. Results are approximations — actual tax liability depends on many factors including exact income, deduction elections, phase-outs, AMT, state taxes, and individual circumstances. Not tax advice. Consult a qualified tax professional for your personal situation. No data stored. ✦ CatchyTools.com
What Is a Tax Calculator?
A Tax Calculator is a financial tool that estimates your federal income tax liability based on your income, filing status, deductions, and credits — using the current year's official IRS tax brackets and rules. It answers the most important tax question every American faces: "How much do I owe the federal government this year, and will I get a refund or have a balance due when I file?"
Our 2026 Tax Calculator is built on official IRS figures and incorporates every major change from the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. This includes the 2026 adjusted tax brackets, the increased standard deduction, the new $6,000 senior deduction, the no-tax-on-tips deduction (up to $25,000), the no-tax-on-overtime deduction (up to $12,500), the Child Tax Credit increase to $2,200/child, the expanded SALT deduction cap ($40,400), and the new auto loan interest deduction — making it the most current and comprehensive free tax estimator available.
📌 2026 key tax figures used in this calculator: Standard deduction: $16,100 (single) / $32,200 (MFJ) / $24,150 (HOH). Child Tax Credit: $2,200/child. SALT cap: $40,400. Senior deduction: $6,000 (phases out MAGI >$75k single). Tips deduction: up to $25,000. Overtime deduction: up to $12,500. Social Security wage base: $184,500. 401(k) limit: $24,500. IRA limit: $7,000. HSA limit: $4,300 (self-only).
What Is Tax? — A Plain-Language Guide
A tax is a mandatory financial charge levied by a government on individuals, businesses, or transactions to fund public services — roads, schools, military, Social Security, Medicare, and countless other government programs. In the United States, taxes operate at three levels: federal (the IRS), state, and local. The most significant tax for most Americans is the federal income tax, which is assessed on income earned from wages, self-employment, investments, and other sources.
The US federal income tax system is progressive and marginal — meaning your income is divided into brackets, and each bracket is taxed at a different rate. You do not pay your highest bracket rate on all of your income. Instead, the first portion of your income is taxed at 10%, the next portion at 12%, and so on up through the 37% top rate. This is why your marginal rate (the rate on your last dollar of income) is always higher than your effective rate (your total tax divided by your total income) — and why the distinction matters enormously for financial planning.
Taxable Income = Gross Income − Adjustments − Standard (or Itemized) Deduction
Federal Tax = Apply 2026 IRS brackets to taxable income (marginal rates) Tax Due / Refund = Federal Tax − Tax Credits − Withholdings & Estimated Payments
2026 Federal Tax Brackets — Official IRS Rates (OBBBA)
The following tax brackets are from the official IRS Revenue Procedure 2025-32, adjusted for 2026 with the OBBBA's inflation adjustments to the 10% and 12% brackets. These apply to income earned in 2026, which you will report on returns filed in early 2027:
Rate
Single Filers — Taxable Income
Married Filing Jointly
Head of Household
10%
$0 – $12,400
$0 – $24,800
$0 – $17,800
12%
$12,401 – $50,400
$24,801 – $100,800
$17,801 – $63,750
22%
$50,401 – $105,700
$100,801 – $211,400
$63,751 – $101,450
24%
$105,701 – $201,775
$211,401 – $403,550
$101,451 – $194,400
32%
$201,776 – $256,225
$403,551 – $512,450
$194,401 – $256,225
35%
$256,226 – $640,600
$512,451 – $768,700
$256,226 – $640,600
37%
Over $640,600
Over $768,700
Over $640,600
The standard deduction for 2026 is $16,100 for single filers and $32,200 for married filing jointly — subtracted from gross income before the brackets above are applied. Most taxpayers (over 90%) take the standard deduction rather than itemizing, as it is larger than the sum of their itemized deductions for most households.
One Big Beautiful Bill Act — New 2026 Tax Deductions
The OBBBA, signed July 4, 2025, introduced several new deductions that directly reduce taxable income for qualifying Americans. These deductions are available for tax years 2025 through 2028 unless otherwise noted:
OBBBA Deduction
Maximum Amount
Phase-Out Threshold (MAGI)
Who Qualifies
No Tax on Tips (qualified tip income)
$25,000/yr
Single >$150k / MFJ >$300k
Tip workers in qualifying occupations
No Tax on Overtime (qualified OT pay)
$12,500/yr single, $25,000 MFJ
Single >$150k / MFJ >$300k
W-2 employees receiving FLSA overtime
Senior Deduction (age 65+)
$6,000/taxpayer
Single >$75k / MFJ >$150k
Taxpayers 65+ by Dec. 31, 2026
Auto Loan Interest
Actual interest paid
Single >$100k / MFJ >$200k
New US-assembled vehicle purchased for personal use
Child Tax Credit (increased)
$2,200/qualifying child
Single >$200k / MFJ >$400k
Qualifying dependent children
SALT Deduction Cap (expanded)
$40,400 (vs. prior $10,000)
$500k+ income faces phase-down
Itemizers in high-tax states
Related Financial Calculators
Tax planning works best when integrated with your broader financial picture. These tools help you connect your tax situation to your income, retirement, and budget:
A tax calculator estimates your federal income tax liability using your income, filing status, deductions, and credits — matched against the current year's official IRS tax brackets. It calculates: (1) your gross income from all sources; (2) your Adjusted Gross Income (AGI) after above-the-line deductions like 401(k) contributions, IRA contributions, and student loan interest; (3) your taxable income after the standard or itemized deduction; (4) the federal income tax on your taxable income using the 2026 marginal bracket rates (10% through 37%); (5) your tax credits (Child Tax Credit, EITC, etc.) which directly reduce the calculated tax; and (6) your net tax liability or refund — the difference between your calculated tax and what you've already paid through withholding. A complete tax calculator also handles FICA (Social Security and Medicare), capital gains rates, and the new OBBBA deductions for tips, overtime, seniors, and auto loan interest.
The 2026 federal income tax brackets were established by the IRS via Revenue Procedure 2025-32, incorporating the One Big Beautiful Bill Act's inflation adjustments. For single filers: 10% on taxable income up to $12,400; 12% from $12,401 to $50,400; 22% from $50,401 to $105,700; 24% from $105,701 to $201,775; 32% from $201,776 to $256,225; 35% from $256,226 to $640,600; 37% above $640,600. For married filing jointly, the thresholds are approximately doubled: 10% on the first $24,800; 12% up to $100,800; 22% up to $211,400; 24% up to $403,550; 32% up to $512,450; 35% up to $768,700; 37% above $768,700. The standard deduction for 2026 is $16,100 (single) and $32,200 (MFJ). Remember: these are marginal brackets — only the income within each bracket is taxed at that rate, not your entire income.
The One Big Beautiful Bill Act (OBBBA), signed by President Trump on July 4, 2025, made permanent most of the individual tax provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that were set to expire December 31, 2025, and added several new provisions. Key impacts for 2026 taxes: Permanent changes: The lower 2018–2025 tax rates (10%–37%) are now permanent. The higher standard deduction is permanent and inflation-adjusted. The $2,200 Child Tax Credit is permanent (up from pre-TCJA $1,000). The 20% pass-through deduction (QBI) is permanent. The $15 million estate tax exclusion is preserved. New temporary deductions (2025–2028): No-tax-on-tips (up to $25,000 deduction), no-tax-on-overtime (up to $12,500), $6,000 senior deduction for those 65+, auto loan interest deduction for new US-assembled vehicles. SALT deduction: Raised from $10,000 to $40,400 for most taxpayers (phases down above $500,000 income, returning to $10,000 in 2030).
These two numbers are consistently confused but represent completely different things. Your marginal tax rate is the rate that applies to your last (highest) dollar of income — it is the highest bracket your income reaches. A single filer with $80,000 in taxable income in 2026 has a marginal rate of 22%, because the top portion of their income ($80,000 − $50,400 = $29,600) falls in the 22% bracket. Your effective tax rate is your total federal income tax divided by your total income — it represents your average rate across all your income. That same $80,000 filer might pay approximately $11,600 in federal tax, making their effective rate about 14.5% — substantially lower than their 22% marginal rate. The effective rate is always lower than the marginal rate in a progressive system because the lower tax rates on the first portions of income drag the average down. Understanding this distinction matters for evaluating whether a raise moves you into a "higher bracket" (it does not increase your rate on income you were already earning — only on the additional amount).
You should take whichever option produces the larger deduction — the standard deduction or the sum of your itemized deductions. Since the TCJA doubled the standard deduction in 2018 (and the OBBBA made this permanent), the majority of Americans — over 90% — now take the standard deduction. For 2026, the standard deduction is $16,100 (single) and $32,200 (MFJ). To benefit from itemizing, your deductions would need to exceed these amounts. Common itemized deductions include: state and local taxes paid (now capped at $40,400 under OBBBA), mortgage interest (on the first $750,000 of qualified residence loan), charitable contributions (0.5% AGI floor applies under OBBBA), and certain medical expenses exceeding 7.5% of AGI. Itemizing makes most sense for: homeowners in high-tax states with large mortgages, high earners in states like California or New York (who benefit significantly from the expanded $40,400 SALT cap), and taxpayers with significant charitable giving. If your itemizable deductions are even slightly below the standard deduction threshold, always take the standard deduction.
The OBBBA's no-tax-on-tips deduction allows certain workers to deduct qualifying tip income of up to $25,000 from their taxable income, reducing their federal income tax. To qualify: you must work in an occupation that "customarily and regularly" received tips on or before December 31, 2024 (the IRS published a qualifying occupations list in October 2025 — it includes food service, hospitality, salon workers, rideshare drivers, delivery workers, and other service industries); the tips must be reported on your W-2 or 1099; the deduction phases out as your Modified Adjusted Gross Income exceeds $150,000 for single filers ($300,000 for MFJ). The deduction is available to both W-2 employees and self-employed workers in qualifying occupations, though self-employed workers in "Specified Service Trades or Businesses" (SSTBs) are not eligible. Note: tips are still subject to FICA taxes (Social Security and Medicare) — the OBBBA only exempts qualifying tips from federal income tax, not from payroll taxes.
Capital gains taxation depends on how long you held the asset. Short-term gains (assets held 12 months or less) are taxed as ordinary income at your regular marginal bracket rates (10%–37%). Long-term gains (assets held more than 12 months) receive preferential tax treatment under separate brackets: 0%, 15%, or 20%. The 2026 long-term capital gains brackets for single filers: 0% on gains when taxable income (including gains) falls within the 10% or 12% brackets; 15% on gains where taxable income falls within the 22%–35% brackets (roughly up to $566,800 for single filers); 20% on gains where taxable income exceeds $566,800. Additionally, the 3.8% Net Investment Income Tax (NIIT) applies to investment income when MAGI exceeds $200,000 (single) or $250,000 (MFJ), effectively making the top rate on long-term gains 23.8%. Capital losses can offset capital gains dollar-for-dollar; up to $3,000 of net capital losses per year can be used to offset ordinary income, and unused losses carry forward indefinitely to future years.
The most effective legal tax reduction strategies available to most Americans in 2026 are: Maximize pre-tax retirement contributions: 401(k) contributions up to $24,500 reduce your W-2 income dollar-for-dollar before federal and state income taxes are calculated. At a 22% marginal rate, maxing a 401(k) saves $5,390 in federal taxes alone. Contribute to an HSA: Triple tax-advantaged (pre-tax contribution, tax-free growth, tax-free for medical). The 2026 self-only limit is $4,300. Claim the OBBBA new deductions: Tips, overtime, senior ($6,000), and auto loan interest deductions are new for 2026 — many taxpayers will miss these. Maximize the Child Tax Credit: $2,200/child in 2026 directly reduces your tax bill. Tax-loss harvesting: Selling investments at a loss to offset capital gains. Contribute to a traditional IRA: Deductible contributions (subject to income phase-outs) reduce AGI. Time income and deductions: If you can control the timing of income (e.g., bonus, Roth conversion), plan to stay within lower brackets.
The 2026 standard deduction amounts are: $16,100 for single filers and married filing separately; $32,200 for married filing jointly; $24,150 for heads of household. These amounts represent tax-free income — they are subtracted from your gross income before any federal tax is calculated. Virtually every taxpayer without a mortgage or large state tax bills benefits from the standard deduction, since it exceeds their itemizable deductions. Additionally, taxpayers age 65 or older (or blind) qualify for an additional standard deduction on top of the base amount: approximately $1,600–$2,000 for those over 65. And in 2026, qualifying seniors (65+) may stack the new OBBBA $6,000 senior deduction on top of the standard deduction and the age-based additional amount — potentially reducing taxable income by over $23,000 for a single filer who qualifies for all three. This stacking opportunity is one of the most significant tax benefits available to retirees in 2026.
Self-employment (SE) tax is the mechanism through which self-employed workers pay the equivalent of both the employee and employer portions of FICA taxes. W-2 employees pay 7.65% FICA (6.2% SS + 1.45% Medicare) and their employer pays a matching 7.65%. Self-employed workers pay the full 15.3% (12.4% SS + 2.9% Medicare) on their net self-employment income. On $60,000 of self-employment income, SE tax is approximately $8,478 — a significant addition to the income tax estimate. However, self-employed workers can deduct half of the SE tax from their AGI before calculating income tax, partially offsetting the burden. The SE tax applies on top of regular income tax — it is not replaced by it. Our calculator in Mode 0 (Tax Estimator) automatically adds self-employment tax when you enter self-employment income. For freelancers and independent contractors, the combined SE tax plus income tax rate can exceed 40% at moderate income levels, making tax-advantaged retirement accounts (SEP-IRA, Solo 401k) especially valuable for self-employed individuals.