What is the Standard Deduction vs. Itemized Deductions?

The **Standard Deduction** is a fixed dollar amount that you can subtract from your income to reduce your tax bill. **Itemized Deductions** are a list of eligible expenses (like mortgage interest, state and local taxes, and charitable donations) that you can subtract instead. You should use whichever one is larger to get the biggest tax break.

Does this calculator include state or local taxes?

No. This calculator is for estimating **US Federal Income Tax only**. State and local income tax laws vary widely by location and are not included in this calculation. This is for informational and planning purposes and is not tax advice.

Income Tax Calculator (US Federal 2024)

Your Estimated 2024 Federal Tax

Effective Tax Rate

Marginal Tax Rate

Total Tax Liability

Demystifying Your Tax Bill

For many people, income tax is the single largest expense of the year, yet it's also one of the most confusing. The US uses a system of **progressive tax brackets**, which means not all of your income is taxed at the same rate. This calculator is designed to clear up that confusion and give you a close estimate of what you'll owe in federal taxes for 2024.

Simply enter your income and filing status, and our tool does the rest. It automatically applies the correct **standard deduction** (or uses your itemized deductions if they're higher) and then runs your taxable income through the latest tax brackets. You'll see not just your final tax bill, but also your **Effective Tax Rate** (your actual tax rate) and your **Marginal Tax Rate** (the rate on your next dollar earned), providing crucial insight for financial planning. *This is an estimate for federal taxes only and does not constitute tax advice.*

Tools for Tax-Smart Planning

401(k) & IRA Calculator: Understand how pre-tax contributions can lower your taxable income.
Retirement Calculator: Plan for your future by seeing how taxes impact your retirement goals.
Commission Calculator: See the pre-tax value of a sales commission before estimating the tax impact.

Frequently Asked Questions (FAQ)

What is the difference between Marginal and Effective tax rates?

Your **Marginal Tax Rate** is the rate applied to your highest dollars of income—it's your "tax bracket." Your **Effective Tax Rate** is your total tax divided by your total gross income. It represents the actual percentage of your income that you paid in taxes and is always lower than your marginal rate due to deductions and lower tax brackets.

What is the Standard Deduction?

The Standard Deduction is a specific dollar amount that you can subtract from your income to reduce your tax bill if you choose not to itemize deductions. The amount depends on your filing status, age, and other factors. This calculator uses the latest 2024 standard deduction amounts.

Does this include state and local taxes (SALT)?

No, this calculator is for **US Federal Income Tax only**. It does not calculate state, city, FICA (Social Security & Medicare), or any other taxes. Your total tax burden will be higher than the federal amount shown here.