How progressive taxation works

The US federal income tax is progressive: higher income is taxed at higher rates, but only the income within each bracket is taxed at that bracket’s rate. This is the most commonly misunderstood aspect of the tax code. If you earn $50,000 as a single filer in 2024, you do not pay 22% on all $50,000. You pay 10% on the first $11,600, then 12% on the income from $11,601 to $47,150, then 22% only on the remaining $2,850. Your effective tax rate will be substantially below 22%.

2024 Federal income tax brackets

Rate	Single	Married Filing Jointly	Head of Household
10%	$0 – $11,600	$0 – $23,200	$0 – $16,550
12%	$11,601 – $47,150	$23,201 – $94,300	$16,551 – $63,100
22%	$47,151 – $100,525	$94,301 – $201,050	$63,101 – $100,500
24%	$100,526 – $191,950	$201,051 – $383,900	$100,501 – $191,950
32%	$191,951 – $243,725	$383,901 – $487,450	$191,951 – $243,700
35%	$243,726 – $609,350	$487,451 – $731,200	$243,701 – $609,350
37%	Over $609,350	Over $731,200	Over $609,350

Standard deduction (2024)

Filing Status	Standard Deduction
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$14,600
Head of Household	$21,900

Marginal rate vs. effective rate

Your marginal rate is the rate that applies to your last dollar of income - the bracket you’re currently in. Your effective rate is your total tax liability divided by your total income - always lower than the marginal rate because lower income is taxed at lower rates. Example: a single filer with $80,000 of taxable income has a marginal rate of 22% but an effective federal rate of roughly 13.6%. The stacked bar in the results above shows the proportion of your income taxed in each bracket.

State income tax

This tool covers federal income tax only. 43 states also levy a state income tax, ranging from under 3% to over 13% (California). Seven states have no income tax: Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. For a complete picture of your tax burden, add your state's effective rate to the federal effective rate shown above.

Above-the-line deductions

These deductions reduce your Adjusted Gross Income (AGI) - and therefore your taxable income - without requiring you to itemize. They are available to everyone who qualifies, even those taking the standard deduction:

Student loan interest: up to $2,500 deductible (income limits apply).
Traditional IRA contributions: up to $7,000 ($8,000 if 50+) for 2024, if you or your spouse are not covered by a workplace plan (or if income is below the phase-out threshold).
HSA contributions: up to $4,150 (self-only) or $8,300 (family) for 2024.
Self-employed health insurance: 100% of premiums are deductible.
Self-employment tax deduction: 50% of self-employment tax paid.

Child Tax Credit and EITC

Two of the most impactful credits that reduce your actual tax bill (not just taxable income):

Child Tax Credit: up to $2,000 per qualifying child under 17. Up to $1,700 is refundable in 2024 (meaning you can receive it even if you owe no tax).
Earned Income Tax Credit (EITC): up to $7,830 for 2024 for filers with 3+ qualifying children. Fully refundable. One of the most significant anti-poverty tax provisions in the US code.

Neither credit is reflected in this tool's estimate. Consult IRS publications or a tax professional to determine your eligibility.