Tax Calculator

Estimate how much you'll owe in federal taxes, using your income, deductions and credits — all in just a few steps.

Taxable income
$87,600
Effective tax rate
15.1%
Estimated federal taxes
$15,103
Federal taxes withheld
$0
We estimate you will owe
$15,103

Income

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Dependents

401(k) contributions

IRA contributions

Withheld

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How we got here?

The United States taxes income progressively, meaning that how much you make will place you within one of seven federal tax brackets:

Single Filers

Taxable Income

Tax Rate

$0 to $9,875

10% of taxable income

$9,876 to $40,125

$987.50 plus 12% of the amount over $9,875

$40,126 to $85,525

$4,617.50 plus 22% of the amount over $40,125

$85,526 to $163,300

$14,605.50 plus 24% of the amount over $85,525

$163,301 to $207,350

$33,271.50 plus 32% of the amount over $163,300

$207,351 to $518,400

$47,367.50 plus 35% of the amount over $207,350

$518,401 or more

$156,235 plus 37% of the amount over $518,400

Married Filing Jointly

Taxable Income

Tax Rate

$0 to $19,750

10% of taxable income

$19,751 to $80,250

$1,975 plus 12% of the amount over $19,750

$80,251 to $171,050

$9,235 plus 22% of the amount over $80,250

$171,051 to $326,600

$29,211 plus 24% of the amount over $171,050

$326,601 to $414,700

$66,543 plus 32% of the amount over $326,600

$414,701 to $622,050

$94,735 plus 35% of the amount over $414,700

$622,051 or more

$167,307.50 plus 37% of the amount over $622,050

Married Filing Separately

Taxable Income

Tax Rate

$0 to $9,875

10% of taxable income

$9,876 to $40,125

$987.50 plus 12% of the amount over $9,875

$40,126 to $85,525

$4,617.50 plus 22% of the amount over $40,125

$85,526 to $163,300

$14,605.50 plus 24% of the amount over $85,525

$163,301 to $207,350

$33,271.50 plus 32% of the amount over $163,300

$207,351 to $311,025

$47,367.50 plus 35% of the amount over $207,350

$311,026 or more

$83,653.75 plus 37% of the amount over $311,025

Head of Household

Taxable Income

Tax Rate

$0 to $14,100

10% of taxable income

$14,101 to $53,700

$1,410 plus 12% of the amount over $14,100

$53,701 to $85,500

$6,162 plus 22% of the amount over $53,700

$85,501 to $163,300

$13,158 plus 24% of the amount over $85,500

$163,301 to $207,350

$31,830 plus 32% of the amount over $163,300

$207,351 to $518,400

$45,926 plus 35% of the amount over $207,350

$518,401 or more

$154,793.50 plus 37% of the amount over $518,400

Which bracket you land in depends on your filing status: single, married filing jointly or filing separately, and head of household. Choosing the right filing status can have a big effect on how your tax bill is calculated.

Deciding how to take your deductions — that is, how much to subtract from your adjusted gross income, thus reducing your taxable income — can make a huge difference in your tax bill. But making that decision isn’t always easy. The standard deduction is a flat reduction in your adjusted gross income, the amount determined by Congress and meant to keep up with inflation. Nearly 70% of filers take it, because it makes the tax-prep process quick and easy.

Filing Status

2019

2020

Single individual

$12,200

$12,400

Married filing jointly

$24,400

$24,800

Married filing separately

$12,200

$12,400

Head of household

$18,350

$18,650

People who itemize tend to do so because their deductions add up to more than the standard deduction, saving them money. The IRS allows you to deduct a litany of expenses from your income, but record-keeping is key — you need to be able to prove, usually with receipts, that the expenses you’re deducting are valid. This means effort, but it might also mean savings.

Both reduce your tax bill, but in different ways. Tax credits directly reduce the amount of tax you owe, dollar for dollar. A tax credit valued at $1,000, for instance, lowers your tax bill by $1,000.

Tax deductions, on the other hand, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. For example, if you fall into the 25% tax bracket, a $1,000 deduction saves you $250.

Estimating a tax bill starts with estimating taxable income. In a nutshell, to estimate taxable income, we take gross income and subtract tax deductions. What’s left is taxable income. Then we apply the appropriate tax bracket (based on income and filing status) to calculate tax liability. Tax credits and taxes already withheld from your paychecks might cover that bill for the year. If not, you may need to pay the rest at tax time. If you’ve paid too much, you’ll get a tax refund.

What tax bracket am I in?

The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates. Here are the current tax brackets.

Woo hoo! I might get a big tax refund!

Don’t get too excited; this could be a sign that you’re having too much tax withheld from your paycheck and needlessly living on less of your earnings all year. You can use Form W-4 to reduce your withholding easily right now so you don’t have to wait for the government to give you your money back later.

Oh no! I can’t pay this estimated tax bill! What do I do?

You can sign up for a payment plan on the IRS website. There are several to choose from, and they can provide peace of mind. Here’s how IRS installment plans work, plus some other options for paying a big tax bill.

I need more help with my tax situation. Where can I go?

We have you covered. These NerdWallet articles can point you toward: