# 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\$87,450
Effective tax rate15.1%
Estimated federal taxes\$15,067
Federal taxes withheld\$0
We estimate you will owe\$15,067

#### 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

Tax rate

Taxable income bracket

Tax owed

10%

\$0 to \$9,950

10% of taxable income

12%

\$9,951 to \$40,525

\$995 plus 12% of the amount over \$9,950

22%

\$40,526 to \$86,375

\$4,664 plus 22% of the amount over \$40,525

24%

\$86,376 to \$164,925

\$14,751 plus 24% of the amount over \$86,375

32%

\$164,926 to \$209,425

\$33,603 plus 32% of the amount over \$164,925

35%

\$209,426 to \$523,600

\$47,843 plus 35% of the amount over \$209,425

37%

\$523,601 or more

\$157,804.25 plus 37% of the amount over \$523,600

Married, filing jointly

Tax rate

Taxable income bracket

Tax owed

10%

\$0 to \$19,900

10% of taxable income

12%

\$19,901 to \$81,050

\$1,990 plus 12% of the amount over \$19,900

22%

\$81,051 to \$172,750

\$9,328 plus 22% of the amount over \$81,050

24%

\$172,751 to \$329,850

\$29,502 plus 24% of the amount over \$172,750

32%

\$329,851 to \$418,850

\$67,206 plus 32% of the amount over \$329,850

35%

\$418,851 to \$628,300

\$95,686 plus 35% of the amount over \$418,850

37%

\$628,301 or more

\$168,993.50 plus 37% of the amount over \$628,300

Married, filing separately

Tax rate

Taxable income bracket

Tax owed

10%

\$0 to \$9,950

10% of taxable income

12%

\$9,951 to \$40,525

\$995 plus 12% of the amount over \$9,950

22%

\$40,526 to \$86,375

\$4,664 plus 22% of the amount over \$40,525

24%

\$86,376 to \$164,925

\$14,751 plus 24% of the amount over \$86,375

32%

\$164,926 to \$209,425

\$33,603 plus 32% of the amount over \$164,925

35%

\$209,426 to \$314,150

\$47,843 plus 35% of the amount over \$209,425

37%

\$314,151 or more

\$84,496.75 plus 37% of the amount over \$314,150

Tax rate

Taxable income bracket

Tax owed

10%

\$0 to \$14,200

10% of taxable income

12%

\$14,201 to \$54,200

\$1,420 plus 12% of the amount over \$14,200

22%

\$54,201 to \$86,350

\$6,220 plus 22% of the amount over \$54,200

24%

\$86,351 to \$164,900

\$13,293 plus 24% of the amount over \$86,350

32%

\$164,901 to \$209,400

\$32,145 plus 32% of the amount over \$164,900

35%

\$209,401 to \$523,600

\$46,385 plus 35% of the amount over \$209,400

37%

\$523,601 or more

\$156,355 plus 37% of the amount over \$523,600

Which bracket you land in depends on your filing status: single, married filing jointly, married 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

2021 tax year

2022 tax year

Single

\$12,550

\$12,950

Married, filing jointly

\$25,100

\$25,900

Married, filing separately

\$12,550

\$12,950

\$18,800

\$19,400

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: