Calculate your federal and state income tax liability. Estimate tax owed, effective tax rates, and refund amounts for comprehensive tax planning.
Income tax is a progressive tax system where higher income levels are taxed at higher rates. Understanding how federal and state taxes are calculated helps you plan effectively and estimate your tax liability throughout the year.
Your total tax liability depends on your income sources, filing status, deductions, and credits. This calculator provides estimates based on current tax brackets and standard deduction amounts.
Include salary, investment income, retirement distributions, business income
This is the amount subject to income tax brackets
Progressive tax rates applied to income ranges
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 - $11,925 | $0 - $23,850 | $0 - $17,000 |
| 12% | $11,926 - $48,475 | $23,851 - $96,950 | $17,001 - $64,850 |
| 22% | $48,476 - $103,350 | $96,951 - $206,700 | $64,851 - $103,350 |
| 24% | $103,351 - $197,300 | $206,701 - $394,600 | $103,351 - $197,300 |
| 32% | $197,301 - $250,525 | $394,601 - $501,050 | $197,301 - $250,525 |
| 35% | $250,526 - $644,275 | $501,051 - $751,600 | $250,526 - $644,275 |
| 37% | $644,276+ | $751,601+ | $644,276+ |
| Filing Status | 2025 Standard Deduction | Additional (65+) | Additional (Blind) |
|---|---|---|---|
| Single | $15,000 | +$1,950 | +$1,950 |
| Married Filing Jointly | $30,000 | +$1,550 each | +$1,550 each |
| Married Filing Separately | $15,000 | +$1,550 | +$1,550 |
| Head of Household | $22,500 | +$1,950 | +$1,950 |
| State | Tax Type | Rate Range | Notes |
|---|---|---|---|
| California | Progressive | 1% - 13.3% | Highest rate in US |
| New York | Progressive | 4% - 10.9% | Plus NYC tax |
| Texas | None | 0% | No state income tax |
| Florida | None | 0% | No state income tax |
| Illinois | Flat | 4.95% | Flat rate |
| Pennsylvania | Flat | 3.07% | Flat rate |
Reduce both federal and state taxes in most cases
Traditional IRA/401(k) Contributions: Up to annual limits, reduces current year taxes.
Health Savings Account (HSA): Triple tax advantage - deductible, grows tax-free, tax-free withdrawals for medical.
Student Loan Interest: Up to $2,500 deduction subject to income limits.
Self-Employment Tax: Deduct half of self-employment tax paid.
| Itemized Deduction | Limit/Notes | 2025 Considerations |
|---|---|---|
| State and Local Taxes (SALT) | $10,000 cap | Includes income, property, sales tax |
| Mortgage Interest | $750,000 loan limit | Primary and secondary residence |
| Charitable Contributions | AGI limits apply | Cash: 60% of AGI limit |
| Medical Expenses | 7.5% AGI threshold | Only excess over threshold |
Value = Deduction Amount × Marginal Tax Rate
Much more valuable than deductions
| Credit | Maximum Amount | Income Limits | Refundable |
|---|---|---|---|
| Child Tax Credit | $2,000 per child | Phases out at higher incomes | Partially |
| Earned Income Tax Credit | Up to $7,430 | Lower income families | Yes |
| American Opportunity Credit | $2,500 | Education expenses | Partially |
| Retirement Savers Credit | Up to $1,000 | Lower income savers | No |
When Required: If you'll owe $1,000 or more in taxes and haven't paid enough through withholding.
Safe Harbor Rule: Pay 100% of last year's tax (110% if AGI > $150,000) to avoid penalties.
Payment Dates: January 15, April 15, June 15, September 15 for the prior year's quarters.
Incorrect Filing Status: Can significantly affect tax rates and available deductions.
Missing Deductions/Credits: Not taking advantage of all available tax benefits.
Poor Record Keeping: Missing documentation for deductions and business expenses.
Not Planning Ahead: Waiting until year-end to consider tax strategies.
Ignoring State Taxes: Focusing only on federal while ignoring state tax implications.