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Federal Tax · 2025

Federal Income Tax Calculator

Enter your income and filing status to see exactly how the 2025 U.S. tax brackets apply — every dollar of tax shown bracket by bracket, with marginal rate and effective rate explained side by side.

Based on 2025 federal tax brackets (IRS Rev. Proc. 2024-61). Informational only — not professional tax advice.
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Wages, salary, or other ordinary income

Deductions

Informational only — not professional tax advice.

Enter your income to see your federal tax breakdown — every bracket applied, dollar by dollar.

Methodology

How federal income tax is calculated

The U.S. federal income tax uses a progressive bracket system. Taxable income equals gross income minus your deduction (standard or itemized). That taxable income is then taxed at progressively higher rates, but only the income within each bracket is taxed at that bracket's rate — not your total income.

Formula

Taxable income  =  Gross income − Deduction
Federal tax     =  Σ (income in each bracket × bracket rate)

Tax year scope

This calculator uses 2025 tax year brackets as published in IRS Rev. Proc. 2024-61 (November 2024) — the official IRS document setting 2025 inflation-adjusted tax thresholds, standard deduction amounts, and other parameters.

Stated assumptions and limitations

  • Ordinary income only. This calculator covers wages, salary, self-employment income, ordinary dividends, and interest. It does not account for qualified dividends or long-term capital gains (taxed at separate rates), the Alternative Minimum Tax (AMT), the Net Investment Income Tax (NIIT), or any tax credits.
  • Deductions. Only the 2025 standard deduction or a user-entered itemized total is applied. Above-the-line adjustments (IRA contributions, student loan interest, HSA deductions, etc.) are not modeled.
  • Single tax year. Results assume all income falls in tax year 2025 under the selected filing status. Multi-year or alternative minimum tax scenarios are out of scope.

Last reviewed: January 2025. Rates reviewed annually after IRS publishes updated Rev. Proc. (typically November).

Frequently asked questions

What is the difference between marginal tax rate and effective tax rate?

Your marginal rate is the rate that applies to your last dollar of taxable income — the highest bracket you fall into. Your effective rate is your total federal tax divided by your gross income. Because the U.S. uses a progressive bracket system, only income above each threshold is taxed at the higher rate. A single filer with $75,000 in taxable income in 2025 does not pay 22% on all of it — they pay 10% on the first $11,925, 12% on the next slice up to $48,475, and 22% only on the remaining $26,525 above $48,475.

What is the 2025 standard deduction?

For tax year 2025, the standard deductions are: $15,000 for single filers and married filing separately; $30,000 for married filing jointly; and $22,500 for head of household. These amounts are set by IRS Rev. Proc. 2024-61 and represent a roughly 2.7% inflation adjustment from 2024.

Does this calculator include state income taxes?

No — this calculator covers federal income tax only, using 2025 IRS bracket tables. State income tax is calculated separately because rates, brackets, and deduction rules vary significantly by state. CiteTax will offer state income tax calculators for all 50 states.

How do tax brackets actually work?

Each bracket applies only to the income that falls within its range. If you are a single filer with $60,000 in taxable income in 2025, you pay 10% on the first $11,925, 12% on income from $11,925 to $48,475, and 22% on the remaining $11,525 above $48,475. Moving into a higher bracket never means your entire income is taxed at that rate — only the marginal dollars above each threshold are taxed at the higher rate.

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