How it works
How it works
Taxable income = income − adjustments − the larger of the standard deduction ($16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household for 2026) and your itemized deductions. The standard deduction rises by $1,650 per 65+/blind box if married or $2,050 if single or head of household. Tax is then figured with the 2026 rate tables (10%, 12%, 22%, 24%, 32%, 35%, 37%) from Rev. Proc. 2025-32, which match the 2026 Tax Rate Schedules in Form 1040-ES.
Not included
Long-term capital gains and qualified dividends (taxed at 0/15/20%), self-employment tax, the 3.8% net investment income tax, AMT, the 2025–2028 deductions for seniors, tips, overtime and car-loan interest, and credit phase-outs. Enter any deductions or credits you know yourself.
Frequently asked questions
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar of taxable income; your effective rate is total tax divided by total income. Moving into a higher bracket taxes only the dollars inside that bracket at the higher rate.
What is the 2026 standard deduction?
$16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for heads of household (IRS Rev. Proc. 2025-32).
Sources
- IRS Rev. Proc. 2025-32 (2026 tax rate tables and standard deduction)
- IRS Form 1040-ES (2026), 2026 Tax Rate Schedules