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USA Income Tax Calculator

Use this income tax calculator to determine your expected income tax, your marginal tax rate, average tax rate, and disposable income. Include a 401k contribution and this calculator will provide you with your expected tax savings, and re-calculate the effects of making the 401k contribution automatically.

Assumptions

- All tax rates provided by The Tax Foundation website, taxfoundation.org. Tax calculations include federal marginal tax rates for expected federal tax brackets only, and do not include any deductions or exemptions.
- Always consult a tax professional before making important decisions financial decisions with possible tax implications.

 

USA Tax Calculator

The USA Tax Calculator has been designed to provide quick and useful information to users, in order to help them make decisions and plan for the future.  The USA Tax Calculator will give you the amount of taxes owing, the amount of disposable income you have after paying taxes, the highest marginal tax rate that you pay, based on your income, and the average tax rate that you pay on all of your taxable income.

The amounts stated in each column are the federal income tax.

The USA Tax Calculator also includes the ability to calculate the effects of a 401k contribution.  Contributions to 401k plans are tax deductible against taxable income.  This means that if you make a $5000 contribution into your 401k, that $5000 will be deducted from your income before taxes are calculated.  This can have many effects, many of which are calculated in the USA Tax Calculator.  When a 401k contribution is included in the USA Tax Calculator, all columns will recalculate automatically to include the effects of the contribution.  The tax savings column will indicate the tax benefit received from making a 401k contribution.  The taxes owing column will adjust to account for the tax savings.  The disposable income column will adjust to account for both the changes in the tax payable as well as the 401k contribution itself.  It is assumed that the funds deposited into the 401k are removed from the disposable income, as they are typically invested for the long term and saved to be used as income during retirement.  Since a contribution to your 401k will have the effect of reducing your taxable income, it is possible that your marginal tax rate may change if the amount contributed reduces your taxable income into a lower marginal tax bracket.  Your average tax rate will also be adjusted to account for the reduction in taxable income and the change in your taxes owing.

The USA Tax Calculator was designed to be easy to use and intuitive, as well as provide high quality basic tax information for each income earner in the United States of America.  Use this calculator to get a basic understanding of what your income taxes will look like, as well as gain a basic understanding of the value of your 401k contribution.

The income tax system in America is tremendously complex, and there is no one calculator that can provide a complete understanding of how the federal tax system will affect you.  It is important to cultivate a good relationship with a tax professional in order to gain the advice you need to make excellent financial decision.

A lot of thought went into what exactly makes a good tax calculator, and the USA Tax Calculator is the result.  We feel that it is important for people to gain the important information they need in an easy to understand format.  It is important to combine as much information as possible into each measure of output.  The USA Tax Calculator provides detailed output, but in an efficient and intuitive manor.  This tax calculator gives the user the total basic income tax owing for the federal jurisdiction.  The goal was to provide high value information from simple input.  The user only needs to enter their taxable income, and the tax calculator will do the rest of the work for them.  By including only one more data point, the 401k contribution, all of the information will be recalculated to measure the effects of this action.

 

Income Tax in the US

Income tax in the US is extremely complex.  It is the result of decades of analysis and adjustment from every tax jurisdiction in the country.  In order to gain a better understanding of how income tax in the US works, it might be simpler to separate the important concepts, and review each one separately.  The most important concept to understand would be the idea of marginal tax brackets.

Has anyone ever told you that they turned down more income because they were afraid of paying a higher tax rate, and that they thought they would actually receive less money after the higher tax rate than if they had never accepted the raise?  This is a common misconception about tax rates and tax brackets in the US. 

In the US, we use marginal tax brackets.  This means that the income specific to each tax bracket is taxed at the rate for that bracket only, and that rates are not applied to any income outside of this bracket.  Here is a simplified example to demonstrate the concept.

Imagine you make $30,000, and you are offered a raise of $10,000.  There are four tax brackets in this example, $0 - $10,000, you pay 10%, $10,001 - $20,000, you pay 20%, $20,001 - $30,000, you pay 30%, and income over $30,000 you pay 40%. 

Your current tax payable would be the sum of the tax owing for each bracket.  10% of $10,000, 20% of 10,000, and 30% of 10,000.  Add them up, and you get $1,000 + $2,000 + $3,000 = $6000.  This means that the income in each bracket is charged the rate applied to it only.  Any additional income would have a tax rate applied to it, depending on which bracket it is in, but the previous income is taxed the same.  The new $10,000 raise would be taxed at 40%, you would pay $4,000 on the new $10,000.  This 40% rate would NOT be applied to any of the previous income, only to the new income in that tax bracket.

The term marginal means the next unit, in terms of tax brackets, it means the rate that is applied to the next dollar of income.  The rate only changes on the next dollar of income once the current tax bracket is full.  This is a new concept to many people, even though they have been paying these taxes for many years.  Understanding how this marginal tax system works is important for those who wish to express a qualified opinion of the tax system.  When a change is made to the tax code, it is difficult to make a proper decision about the benefit unless one understands how it will fit in with the current marginal tax bracket system that we use in the US.

Now this system of marginal tax brackets is obviously more complex than using a flat tax, where all income is taxed at the same rate, no matter how much you make.  So the obvious question is “why”?  Why would we choose to use a more complicated system when a simpler one is available?

The answer to this question is that Americans have decided that it is important to have a progressive tax system in the US.  The main benefit of the marginal tax rate system is that it shifts some of the burden of paying the taxes from those who are less able to do so to those who are more able to do so.  It is pretty simple to understand that those who make little income do not have a lot of disposable income.  The value of every dollar of income to a low income earner is high, as this money is needed to pay for the necessities of life.  As income grows, it becomes easier to pay for the necessities of life, and the value of each dollar shrinks relatively.  Since those who earn higher incomes are better able to pay more taxes without sacrificing the necessities of life, it makes sense that those who earn more pay more.

The next important concept to understand is the various definitions of income.  In terms of income in regards to tax, the government looks upon the sources of income differently.  Basically, there is earned income, dividend income, and taxable gain income.  Taxable gain refers to the gain or loss one receives when an asset is purchased and then sold.  If some shares in a company are purchased for $10,000, and then sold later for $20,000, then a $10,000 capital gain has occurred.  The government has treated capital gains differently over time.

Dividends are the profits that are paid to the owners of a company by the company.  Corporations in America are obliged to pay tax on the profits they receive each year.  These after tax profits can then be paid to shareholders of the company as dividends.  Since these profits have already been taxed, taxing these dividends fully again would be a form of double taxation.  Governments want to encourage people to invest in companies, as this helps grow the economy, and so they provide a preferential tax treatment for dividend income.

If you work and receive pay, then you make earned income.  This income is simply taxed at 100% of its value.  No adjustments are made to the value of earned income before tax rates are applied. 

Another important concept to understand is the income tax deduction.  Governments want to encourage some behavior that may benefit the country, such as attending post secondary education.  In order to encourage this type of behavior, the government will allow some expenses to be deducted from the total amount of income before tax rates are applied.  Deductions are powerful tax tools, since they reduce the total amount of taxes owed.  Because of the marginal tax rate system we have in the US, deductions reduce income from the highest tax bracket first, saving the most tax possible.  This is very important to those who are able to use deductible expenses to save taxes.

401k contributions are tax deductible, within the limits set each year.  This provides Americans with a powerful incentive to save using a 401k.  The US Tax Calculator above will help you understand how making a 401k contribution will benefit your tax payment. 

In addition to allowing deductions, governments will also allow tax credits to be used to reduce the actual amount of income tax payable.  Again, this is to encourage certain behavior.  The tax credit is applied to the actual taxes owing, and can reduce your total tax bill.

As you can see, there is a lot to understand in the American tax code.  The US Tax Calculator above will help you to understand the basic tax information you need to make plans, but it is always advisable to find a qualified tax professional for detailed proper financial planning.

 

US Income Tax Brackets

The marginal income tax brackets and rates are provided in the following section.  These are the federal income tax brackets.  These brackets and rates are used to calculate the federal portion of income tax payable in the US Tax Calculator above.

 

2014 Federal Income Tax Rates and Tax Brackets

The 2014 US Income Tax Brackets for those who file as Single

Income $0 - $9,075 is taxed at a rate of 10%
Income $9,075 - $36,900 is taxed at a rate of 15%
Income $36,900 - $89,350 is taxed at a rate of 25%
Income $89,350 - $186,350 is taxed at a rate of 28%
Income $186,350 - $405,100 is taxed at a rate of 33%
Income $405,100 - $406,750 is taxed at a rate of 35%
Income above $406,750 is taxed at a rate of 39.6%

 

The 2014 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $9,075 is taxed at a rate of 10%
Income $9,075 - $36,900 is taxed at a rate of 15%
Income $36,900 - $74,425 is taxed at a rate of 25%
Income $74,425 - $113,425 is taxed at a rate of 28%
Income $113,425 - $202,550 is taxed at a rate of 33%
Income $202,550 - $228,800 is taxed at a rate of 35%
Income above $228,800 is taxed at a rate of 39.6%

 

The 2014 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $18,150 is taxed at a rate of 10%
Income $18,150 - $73,800 is taxed at a rate of 15%
Income $73,800 - $148,850 is taxed at a rate of 25%
Income $148,850 - $226,850 is taxed at a rate of 28%
Income $226,850 - $405,100 is taxed at a rate of 33%
Income $405,100 - $457,600 is taxed at a rate of 35%
Income above $457,600 is taxed at a rate of 39.6%

 

The 2014 US Income Tax Brackets for those who file as Head of Household

Income $0 - $12,950 is taxed at a rate of 10%
Income $12,950 - $49,400 is taxed at a rate of 15%
Income $49,400 - $127,550 is taxed at a rate of 25%
Income $127,550 - $206,600 is taxed at a rate of 28%
Income $206,600 - $405,100 is taxed at a rate of 33%
Income $405,100 - $432,200 is taxed at a rate of 35%
Income above $432,200 is taxed at a rate of 39.6%

 

2013 Federal Income Tax Rates and Tax Brackets

The 2013 US Income Tax Brackets for those who file as Single

Income $0 - $8,925 is taxed at a rate of 10%
Income $8,925 - $36,250 is taxed at a rate of 15%
Income $36,250 - $87,850 is taxed at a rate of 25%
Income $87,850 - $183,250 is taxed at a rate of 28%
Income $183,250 - $398,350 is taxed at a rate of 33%
Income $398,350 - $400,000 is taxed at a rate of 35%
Income above $400,000 is taxed at a rate of 39.6%

 

The 2013 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $8,925 is taxed at a rate of 10%
Income $8,925 - $36,250 is taxed at a rate of 15%
Income $36,250 - $73,200 is taxed at a rate of 25%
Income $73,200 - $111,525 is taxed at a rate of 28%
Income $111,525 - $199,175 is taxed at a rate of 33%
Income $199,175 - $225,000 is taxed at a rate of 35%
Income above $225,000 is taxed at a rate of 39.6%

 

The 2013 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $17,850 is taxed at a rate of 10%
Income $17,850 - $72,500 is taxed at a rate of 15%
Income $72,500 - $146,400 is taxed at a rate of 25%
Income $146,400 - $223,050 is taxed at a rate of 28%
Income $223,050 - $398,350 is taxed at a rate of 33%
Income $398,350 - $450,000 is taxed at a rate of 35%
Income above $450,000 is taxed at a rate of 39.6%

 

The 2013 US Income Tax Brackets for those who file as Head of Household

Income $0 - $12,750 is taxed at a rate of 10%
Income $12,750 - $48,600 is taxed at a rate of 15%
Income $48,600 - $125,450 is taxed at a rate of 25%
Income $125,450 - $203,150 is taxed at a rate of 28%
Income $203,150 - $398,350 is taxed at a rate of 33%
Income $398,350 - $425,000 is taxed at a rate of 35%
Income above $425,000 is taxed at a rate of 39.6%

 

2012 Federal Income Tax Rates and Tax Brackets

The 2012 US Income Tax Brackets for those who file as Single

Income $0 - $8,700 is taxed at a rate of 10%
Income $8,700 - $35,350 is taxed at a rate of 15%
Income $35,350 - $85,650 is taxed at a rate of 25%
Income $85,650 - $178,650 is taxed at a rate of 28%
Income $178,650 - $178,650 is taxed at a rate of 33%
Income above $388,350 is taxed at a rate of 35%

 

The 2012 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $8,700 is taxed at a rate of 10%
Income $8,700 - $35,350 is taxed at a rate of 15%
Income $35,350 - $71,350 is taxed at a rate of 25%
Income $71,350 - $108,725 is taxed at a rate of 28%
Income $108,725 - $194,175 is taxed at a rate of 33%
Income above $194,175 is taxed at a rate of 35%

 

The 2012 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $17,400 is taxed at a rate of 10%
Income $17,400 - $70,700 is taxed at a rate of 15%
Income $70,700 - $142,700 is taxed at a rate of 25%
Income $142,700 - $217,450 is taxed at a rate of 28%
Income $217,450 - $388,350 is taxed at a rate of 33%
Income above $388,350 is taxed at a rate of 35%

 

The 2012 US Income Tax Brackets for those who file as Head of Household

Income $0 - $12,400 is taxed at a rate of 10%
Income $12,400 - $47,350 is taxed at a rate of 15%
Income $47,350 - $122,300 is taxed at a rate of 25%
Income $122,300 - $198,050 is taxed at a rate of 28%
Income $198,050 - $388,350 is taxed at a rate of 33%
Income above $388,350 is taxed at a rate of 35%

 

2011 Federal Income Tax Rates and Tax Brackets

The 2011 US Income Tax Brackets for those who file as Single

Income $0 - $8,500 is taxed at a rate of 10%
Income $8,500 - $34,500 is taxed at a rate of 15%
Income $34,500 - $83,600 is taxed at a rate of 25%
Income $83,600 - $174,400 is taxed at a rate of 28%
Income $174,400 - $379,150 is taxed at a rate of 33%
Income above $379,150 is taxed at a rate of 35%

 

The 2011 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $8,500 is taxed at a rate of 10%
Income $8,500 - $34,500 is taxed at a rate of 15%
Income $34,500 - $69,675 is taxed at a rate of 25%
Income $69,675 - $106,150 is taxed at a rate of 28%
Income $106,150 - $189,575 is taxed at a rate of 33%
Income above $189,575 is taxed at a rate of 35%

 

The 2011 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $17,000 is taxed at a rate of 10%
Income $17,000 - $69,000 is taxed at a rate of 15%
Income $69,000 - $139,350 is taxed at a rate of 25%
Income $139,350 - $212,300 is taxed at a rate of 28%
Income $212,300 - $379,150 is taxed at a rate of 33%
Income above $379,150 is taxed at a rate of 35%

 

The 2011 US Income Tax Brackets for those who file as Head of Household

Income $0 - $12,150 is taxed at a rate of 10%
Income $12,150 - $46,250 is taxed at a rate of 15%
Income $46,250 - $119,400 is taxed at a rate of 25%
Income $119,400 - $193,350 is taxed at a rate of 28%
Income $193,350 - $379,150 is taxed at a rate of 33%
Income above $379,150 is taxed at a rate of 35%

 

2010 Federal Income Tax Rates and Tax Brackets

The 2010 US Income Tax Brackets for those who file as Single

Income $0 - $8,375 is taxed at a rate of 10%
Income $8,375 - $34,000 is taxed at a rate of 15%
Income $34,000 - $82,400 is taxed at a rate of 25%
Income $82,400 - $171,850 is taxed at a rate of 28%
Income $171,850 - $373,650 is taxed at a rate of 33%
Income above $373,650 is taxed at a rate of 35%

 

The 2010 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $8,375 is taxed at a rate of 10%
Income $8,375 - $34,000 is taxed at a rate of 15%
Income $34,000 - $68,650 is taxed at a rate of 25%
Income $68,650 - $104,625 is taxed at a rate of 28%
Income $104,625 - $186,825 is taxed at a rate of 33%
Income above $186,825 is taxed at a rate of 35%

 

The 2010 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $16,750 is taxed at a rate of 10%
Income $16,750 - $68,000 is taxed at a rate of 15%
Income $68,000 - $137,300 is taxed at a rate of 25%
Income $137,300 - $209,250 is taxed at a rate of 28%
Income $209,250 - $373,650 is taxed at a rate of 33%
Income above $373,650 is taxed at a rate of 35%

 

The 2010 US Income Tax Brackets for those who file as Head of Household

Income $0 - $11,950 is taxed at a rate of 10%
Income $11,950 - $45,550 is taxed at a rate of 15%
Income $45,550 - $117,650 is taxed at a rate of 25%
Income $117,650 - $190,550 is taxed at a rate of 28%
Income $190,550 - $373,650 is taxed at a rate of 33%
Income above $373,650 is taxed at a rate of 35%

 

2009 Federal Income Tax Rates and Tax Brackets

The 2009 US Income Tax Brackets for those who file as Single

Income $0 - $8,350 is taxed at a rate of 10%
Income $8,350 - $33,950 is taxed at a rate of 15%
Income $33,950 - $82,250 is taxed at a rate of 25%
Income $82,250 - $171,550 is taxed at a rate of 28%
Income $171,550 - $372,950 is taxed at a rate of 33%
Income above $372,950 is taxed at a rate of 35%

 

The 2009 US Income Tax Brackets for those who are Married and file Separately

Income $0 - $8,350 is taxed at a rate of 10%
Income $8,350 - $33,950 is taxed at a rate of 15%
Income $33,950 - $68,525 is taxed at a rate of 25%
Income $68,525 - $104,425 is taxed at a rate of 28%
Income $104,425 - $186,475 is taxed at a rate of 33%
Income above $186,475 is taxed at a rate of 35%

 

The 2009 US Income Tax Brackets for those who are Married and file Jointly

Income $0 - $16,700 is taxed at a rate of 10%
Income $16,700 - $67,900 is taxed at a rate of 15%
Income $67,900 - $137,050 is taxed at a rate of 25%
Income $137,050 - $208,850 is taxed at a rate of 28%
Income $208,850 - $372,950 is taxed at a rate of 33%
Income above $372,950 is taxed at a rate of 35%

 

The 2009 US Income Tax Brackets for those who file as Head of Household

Income $0 - $11,950 is taxed at a rate of 10%
Income $11,950 - $45,500 is taxed at a rate of 15%
Income $45,500 - $117,450 is taxed at a rate of 25%
Income $117,450 - $190,200 is taxed at a rate of 28%
Income $190,200 - $372,950 is taxed at a rate of 33%
Income above $372,950 is taxed at a rate of 35%




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