Income Tax Calculator Estimate 2025 federal (and state) income tax — with deductions, credits, capital gains, and margina...

Income Tax Calculator

Estimate 2025 federal (and state) income tax — with deductions, credits, capital gains, and marginal rate analysis.

Standard

Itemized

Capital Gains

State Tax

W-2 Income ($)

Filing Status Single Married Filing Jointly Head of Household

Dependents

W-2 Income ($)

Mortgage Interest ($)

State & Local Tax ($)

Charitable ($)

Medical ($)

Ordinary Income ($)

Short-Term Gains ($)

Long-Term Gains ($)

State California (1–12.3%) New York (4–10.9%) Texas (0%) Florida (0%) Washington (0% income, 7% capital gains)

AGI ($)

$0

Federal Tax Owed

0.00%

Effective Tax Rate

0.00%

Marginal Tax Rate

$0

Credits Applied

How Your Income Is Taxed

How Marginal Tax Rates Work

Marginal ≠ Effective Tax Rate**:

• Marginal**: Rate on your *next dollar* earned
• Effective**: Total tax ÷ Total income

Example: $85,000 single filer (2025): • $11,925 × 10% = $1,192.50 • ($48,475 − $11,925) × 12% = $4,386 • ($85,000 − $48,475) × 22% = $8,035.50 → **Total tax = $13,614** (but wait — after $15K standard deduction, taxable = $70,000 → **$9,800 tax**) • Marginal rate = **22%** • Effective rate = $9,800 / $85,000 = **11.5%**

✅ Key Insight**: Only income *above* a bracket is taxed at that rate — you never pay 37% on all your income.

Common Tax Mistakes

⚠️ Avoid these errors:

• Missing estimated payments** — if withholding <90% of tax, penalty applies (common for freelancers)
• Overlooking SALT cap** — state + property tax deduction capped at $10,000 (federal)
• Confusing ST vs. LT capital gains** — ST taxed as ordinary income (up to 37%); LT = 0/15/20%
• Not claiming refundable credits** — $1,600/child refundable even if tax = $0

✅ Pro Tips**:

• Max HSA → reduces AGI *and* gives triple tax advantage
• Backdoor Roth → tax-free growth for high earners
• QCD (Qualified Charitable Distribution) → satisfy RMD + charity in one move (70½+)

2025 Federal Tax Benchmarks

Filing Status	Income	Tax	Effective Rate	Marginal
Single	$50,000	$4,400	8.8%	12%
Single	$85,000	$9,800	11.5%	22%
MFJ	$150,000	$18,200	12.1%	22%
MFJ	$300,000	$52,100	17.4%	24%

📉 Capital Gains Brackets (Single)**:

• 0%: AGI ≤ $47,025
• 15%: $47,026 – $518,900
• 20%: > $518,900
• +3.8% NIIT if AGI > $200,000

How to Use This Calculator

➡️ Standard

W-2 income, standard deduction, child credits — most filers.

➡️ Itemized

Mortgage interest, SALT, charity — see if > standard deduction.

➡️ Capital Gains

Stock sales, real estate — separate ST (ordinary) and LT (preferential) rates.

➡️ State Tax

Estimate CA, NY, etc. — includes progressive brackets and caps.

You’ll get:

• Federal tax owed
• Effective vs. marginal rate
• SVG tax bracket waterfall
• Credit and deduction analysis

Note: Uses 2025 IRS brackets, standard deduction ($15K/$30K), and $2,000/child credit.