Question 1

How do US tax brackets work?

Accepted Answer

The US uses a progressive tax system. Your income is taxed in chunks — each portion falls into a bracket with its own rate. For example, if you're single and earn $60,000 in 2025: the first $11,925 is taxed at 10%, the next chunk ($11,926–$48,475) at 12%, and only the portion above $48,475 is taxed at 22%. Your marginal rate is the rate on your last dollar earned.

Question 2

What is the difference between marginal and effective tax rate?

Accepted Answer

Marginal rate is the rate on your next dollar of income (your top bracket). Effective rate is your total tax divided by total income — it's always lower than your marginal rate because lower brackets are taxed less. For example, you might have a 22% marginal rate but only a 14% effective rate.

Question 3

Does this calculator include state tax or deductions?

Accepted Answer

No. This tool calculates only federal income tax on taxable income (after the standard or itemized deduction). It does not include state income tax, FICA (Social Security and Medicare, ~7.65%), capital gains, or credits. For a full picture, consult a tax professional or full tax software.

Question 4

What are the 2025 federal tax brackets?

Accepted Answer

For 2025 (taxes filed in 2026), single filers: 10% up to $11,925; 12% to $48,475; 22% to $103,350; 24% to $197,300; 32% to $250,525; 35% to $626,350; 37% above. Brackets for married filing jointly are roughly double. Standard deduction for 2025: $15,000 single, $30,000 married jointly.