Income Taxes

Your income in the U.S. is taxed by the federal government, state government (some states do not tax income) and some local governments.

Taxes are complicated to calculate. You need to factor your income, your dependents, your 401(k) Contributions, IRA Contributions, Itemized Deductions, etc.

This tool will give you an estimate of the taxes you'll owe the IRS, but consult a professional for more accurate numbers.

Tax Estimator

2020 Your Income Taxes Breakdown

Income: $34,000

Tax Type

Marginal Tax Rate

Effective Tax Rate

Taxes

Federal 12 % 7.04 % $2,394.50
FICA 7.65 % 7.65 % $2,601.00
State 5.75 % 4.23 % $1,438.75
Total Income Taxes 18.92 % $6,434.25
Income After Taxes $27,565.75
* Calculations are estimates and are provided by taxee.io

2020 Federal Income Tax Brackets


The Internal Revenue Service (IRS) is the largest source of revenue for the United States government. All americans (with fex exceptions) are required to file a tax return.

Tax rates range from 10% to 37% and are calculated in a progressive manner, meaning, higher income levels pay higher tax rates. These are marginal tax rates and they are not applied to the total income, but only to the income within that range.

Tax brackets will vary depending on your filing status: Single, Married Jointly, Married Separately or Head of Household

As you probably imagined, calculating your tax liability isn't as simple. This bracked only applies to your taxable income, which is different than your total income (gross income).

Taxable Income

Rate

$0 - $9,875 10 %
$9,875 - $40,125 12 %
$40,125 - $85,525 22 %
$85,525 - $163,300 24 %
$163,300 - $207,350 32 %
$207,350 - $510,300 35 %
$510,300 + 37 %

Taxable Income

Rate

$0 - $19,750 10 %
$19,750 - $80,250 12 %
$80,250 - $171,050 22 %
$171,050 - $326,600 24 %
$326,600 - $414,700 32 %
$414,700 - $622,050 35 %
$622,050 + 37 %

Taxable Income

Rate

$0 - $9,875 10 %
$9,875 - $40,125 12 %
$40,125 - $85,525 22 %
$85,525 - $163,300 24 %
$163,300 - $207,350 32 %
$207,350 - $510,300 35 %
$510,300 + 37 %

Taxable Income

Rate

$0 - $19,750 10 %
$19,750 - $80,250 12 %
$80,250 - $171,050 22 %
$171,050 - $326,600 24 %
$326,600 - $414,700 32 %
$414,700 - $622,050 35 %
$622,050 + 37 %

* Data provided by taxee.io

2020 Standard Deductions

To calculate your taxable income, you start with gross income, make some adjustments to arrive at your adjusted gross income (AGI). From there, you can subtract any deductions that you may qualify for (itemized or standard).

While some taxpayers choose to itemize their deductions, but most of them claim the standard deduction, which will vary depending on your filing status.

Filing Status

Standard Deduction Amount

Standard Deduction (Single) $12,400
Standard Deduction (Married) $24,800
Standard Deduction (Married Filing Separately) $12,400
Standard Deduction (Head of Household) $18,650

* Data provided by taxee.io

2020 State Income Tax Brackets


Many States have their own income tax, which is collected in addition to the federal taxes. You are required to file a separate state tax return, since their rules are different from the federal government rules.

Taxable Income

Rate

$0 - $3,000 2 %
$3,000 - $5,000 3 %
$5,000 - $17,000 5 %
$17,000 + 5.75 %

Taxable Income

Rate

$0 - $3,000 2 %
$3,000 - $5,000 3 %
$5,000 - $17,000 5 %
$17,000 + 5.75 %

Taxable Income

Rate

$0 - $3,000 2 %
$3,000 - $5,000 3 %
$5,000 - $17,000 5 %
$17,000 + 5.75 %

Taxable Income

Rate

$0 - $3,000 2 %
$3,000 - $5,000 3 %
$5,000 - $17,000 5 %
$17,000 + 5.75 %

* Data provided by taxee.io