USA Income Tax Guide
Everything you need to know about US federal income tax (2026)
Income Tax Basics
The US federal income tax is the primary source of revenue for the federal government. It's a progressive tax system, meaning higher incomes are taxed at higher rates. Most workers have taxes automatically withheld from their paychecks through the W-4 form system.
Who Needs to Pay Federal Income Tax?
You must file a federal tax return if your income exceeds the standard deduction. For 2026, the standard deduction is $15,000 for single filers ($30,000 for married filing jointly).
The US Tax Year
The US tax year runs from January 1 to December 31. Tax returns for the previous year are typically due by April 15 (or the next business day if it falls on a weekend or holiday).
2026 Federal Tax Brackets
The US uses a progressive tax system with seven tax brackets. Your taxable income is divided across these brackets, with each portion taxed at its corresponding rate.
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 10% | $0 - $12,400 | $0 - $24,800 |
| 12% | $12,401 - $50,400 | $24,801 - $100,800 |
| 22% | $50,401 - $105,700 | $100,801 - $211,400 |
| 24% | $105,701 - $201,775 | $211,401 - $403,550 |
| 32% | $201,776 - $256,225 | $403,551 - $512,450 |
| 35% | $256,226 - $640,600 | $512,451 - $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Real-World Examples
$50,000 Income
- Standard deduction: $15,000
- Taxable: $35,000
- Federal Tax: ~$3,700
$85,000 Income
- Standard deduction: $15,000
- Taxable: $70,000
- Federal Tax: ~$9,100
$120,000 Income
- Standard deduction: $15,000
- Taxable: $105,000
- Federal Tax: ~$17,800
Important: These are federal income tax estimates only. They don't include FICA taxes (Social Security and Medicare), state taxes, or any deductions. Use our US Tax Calculator to see your complete take-home pay.
FICA: Social Security & Medicare
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare programs. These are separate from federal income tax and are calculated on your gross income.
2026 FICA Rates
Social Security
- • Employee rate: 6.2% of wages
- • Wage base limit: $184,500 (earnings above this aren't taxed)
- • Maximum employee contribution: $11,439
Medicare
- • Employee rate: 1.45% of all wages
- • Additional Medicare: 0.45% on earnings over $200,000 (single)
What FICA Funds
- • Social Security: Retirement benefits, disability benefits, survivor benefits
- • Medicare: Health insurance for people 65 and older, some younger disabled individuals
State Income Tax
In addition to federal tax, most states impose their own income tax. State tax rates and rules vary significantly by state.
States with No Income Tax
Alaska, Florida, Nevada, New Hampshire (dividends/interest only), South Dakota, Tennessee, Texas, Washington, Wyoming
States with Flat Tax
Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, Utah
States with Graduated Tax
California, New York, New Jersey, Oregon, Minnesota, and most other states use progressive tax brackets similar to the federal system.
Note: Some states allow deductions for contributions to 401(k) plans and IRAs, while others don't. State tax rates range from 0% to over 13%. Our calculator accounts for state-specific rules.
Deductions & Adjustments
Deductions reduce your taxable income, lowering the amount of tax you owe. There are two main types: above-the-line deductions (adjustments) and itemized deductions.
Above-the-Line Deductions (Adjustments)
These reduce your gross income before calculating AGI and are available even if you take the standard deduction:
- • 401(k) contributions: Pre-tax contributions to employer retirement plans (2026 limit: $24,500)
- • Traditional IRA: Deductible contributions if you don't have a workplace plan (2026 limit: $7,500)
- • HSA contributions: Health Savings Account contributions (2026 limit: $4,400 individual, $8,750 family)
- • Student loan interest: Up to $2,500 per year (income limits apply)
- • Self-employment expenses: Business expenses, home office, etc.
Itemized Deductions
If your itemized deductions exceed the standard deduction, you may benefit from itemizing:
- • State and local taxes (SALT): Up to $10,000 per year
- • Mortgage interest: On primary and secondary residences
- • Charitable contributions: Cash and property donations
- • Medical expenses: Exceeding 7.5% of AGI
2026 Standard Deduction
Single
$16,100
Married Filing Jointly
$32,200
Head of Household
$24,150
Tax Credits
Tax credits directly reduce the amount of tax you owe, dollar for dollar. They're more valuable than deductions because they reduce your tax bill rather than just your taxable income.
Child Tax Credit
Up to $2,000 per dependent child under 17. Partially refundable.
Earned Income Tax Credit (EITC)
Refundable credit for low-to-moderate income workers. Amount depends on income and family size.
Education Credits
American Opportunity Credit (up to $2,500) and Lifetime Learning Credit for qualified education expenses.
Clean Vehicle Credit
Up to $7,500 for new electric vehicles meeting domestic production requirements.
Energy Efficient Home Credits
Credits for qualifying energy-efficient improvements to your home.
Calculate Your US Take-Home Pay
Now you understand how US income tax works, use our calculator to see exactly how much you'll take home based on your salary, state, and deductions.
Try the US Tax CalculatorThe information on this page is for general guidance only. Tax rules can change, and individual circumstances vary. For personalized tax advice, please consult a qualified tax professional or visit the official IRS website.