This tool uses federal tax rates for 2025. Key terms include:

Annual Gross Income
Your gross income is the amount you earn before any deductions are taken from your paycheck. Common paycheck deductions include estimated taxes, health insurance premiums, and savings plan contributions.

State Income Tax
Enter your state's income tax rate as a percentage (for example, 5%). If you're unsure, you can look up the average state income tax rate for your state. This calculator uses a flat rate for simplicity. Some states charge different rates based on your income and may have credits or deductions not reflected here, so your actual rate may vary.

Filing Status
Your filing status determines the amount of your "standard" deduction, which is the amount all taxpayers can deduct from gross income. If you are married and file jointly, the standard deduction is doubled.

Deductions
The Standard Deduction is the amount all taxpayers can deduct from gross income. In 2025, that amount is $14,600 for single filers and $29,200 for married filers. Around 90% of all households use this deduction.

On the other hand, if your tax-deductible expenses – such as mortgage interest and state/local taxes – exceed the Standard Deduction amount, it may make sense to choose the itemized option to reduce your taxable income.

Tax-Advantaged Savings
Common tax-advantage savings plans include:

• 401(k) and 403(b) - up to $23,000
• Traditional IRA - up to $7,000
• Health Savings Account (HSA) - up to $4,300 ($8,550 / family)
• Flexible Spending Account (FSA) - up to $3,200
• Other pre-tax payroll deductions offered by your employer

Note that some accounts allow higher contributions if you're over 50 or 55 years old. Enter the total of all tax-deductible savings for the year. Most people can check their paystub or year-end tax form for this information.

Tax Credits
Tax credits can be complex, but common credits include:

• Child Tax Credit - $2,000 per child
• Earned Income Tax Credit - up to $7,830 for 3+ children
• American Opportunity Tax Credit - up to $2,500 per student
• Lifetime Learning Credit - up to $2,000
• Energy credits - up to $2,000
• Saver´s Credit - up to $1,000 (2,000 / family)
• Child & Dependent Care Credit - up to $2,100 (2+ children)

Estimate your total tax credits for the year. Credits directly reduce the amount of tax you owe.

Note that eligibility for some credits is phased out at higher income levels. This tool does not allow for refundable tax credits that result in a tax refund if you did not earn enough income to pay taxes.

Extra Income
Typical extra income includes:

• Bonuses
• Freelance/side gig earnings
• Any other taxable income not already included in gross salary

This tool will estimate the tax on extra income at your highest tax rate, so you can see the true after-tax benefit.

FICA Taxes
FICA taxes and are withheld from your paycheck as an employee.

• Social Security tax: 6.2% of your earned income, up to $168,600 for 2025 Medicare tax: 1.45% of all earned income (no cap)

Note that this calculator assumes employee rates. Those who are self-employed pay double, but half of the higher amount is also tax-deductible.

Please keep in mind that this tool provides estimates only and doesn’t cover more complex scenarios.