Federal vs. state vs. local
Federal income tax uses progressive marginal brackets — only the income inside each bracket is taxed at that bracket's rate. Of the 50 states and D.C., 27 use progressive brackets the same way, 15 apply a single flat rate, and nine have no tax on wages at all. Sales tax is a state-and-local affair: 45 states plus D.C. impose a base rate, and most allow counties or cities to add their own. The Income Tax Calculator handles the federal-plus-state stack; Sales Tax Calculator covers the state-plus-local side.
Which tax are you trying to figure out?
Tax is not one thing, and the right tool depends on which of these you mean. This hub is the top of the tree; each branch has its own dedicated page:
- What you owe for the year — federal and state income tax on your total income. Start at Income Tax Calculators, which covers the federal and state stack together and has a per-state page for all 50 states and DC.
- What comes out of each paycheck — a different question with a different answer, because withholding is an estimate your employer remits, not your final liability. That lives in Payroll Calculators.
- Tax on a purchase — state plus local sales tax, which varies by city and often by product category. Use the Sales Tax Calculator or the per-state pages listed above.
- Tax on investment profits — the Capital Gains Tax Calculator handles short- and long-term gains, including the 3.8% Net Investment Income Tax for higher earners. Holding period is the single biggest lever: crossing one year moves you from ordinary rates to 0/15/20%.
- Tax on freelance or business income — the Self-Employment Tax Calculator models Schedule SE, the 15.3% combined Social Security and Medicare tax owed on net earnings, plus the deductible employer-equivalent half and quarterly estimated payments.
- A specific IRS figure for the year — brackets, standard deduction, contribution limits, mileage rate. Those are collected on 2026 Tax Calculators. To compare every state's rates in one table, see state income tax rates. Looking ahead, our 2027 tax brackets are projected from the inflation data the IRS uses, and clearly labeled as projections until the official figures publish in October.
What changed in 2026
Federal brackets and the standard deduction rose with inflation for 2026. The One Big Beautiful Bill Act, signed in July 2025, made the 2017 rates permanent, raised the Child Tax Credit and the cap on the state and local tax deduction, and added deductions for tips, overtime, car-loan interest and people 65 and older that apply from 2025 through 2028. Each calculator in this category states the tax year it uses and lists its sources. For the figures themselves rather than the tools, see 2026 Tax Calculators.
Related categories
Paycheck withholding — what's taken out per paycheck rather than what you owe for the year — lives in Payroll Calculators. Tax-advantaged long-term saving (401(k), IRA, retirement) is under Savings & Investing.
Frequently Asked Questions
What is the difference between marginal and effective tax rate?
Your marginal rate is what the next dollar you earn is taxed at. Your effective rate is total tax divided by total income, and it is lower because the US uses progressive brackets: the first dollars are taxed at 10%, and only income above each threshold is taxed at the higher rate. A single filer in the 24% bracket in 2026 pays about 15% to 19% of gross income in federal income tax. Marginal rate is what matters for decisions about additional income or deductions; effective rate is what matters for budgeting.
Should I take the standard deduction or itemize?
Take whichever is larger. The standard deduction is high enough now that the large majority of filers take it. Itemizing tends to win when you have a mortgage generating substantial interest, significant state and local taxes, or large charitable contributions or medical expenses. Note that state and local tax deductions are capped, which limits how much itemizing helps in high-tax states.
How is self-employment tax different from regular payroll tax?
An employee splits FICA with their employer — 7.65% each. A self-employed person pays both halves, 15.3% total, on net self-employment earnings. The partial offset is that you deduct the employer-equivalent half when computing adjusted gross income, and self-employment tax applies to net earnings after business expenses, not gross revenue. Self-employed filers also generally owe quarterly estimated payments rather than having tax withheld.
How are capital gains taxed differently from income?
Holding period decides it. Assets held one year or less produce short-term gains, taxed as ordinary income at 10% to 37%. Assets held longer than a year qualify for long-term rates of 0%, 15%, or 20% depending on taxable income — substantially lower for most people. Higher earners may also owe the 3.8% Net Investment Income Tax. Crossing the one-year mark by a single day can change the rate materially.
Does my state tax income the same way the federal government does?
No, and the variation is wide. Nine states have no tax on wages, 15 use a single flat rate, and the rest, along with D.C., use progressive brackets with their own thresholds and deductions. Several states are actively cutting rates on multi-year schedules, and some of those cuts are contingent on revenue triggers rather than guaranteed. A handful of cities add local income tax on top.