Income Tax Calculator 2025

Understanding Income Tax

Federal income tax is progressive, meaning higher income levels are taxed at higher rates. Understanding how tax brackets work can help you plan better.

Key Concepts

• Marginal Tax Rate: The rate applied to your last dollar of income
• Effective Tax Rate: Your average tax rate across all income
• Taxable Income: After deductions and exemptions
• Tax Credits: Direct reduction of tax liability

2025 Standard Deductions

Updated per IRS Revenue Procedure 2025-32 (Oct 9, 2025) reflecting the One Big Beautiful Bill Act (OBBBA).

• Single: $15,750
• Married Filing Jointly: $31,500
• Married Filing Separately: $15,750
• Head of Household: $23,625

2025 Tax Brackets (Single)

• 10%: Up to $11,925
• 12%: $11,926 - $48,475
• 22%: $48,476 - $103,350
• 24%: $103,351 - $197,300
• 32%: $197,301 - $250,525
• 35%: $250,526 - $626,350
• 37%: $626,351+

Brackets vary by filing status. Calculator includes all 2023-2025 rates.

Common Deductions

• Mortgage interest
• State and local taxes (up to $10,000)
• Charitable contributions
• Medical expenses (over 7.5% of AGI)

Tax Calculation

Tax = (Taxable Income × Bracket Rate) - Base Amount

Tax is calculated progressively on income within each bracket.

Tax Planning Tips

• Retirement accounts: Contribute to reduce taxable income
• Tax-loss harvesting: Consider for investments
• Tax credits: Maximize available credits
• Withholding: Adjust to avoid large refunds or payments
• Timing: Consider timing of income and deductions

This calculator provides estimates only. Tax laws are complex and subject to change. Consult with a tax professional for personalized advice.