Income Tax Calculator 2025
Calculate your 2025 federal income tax liability, effective tax rate, and estimate your tax refund or amount owed. 2025 rates updated per IRS Revenue Procedure 2025-32 (Oct 9, 2025).
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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.
Tax Calculation Results
Tax Brackets Applied
Complete the form above to see which tax brackets were applied to your income.
Comparison with Previous Year
Complete the form above to see how your current tax situation compares to previous years.
Tax Planning Tips
Complete the form above to receive personalized tax planning recommendations.
Frequently Asked Questions (FAQ)
What is the difference between Marginal and Effective Tax Rate? ▼
Your Marginal Tax Rate is the tax percentage applied to your last dollar earned (your top bracket). Your Effective Tax Rate is the average percentage you pay on your total income after all deductions and brackets are applied. The effective rate is almost always lower than the marginal rate.
Should I take the Standard Deduction or Itemize? ▼
You should generally choose whichever deduction is larger. Most taxpayers (about 90%) take the Standard Deduction because it's simpler and typically higher than their total itemizable expenses (like mortgage interest, state taxes, and charity).
Does moving to a higher tax bracket mean I earn less money? ▼
No! This is a common myth. Tax brackets are progressive. Moving into a higher bracket only means that the income above that threshold is taxed at the higher rate. Your previous income is still taxed at the lower rates. Earning more money always results in more take-home pay.