How US Federal Tax Works
The United States uses a progressive tax system. This means that different portions of your income are taxed at increasingly higher rates as you earn more.
Marginal vs. Effective Rate
Your marginal rate is the tax on your last dollar earned. Your effective rate is the actual percentage of your total income that goes to the IRS after all deductions.
Deductions vs. Credits
Deductions (like the Standard Deduction) reduce the income you're taxed on. Credits (like Child Tax Credit) reduce your actual tax bill dollar-for-dollar.
Terms of Service
The numly2.com Income Tax Calculator provides estimates based on 2024-2026 federal brackets. It now includes FICA estimates (Social Security and Medicare). It does not include state or local taxes or specific legal tax advice.
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