Income Tax Calculator 2024-2025: Estimate Your Take-Home Pay

How Do Federal Tax Brackets Work?

The United States uses a progressive tax system. This means that as your income goes up, you pay a higher tax rate, but only on the income that falls within the higher bracket. Many people mistakenly believe that moving into a higher tax bracket means their entire income is taxed at the higher rate, which is false. Our calculator perfectly models this progressive system.

What is FICA?

FICA stands for the Federal Insurance Contributions Act. It's a mandatory payroll tax that funds Social Security and Medicare. As a standard employee, you pay 6.2% for Social Security and 1.45% for Medicare. If you are a high earner, you may also be subject to an Additional Medicare Tax.