US Salary Tax Calculator

Our calculator provides estimates within 2-3% of actual tax liability for most W-2 employees. For complex situations with multiple income streams, significant investments, or business income, consult a tax professional.

State tax systems differ dramatically. While nine states have no income tax, California’s top rate reaches 13.3%, and some states have flat rates while others use progressive brackets similar to the federal system.

Yes, the IRS released final 2025 inflation-adjusted brackets in Revenue Procedure 2024-29. These reflect a 3.5% increase from 2024 amounts due to inflation.

The credit remains $2,000 per qualifying child under 17, with up to $1,600 refundable. The phase-out begins at $200,000 for single filers and $400,000 for married couples.

The calculator doesn’t account for local taxes, the Alternative Minimum Tax, education credits, the Earned Income Tax Credit, or itemized deductions beyond the standard deduction.

The US uses a progressive tax system where different portions of your income are taxed at different rates. Your effective rate represents the average tax across all your income, while your tax bracket only applies to your highest-earning dollars.

Review your withholding whenever you experience major life changes (marriage, children, job change, significant income fluctuation) or at least annually during open enrollment.

Yes, strategies include maximizing retirement contributions, using Health Savings Accounts, charitable giving, and tax-loss harvesting on investments.