Income Tax Calculator

Calculate US federal income tax and UK income tax with brackets, deductions, FICA, National Insurance, and take-home pay.

Finance

Tax year & scope

US: 2025 federal brackets, standard deductions, and FICA parameters as commonly published.UK: 2025/26-style bands and NI thresholds (illustrative). Excludes many credits, AMT, local taxes, and individual circumstances. Not tax advice—confirm with a qualified professional.

Annual gross income

Filing status

State income tax rate (%)0% for TX, FL, WA, NV, etc.

Itemize deductions

Standard deduction: $15,000.00

Take-home pay

$63,933.50

$5,327.79/mo

Total tax

$21,066.50

$1,755.54/mo

Effective rate

24.8%

Marginal: 22%

$21,066.50

Total tax

Federal: $10,314.00FICA: $6,502.50State: $4,250.00

Breakdown

Gross income$85,000.00

Deduction (standard)($15,000.00)

Taxable income$70,000.00

Federal income tax$10,314.00

Social Security (6.2%)$5,270.00

Medicare (1.45%+)$1,232.50

State tax (5%)$4,250.00

Total tax$21,066.50

Take-home pay$63,933.50

Tax bracket	Taxable amount	Tax
10%	$11,925.00	$1,192.50
12%	$36,550.00	$4,386.00
22%	$21,525.00	$4,735.50
Total federal	$70,000.00	$10,314.00

Period	Gross	Tax	Take-home
Annual	$85,000.00	$21,066.50	$63,933.50
Monthly	$7,083.33	$1,755.54	$5,327.79
Bi-weekly	$3,269.23	$810.25	$2,458.98
Weekly	$1,634.62	$405.13	$1,229.49
Daily	$326.92	$81.03	$245.90
Hourly (40h/wk)	$40.87	$10.13	$30.74

US calculations use 2025 federal tax brackets, standard deductions, and FICA rates. UK calculations use 2025/26 income tax bands, personal allowance (with taper above £100k), and Class 1 employee NI. This is an estimate — consult a tax professional for your specific situation.

What is Income Tax Calculator?

An income tax calculator estimates your tax liability and take-home pay based on your gross income, filing status, and applicable tax rules. Understanding your tax burden is essential for financial planning, salary negotiations, and budgeting. Our calculator supports both US federal tax (with 2025 brackets, standard/itemized deductions, FICA, and state tax) and UK income tax (with 2025/26 bands, Personal Allowance tapering, and National Insurance). Results include a detailed bracket breakdown, donut chart, and pay frequency table showing your take-home across annual, monthly, bi-weekly, weekly, daily, and hourly views.

How It Works

Select your country (US or UK), enter your annual gross income, and configure applicable options. For the US, choose your filing status and enter your state tax rate. The calculator applies the standard deduction (or your itemized amount), computes tax through each progressive bracket, adds FICA and state tax, and shows your total tax and take-home pay. For the UK, it applies the Personal Allowance, computes income tax through the Basic, Higher, and Additional bands, and adds National Insurance.

Formula

US: Taxable Income = Gross − Standard Deduction
Federal Tax = Progressive brackets (10% to 37%)
FICA = SS (6.2% up to $176,100) + Medicare (1.45% + 0.9% above threshold)
Total Tax = Federal + FICA + State

UK: Taxable Income = Gross − Personal Allowance
Income Tax = Progressive bands (20%, 40%, 45%)
NI = 8% on £12,570–£50,270 + 2% above

Formula Explained

Both systems use progressive taxation. Your income fills lower brackets first, then higher ones. Only the portion of income within each bracket is taxed at that rate. The US standard deduction removes a fixed amount before brackets apply. FICA taxes fund Social Security and Medicare and are calculated on gross income (not taxable income). In the UK, the Personal Allowance tapers above £100,000, creating an effective 60% marginal rate between £100,000 and £125,140.

Example

US: $85,000 salary, Single filing, 5% state tax Standard deduction: $15,000 Taxable income: $70,000 Federal tax: $10,837 (brackets: 10%, 12%, 22%) SS: $5,270, Medicare: $1,232 State: $4,250 Total tax: $21,590 (25.4% effective) Take-home: $63,410 ($5,284/mo) UK: £50,000 salary Personal Allowance: £12,570 Income tax: £7,486 NI: £3,016 Total: £10,502 (21.0% effective) Take-home: £39,498 (£3,292/mo)

Tips & Best Practices

✓Your effective tax rate is always lower than your marginal rate — do not assume the highest bracket applies to all income.
✓Consider maxing out 401k/pension contributions to reduce taxable income.
✓If your itemized deductions exceed the standard deduction, switch to itemized for lower tax.
✓States with no income tax (TX, FL, WA, etc.) can save thousands per year.
✓UK earners between £100k–£125k face a hidden 60% marginal rate due to Personal Allowance taper.

Common Use Cases

•Estimating take-home pay for salary negotiations
•Comparing tax burden between US states
•Planning tax-efficient retirement contributions
•Understanding the impact of a raise on net pay
•Comparing US and UK tax systems for international relocation

Frequently Asked Questions

US federal income tax uses progressive brackets. Your income is taxed at increasing rates as it rises through each bracket. For 2025, rates range from 10% to 37%. You subtract the standard deduction ($15,000 single, $30,000 married) before applying brackets. FICA taxes (Social Security 6.2% + Medicare 1.45%) are added separately on gross income.

Marginal rate is the rate on your last dollar earned (your highest bracket). Effective rate is total tax divided by total income — it is always lower than marginal because lower brackets are taxed at lower rates. Someone in the 24% bracket typically has an effective rate of 15-18%.

UK income tax uses the Personal Allowance (£12,570 tax-free) plus three bands: Basic (20%), Higher (40%), and Additional (45%). The allowance tapers by £1 for every £2 earned above £100,000. National Insurance is added: 8% on earnings £12,570-£50,270 and 2% above that (2025/26 rates).

Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire (dividends/interest only), South Dakota, Tennessee, Texas, Washington, and Wyoming. Set the state tax rate to 0% for these states.

This calculator uses official 2025 US federal brackets, standard deductions, and FICA rates, and 2025/26 UK tax bands. However, individual situations vary — itemized deductions, tax credits (child tax credit, EITC), self-employment tax, and other factors may change your actual liability. Consult a tax professional for your specific situation.