| Taxable Income: | $'+taxableIncome.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Federal Income Tax: | $'+fedTax.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Social Security: | $'+socSec.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Medicare: | $'+medicare.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Total Tax Liability: | $'+totalTax.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Estimated Net Take-Home: | $'+netPay.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
Using the Free Tax Calculator
Our free tax calculator is designed to provide an accurate estimate of your federal tax liability and take-home pay for the 2024 tax year. By entering a few key details about your income and filing status, you can gain immediate clarity on how much of your paycheck goes to the government and how much stays in your pocket.
To get the most accurate results, ensure you have your latest pay stub or annual salary information ready. The calculator accounts for federal income tax, Social Security, and Medicare taxes.
- Annual Gross Income
- Your total yearly earnings before any taxes or deductions are removed. This includes salary, bonuses, and tips.
- Filing Status
- Your legal status (Single, Married Filing Jointly, or Head of Household) which determines your standard deduction and tax brackets.
- Pre-tax Deductions
- Contributions to 401(k) plans, traditional IRAs, or Health Savings Accounts (HSA) that reduce your taxable income.
How It Works
The free tax calculator follows a specific sequence of operations mandated by the IRS. Understanding these steps helps you manage your finances more effectively.
Taxable Income = Gross Income – (Standard Deduction + Pre-tax Contributions)
- Standard Deduction: For 2024, this is $14,600 for individuals and $29,200 for married couples.
- FICA Taxes: Social Security is taxed at 6.2% up to an income cap of $168,600. Medicare is 1.45% with no income cap.
- Progressive Brackets: Federal income tax is not a flat rate. You pay 10% on the first chunk of income, 12% on the next, and so on.
2024 Tax Calculation Example
Example: A single filer earning $75,000 annually with $5,000 in 401(k) contributions.
Step-by-step solution:
- Gross Income: $75,000
- Subtract 401(k): $75,000 – $5,000 = $70,000
- Subtract Standard Deduction: $70,000 – $14,600 = $55,400 (Taxable Income)
- Apply Brackets: 10% on first $11,600 + 12% on next $35,550 + 22% on remaining $8,250
- Federal Tax Total: ~$7,242
- FICA Taxes: $75,000 * 7.65% = $5,737.50
- Take-home Pay: $75,000 – $5,000 – $7,242 – $5,737.50 = $57,020.50
Common Questions
Does this calculator include state taxes?
This specific free tax calculator focuses on federal income tax and FICA. Since state tax rates vary wildly (from 0% in Florida or Texas to over 13% in California), you should subtract your specific state rate from the final net pay estimate.
What is the difference between a tax credit and a deduction?
A deduction reduces the amount of income you are taxed on. A credit is a dollar-for-dollar reduction of the actual tax you owe. Credits are generally more valuable than deductions.
What if I am self-employed?
If you are self-employed, you are responsible for both the employer and employee portions of FICA, totaling 15.3%. This calculator assumes you are a W-2 employee. Self-employed individuals should double the FICA estimate provided here.