Income Tax Calculator

Estimate your income tax and what you keep. This free income tax calculator shows your taxable income, tax owed, after-tax income and effective rate from your income, deductions and tax rate.

Your income
$
$
%
After-tax income
— /yr
Enter income and your tax rate
Taxable income
—
Income tax
—
Monthly after-tax
—
Effective rate
—

Estimate only. You supply the effective tax rate, since real brackets depend on your country, tax year and filing status.

How Income Tax Calculator Works

Curious what you’d actually take home from a given salary? This free income tax calculator applies an effective tax rate you supply to your gross income and deductions to estimate your taxable income, tax owed, and after-tax income.

Formula: Taxable Income = max(Gross Income − Deductions, 0). Income Tax = Taxable Income × Effective Rate ÷ 100. After-Tax Income = Gross Income − Income Tax. Rather than modeling tiered tax brackets, which vary by country, tax year, and filing status, this calculator applies a single effective rate you enter directly to your taxable income.

  • Annual gross income — your total income before any taxes or deductions
  • Deductions / allowances — optional amount subtracted from gross income before tax is applied
  • Effective tax rate — the overall percentage of your taxable income you expect to pay in tax

Example Scenarios

Gross IncomeDeductionsEffective RateTaxable IncomeIncome TaxAfter-Tax Income
$60,000$10,00015%$50,000$7,500$52,500
$80,000$020%$80,000$16,000$64,000
$45,000$5,00012%$40,000$4,800$40,200
$120,000$20,00024%$100,000$24,000$96,000
$35,000$010%$35,000$3,500$31,500

Note: these examples use round, illustrative effective tax rates to demonstrate the math clearly — they are not real current tax brackets or thresholds, since actual rates depend on your country, tax year, income level, and filing status.

Income Tax Calculator FAQ

Why do I need to enter my own tax rate instead of the calculator finding it automatically?Real tax systems use tiered brackets, credits, and rules that differ by country, tax year, and filing status, so a single generic formula can’t accurately reproduce them. Entering your own effective rate — the overall percentage you actually pay — keeps the estimate honest and lets you use the calculator anywhere.
What’s the difference between taxable income and gross income?Gross income is everything you earn before any deductions. Taxable income is what’s left after subtracting deductions or allowances, and it’s the amount your effective tax rate is actually applied to in this calculator.
Where do I find my effective tax rate?Your effective rate is your total tax paid divided by your total income, which you can calculate from a prior tax return or pay stub, or estimate using an official tax authority’s rate schedule or withholding tables for your situation.
Does this calculator include state, local, or payroll taxes?Only if you build them into the effective rate you enter. Since this calculator uses one combined rate, you can include state, local, and other applicable taxes by adding their effective impact into the rate field yourself.
Can I use this to estimate take-home pay from a paycheck?It gives a rough annual estimate, but a dedicated paycheck calculator will better capture per-period withholding, pre-tax benefits, and payroll-specific deductions that this simplified tool doesn’t model.
Why is my effective rate lower than my top tax bracket?In a bracketed system, only income within each bracket is taxed at that bracket’s rate — lower portions of your income are taxed at lower rates first. Your effective rate blends all those brackets together, so it’s typically lower than the top rate that applies to your last dollar earned.

Related Calculators

Want to see this play out per paycheck instead of per year? Try the paycheck calculator or the take-home pay calculator, and if you’re self-employed, the self-employment tax calculator covers the additional taxes that apply to freelance and contract income.

Use this free income tax calculator to estimate your tax and after-tax income. Enter your gross income, any deductions and your effective tax rate to see your taxable income, tax owed and what you keep.

What this income tax calculator shows you

An income tax calculator estimates how much income tax you’ll owe and your after-tax income. Enter your annual income, deductions and tax rate, and it returns your taxable income, income tax, after-tax (net) income and effective tax rate.

Important: income tax is charged in brackets that differ by country, tax year and filing status, so no single formula fits everyone. This calculator uses an effective tax rate you enter to stay accurate worldwide. To find yours, divide the total income tax on last year’s return by your gross income.

How to use the income tax calculator

  1. Enter your annual gross income. Your total income before tax.
  2. Add deductions or allowances (optional). The standard deduction or personal allowance reduces taxable income.
  3. Enter your effective tax rate. Your overall percentage of income paid in tax.
  4. Read your result. Taxable income, tax and after-tax income update instantly.

Marginal vs effective tax rate

Your marginal rate is the rate on your last dollar of income — the top bracket you reach. Your effective rate is the average rate across all your income, which is lower because earlier brackets are taxed less. This calculator uses the effective rate, the best single number for estimating total tax.

How income tax is calculated

Taxable income = Gross income − Deductions
Income tax = Taxable income × Effective rate
After-tax income = Gross income − Income tax

Deductions and allowances lower the income that’s actually taxed, which is why two people with the same salary can owe different amounts.

Income tax terms glossary

Term What it means
Gross income Your total income before tax and deductions.
Taxable income Income left after deductions and allowances.
Deduction / allowance An amount subtracted from income before tax applies.
Marginal rate The tax rate on your highest band of income.
Effective rate Your average tax rate across all income.

Income Tax Calculator FAQ

How do I estimate my income tax?

Subtract deductions from your gross income to get taxable income, then multiply by your effective tax rate. For $60,000 income with a $13,850 deduction at a 15% rate on taxable income, the tax is about $6,923.

What is the difference between marginal and effective tax rate?

Your marginal rate is the rate on your last dollar earned — your top bracket. Your effective rate is the average rate across all your income, which is lower. This calculator uses the effective rate.

Why do I have to enter my own tax rate?

Income tax brackets differ by country, tax year and filing status, so no single formula works everywhere. Entering your effective rate — last year's total tax divided by your gross income — keeps the estimate accurate for you.

What are deductions and allowances?

They're amounts subtracted from your income before tax is applied, such as the standard deduction or a personal allowance. They lower your taxable income and therefore your tax.

Does this calculator include payroll or social security taxes?

No. It estimates income tax only. Payroll taxes like social security and Medicare are separate — a paycheck calculator that uses your combined rate captures those.

Is the income tax calculator free to use?

Yes, this income tax calculator is completely free, needs no sign-up, and gives instant results directly in your browser.

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