Income Tax Calculator
Estimate your income tax liability and take-home pay in seconds with this free tax calculator. Select your country, enter your gross income and filing status, and instantly see your effective tax rate, marginal rate, and a detailed bracket-by-bracket breakdown. The calculator supports 8 countries including the US, UK, Canada, Australia, Nigeria, India, Germany, and South Africa. All calculations happen in your browser with no data stored or sent anywhere. No signup required.
Income Details
Deductions
Standard Deduction
$14,600
Federal income tax only. State and local taxes not included. FICA calculated on gross income.
How to Use the Tax Estimator
Select Your Country
Choose from 8 supported countries: United States, United Kingdom, Canada, Australia, Nigeria, India, Germany, or South Africa. Tax brackets, deductions, and social security contributions update automatically.
Enter Your Gross Annual Income
Type your total yearly income before any taxes or deductions. The currency symbol adjusts based on your selected country. Include all sources of employment or self-employment income.
Choose Your Filing Status and Deductions
Select your filing status if your country has multiple options (e.g., Single or Married in the US). The standard deduction applies by default, or switch to itemized deductions for more precision. Toggle on advanced options for retirement contributions and tax credits.
Click Calculate Tax
Press the Calculate Tax button to see your results instantly. The calculator shows your take-home pay, total tax, effective rate, marginal rate, and a detailed bracket-by-bracket breakdown.
Review Bracket Breakdown and Paycheck Estimates
Explore the tax bracket visualization to see how each portion of your income is taxed. Switch between annual, monthly, bi-weekly, and weekly views to understand your take-home pay on any schedule.
Understanding Income Tax
How Progressive Tax Systems Work
Most countries use a progressive tax system where higher income is taxed at higher rates. A common misconception is that moving into a higher tax bracket means all your income is taxed at the higher rate. In reality, only the income within each bracket is taxed at that bracket's rate. For example, a single filer in the US earning $85,000 pays 10% on the first $11,600, 12% on income from $11,601 to $47,150, and 22% on income from $47,151 to $85,000. The resulting effective rate of about 20% is significantly lower than the 22% marginal rate.
Effective Rate = Total Tax ÷ Gross Income × 100
Always lower than your marginal (highest bracket) rate
Deductions vs. Credits
Tax deductions and credits both reduce your tax burden but work differently. A deduction reduces your taxable income: a $5,000 deduction at a 22% marginal rate saves you $1,100. A credit reduces your actual tax bill dollar-for-dollar: a $1,000 credit saves exactly $1,000 regardless of your bracket. For this reason, credits are generally more valuable. Common deductions include retirement contributions (401(k), IRA, pension), student loan interest, and mortgage interest. Common credits include the Earned Income Tax Credit, Child Tax Credit, and education credits in the US.
Social Security and Payroll Taxes
Beyond income tax, most countries impose additional contributions for social programs. In the US, FICA taxes fund Social Security (6.2% up to $168,600) and Medicare (1.45% with no cap). The UK has National Insurance Contributions (NICs). Canada collects CPP and EI premiums. These are calculated on gross income, not taxable income, which is why your total tax rate can be notably higher than your income tax rate alone. Self-employed individuals typically pay both the employer and employee share of these contributions, making self-employment tax a significant consideration for freelancers and independent contractors.
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Frequently Asked Questions
Disclaimer: This tool is provided for informational and educational purposes only. It does not constitute financial, tax, investment, or legal advice. Results are estimates based on the inputs you provide and may not reflect actual financial outcomes. Always consult a qualified financial professional before making financial decisions.