United States Tax Calculator 2026

The US uses a progressive federal income tax system with seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction for single filers is $16,100 ($32,200 for married filing jointly). Only taxable income above the standard deduction is taxed. Brackets were made permanent by the One Big Beautiful Bill Act (OBBBA) signed in July 2025, with annual inflation adjustments. The top 37% rate applies to income above $640,600 for single filers.

The US uses the Substantial Presence Test to determine tax residency. You become a tax resident if you are physically present in the US for at least 31 days in the current year AND 183 days over a 3-year weighted period (100% of current year days + 1/3 of prior year + 1/6 of year before). Tax residents pay US federal income tax on worldwide income. Non-residents are generally only taxed on US-source income. A Closer Connection Exception may apply if you maintain a tax home abroad.

Employees pay 7.65% total FICA taxes: 6.2% for Social Security on the first $184,500 of wages, and 1.45% for Medicare on all wages with no cap. An additional 0.9% Medicare tax applies to wages above $200,000 ($250,000 for joint filers). Employers match the 6.2% Social Security and 1.45% Medicare. Self-employed pay both halves (15.3% total) but can deduct the employer portion.

The standard deduction for 2026 is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household. Seniors 65+ get an additional $2,050 (single) or $1,650 (married). A new senior deduction of $6,000 per qualifying taxpayer is available, phasing out for higher incomes. Most taxpayers take the standard deduction rather than itemizing.

Key deductions include: standard deduction ($16,100 single/$32,200 joint), or itemized deductions including mortgage interest, state and local taxes (SALT, capped at $40,400 in 2026), charitable donations (up to $1,000 for non-itemizers in 2026), medical expenses above 7.5% of AGI. Above-the-line deductions include 401(k) contributions (up to $24,500), IRA contributions, HSA contributions ($4,400 single/$8,750 family), student loan interest ($2,500 max), and self-employment tax deduction.

The tax year is the calendar year (January 1 – December 31). Federal tax returns for 2026 are due April 15, 2027. You can request an automatic 6-month extension to October 15, 2027 using Form 4868, but taxes owed must still be paid by April 15. Self-employed with quarterly estimated taxes must pay by April 15, June 15, September 15, and January 15. State filing deadlines vary by state.

The IRS treats crypto as property. Selling, trading, or spending crypto triggers capital gains tax. Short-term gains (held ≤1 year) are taxed as ordinary income (10-37%). Long-term gains (held >1 year) are taxed at 0%, 15%, or 20% depending on income. Earning crypto through mining, staking, or airdrops is taxed as ordinary income at fair market value when received. Starting 2026, exchanges must issue Form 1099-DA to report transactions to the IRS.

Short-term capital gains (assets held ≤1 year) are taxed at ordinary income rates (10-37%). Long-term gains (>1 year) are taxed at 0% (taxable income up to $49,450 single), 15% (up to $545,500 single), or 20% above that. Collectibles are taxed at up to 28%. A 3.8% Net Investment Income Tax (NIIT) applies to investment income for individuals earning above $200,000 ($250,000 joint). Qualified dividends follow long-term capital gains rates.

The US has a federal estate tax on assets exceeding $15,000,000 per individual in 2026 (effectively $30 million for married couples). The top estate tax rate is 40%. There is no federal wealth tax. Gift tax applies to transfers above $19,000 per recipient per year, counting against the lifetime exclusion. Some states impose separate inheritance or estate taxes with lower thresholds. There is no federal inheritance tax paid by beneficiaries.

The US has no federal VAT or sales tax. Sales taxes are imposed by states and localities, varying widely: from 0% (Oregon, Montana, Delaware, New Hampshire) to over 10% combined in some areas. Average combined state and local rate is approximately 7%. Five states have no sales tax. Most states exempt groceries and medications. Rates and exemptions differ significantly by jurisdiction.