How the Income Tax Calculator works

How Tallivo estimates your 2025 federal income tax using progressive brackets, deductions, and marginal rates.

The formula

tax = Σ (income within each bracket × that bracket's rate)

Taxable income = gross income − pre-tax adjustments (401(k), HSA) − deduction (the larger of your standard or itemized deduction).
The 2025 standard deduction is $15,750 (single / MFS), $31,500 (married filing jointly), or $23,625 (head of household) — raised retroactively for 2025 by the One Big Beautiful Bill Act (July 2025).
Taxable income is sliced across the 2025 brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and each slice is taxed at its own rate.
Effective rate = total tax ÷ gross income. Marginal rate = the rate on your last dollar (your top bracket).

Federal tax only — no state or local income tax.
Ordinary income only; long-term capital gains and qualified dividends use separate rates (see the crypto tax calculator).
No tax credits (Child Tax Credit, EITC, education, etc.) are applied — these can significantly reduce actual tax owed.

Reviewed and updated for the 2025 tax year. Figures are planning estimates, not a loan offer — this is not financial advice.