TALLIVOMethodology
How the Income Tax Calculator works
How Tallivo estimates your 2026 federal income tax using progressive brackets, deductions, and marginal rates.
The formula
tax = Σ (income within each bracket × that bracket's rate)
Step by step
- Taxable income = gross income − pre-tax adjustments (401(k), HSA) − deduction (the larger of your standard or itemized deduction).
- The 2026 standard deduction is $16,100 (single / MFS), $32,200 (married filing jointly), or $24,150 (head of household), per IRS Rev. Proc. 2025-32 (reflecting the One Big Beautiful Bill Act).
- Taxable income is sliced across the 2026 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).
Assumptions & limitations
- 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.
Sources
Reviewed and updated for the 2026 tax year. Figures are planning estimates, not a loan offer — this is not financial advice.
Think one of these figures is wrong? Tell us and we'll check it — we verify against the primary source, not aggregator tables. How we build and check every calculator is documented in our editorial policy.