💡 AI Insight: Based on 2026 standard deduction ($32,200 for married filing jointly) and updated brackets, increasing 401(k) reduces taxable income.
⏱️ Overtime/Bonus Impact : Extra $1,000 → after‑tax increase $0
🗺️ State Tax Showdown (2026)
CA
$0
After‑tax take‑home
TX
$0
After‑tax take‑home
Yearly difference: $0
📅 5‑year cumulative difference: $0
🧑💼 W2 Employee vs 1099 Contractor · 2026 Precision
🔹 W2 Employee Take‑home$0
🔸 1099 Contractor Take‑home$0
Self‑Employment Tax (15.3%)$0
QBI 20% Deduction$0
1099 Adjusted Taxable Income$0
📈 Capital Gains & Retirement Strategies (2026)
Capital Gains Tax Rate0%
Tax Due$0
🏦 Extra $5,000 401(k) contribution saves approx.$0
2026 0% LTCG bracket: single ≤ $49,450 / married ≤ $98,900.
🏠 Property Tax & Refund Estimator (2026)
🏷️ Annual Property Tax: $0
Current Federal Liability: $0 → Estimated Refund/Tax due $0
🌐 FEIE (Foreign Earned Income) & Quarterly Taxes
Below exclusion limit → Foreign income tax‑free (Federal)
Click above for estimated quarterly tax
How to use this tax calculator responsibly
This tool is designed for educational planning. It helps you compare estimated federal income tax, state income tax, payroll tax, self-employment tax, child tax credit effects, retirement contributions, and after-tax income. It is useful for early budgeting, comparing employment options, and understanding how different inputs affect your estimated take-home pay.
Important: This website does not provide legal, tax, accounting, or financial advice. Tax rules change, personal situations vary, and final liability depends on official forms, IRS guidance, state rules, deductions, credits, phaseouts, and professional review. Always verify important decisions with the IRS, your state tax agency, or a qualified tax professional.
What the calculator estimates
Approximate federal income tax after filing status and standard deduction inputs.
Payroll taxes such as Social Security and Medicare for wage income.
Additional self-employment tax impact for freelance or side-hustle income.
State income tax differences for selected states.
Estimated impact of retirement contributions and child tax credit inputs.
Why estimates may differ from your final tax return
Your actual tax return may include itemized deductions, tax credits, health insurance marketplace credits, student loan interest, business expenses, depreciation, retirement plan limits, AMT, NIIT, local taxes, withholding, penalties, and state-specific rules. Treat the result as a planning estimate, not a final filing number.
Basic tax concepts behind the calculator
Marginal tax rate vs effective tax rate
Your marginal tax rate is the rate applied to the next dollar of taxable income. Your effective tax rate is total tax divided by total income. A higher marginal bracket does not mean all of your income is taxed at that rate.
Effective tax rate = total estimated tax / total income
W-2 vs 1099 income
W-2 employees usually split Social Security and Medicare taxes with their employer. Independent contractors generally pay self-employment tax, but may also deduct ordinary and necessary business expenses. This difference is one reason a contractor rate needs to be higher than an employee salary to produce similar take-home income.
Retirement contributions
Traditional retirement contributions can reduce taxable income in the current year, while Roth contributions usually do not reduce current taxable income. The best choice depends on your current tax bracket, future expectations, employer plan, and cash-flow needs.
Tax learning center
These guides add context to the calculator and help visitors understand common tax planning decisions before relying on the numbers.
What is the effective tax rate and how is it calculated? +
Your effective tax rate is the total tax you pay (federal + state + FICA + self-employment tax) divided by your total income, expressed as a percentage. It gives a realistic picture of your overall tax burden.
What are the 2026 federal tax brackets and standard deduction? +
For 2026, the standard deduction is $16,100 for singles, $32,200 for married couples filing jointly, and $24,150 for heads of household. Tax brackets range from 10% to 37%, with income thresholds adjusted for inflation.
How does moving from California to Texas affect my after-tax income? +
Texas has no state income tax, while California has a top marginal rate of 13.3%. For a $120,000 salary, the annual difference in take-home pay can exceed $10,000, making Texas significantly more tax-friendly for high earners.
Should I work as a W2 employee or 1099 contractor? +
W2 employees pay half of FICA (7.65%) with employer paying the other half. 1099 contractors pay the full 15.3% self-employment tax but can deduct business expenses and claim the QBI 20% deduction. The better choice depends on your income level, expenses, and benefits.
How does contributing to a 401(k) reduce my taxes? +
Traditional 401(k) contributions lower your taxable income for the year. For example, if you are in the 22% bracket, a $5,000 contribution saves you about $1,100 in federal income tax. Our calculator shows the exact savings based on your income.
What is the capital gains tax rate for 2026? +
Long-term capital gains rates are 0% for taxable income up to $49,450 (single) or $98,900 (married), 15% for income up to $518,900, and 20% above that. Short-term gains are taxed as ordinary income.
Do I have to pay quarterly taxes for my side hustle? +
If you expect to owe $1,000 or more in self-employment tax or additional income tax, the IRS requires estimated quarterly payments. Use our calculator to estimate your quarterly obligation and avoid penalties.
How does the Child Tax Credit work in 2026? +
For 2026, the Child Tax Credit is $2,200 per qualifying child under age 17. The credit reduces your federal tax liability dollar-for-dollar and is partially refundable. Our calculator automatically applies it based on the number of children.