Income Tax Calculator
Calculate your federal income tax for 2023 based on your filing status and income
Tax Information
For 2023, the standard deduction amounts are:
- Single: $13,850
- Married Filing Jointly: $27,700
- Head of Household: $20,800
Tax Breakdown
Tax Bracket Breakdown
| Rate | Bracket | Tax in Bracket |
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How to Use This Calculator
Enter your information in the form to calculate your estimated federal income tax.
- Select your filing status
- Enter your taxable income
- Provide any tax already withheld or paid
- Choose between standard or itemized deductions
- Click “Calculate Tax” to see your results
Income Tax Guide β Understand Taxable Income, Deductions & Credits
What Is Taxable Income?
Taxable income is your total earnings minus eligible deductions and exemptions. Use your W-2 form to calculate it correctly.
Other Taxable Income
Additional income sources include:
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Interest income β from savings, CDs, or refunds.
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Capital gains β short-term (taxed as normal income) or long-term (lower rate).
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Dividends β qualified dividends get lower tax rates.
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Passive income β from rental properties or investments.
Exemptions
Exemptions help reduce or eliminate taxable income. Examples include certain charities, religious organisations, or government bodies.
Tax Deductions
Deductions lower your taxable income and reduce your tax bill.
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Above-the-Line Deductions (ATL): IRA contributions, student loan interest, tuition, or moving expenses.
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Below-the-Line Deductions (BTL): Standard or itemised deductions like mortgage interest, donations, medical costs, or state/local taxes.
Modified Adjusted Gross Income (MAGI)
MAGI helps determine eligibility for specific tax credits or deductions. Itβs your Adjusted Gross Income (AGI) plus some added-back deductions such as student loan interest or IRA contributions.
Business Expenses
Ordinary and necessary business costs can be deducted if they are related to profit-making activities.
Standard vs. Itemised Deductions
You can choose the standard deduction or itemise your deductions β whichever saves more:
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$15,000 for single taxpayers (2025)
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$30,000 for married couples filing jointly (2025)
Tax Credits
Tax credits directly reduce the tax you owe.
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Non-refundable: Reduce tax to $0 but not beyond.
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Refundable: Can create a refund if taxes owed drop below $0.
Popular tax credits:
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Earned Income Tax Credit (EITC)
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Child Tax Credit
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American Opportunity Credit (education)
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Energy-efficient home and electric vehicle credits
Alternative Minimum Tax (AMT)
The AMT ensures high-income earners pay at least a minimum tax amount. Reduce your AMT risk by increasing retirement savings and charitable contributions.