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Income & Tax Calculators

Understand your income and plan your taxes with our financial calculators. Calculate take-home pay, estimate capital gains taxes, and optimize tax-advantaged accounts.

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Understanding Income & Taxes

Federal Income Tax Brackets

The U.S. uses a progressive tax system where higher income is taxed at higher rates. For 2026, rates range from 10% to 37%. Only the income in each bracket is taxed at that bracket's rate, not your entire income.

Payroll Taxes

In addition to income tax, you pay FICA taxes: 6.2% for Social Security (up to the wage base limit) and 1.45% for Medicare. Self-employed individuals pay both the employee and employer portions (15.3% total).

Capital Gains Rates

Long-term capital gains (assets held over 1 year) are taxed at preferential rates: 0%, 15%, or 20% depending on your income. Short-term gains are taxed as ordinary income. Proper timing of sales can significantly reduce your tax bill.

Tax-Advantaged Accounts

Accounts like 401(k)s, IRAs, and HSAs reduce your taxable income. HSAs are particularly powerful with triple tax benefits: deductible contributions, tax-free growth, and tax-free qualified withdrawals.

Frequently Asked Questions

How is my take-home pay calculated?

Your take-home pay is your gross salary minus: federal income tax (based on your W-4 withholding), state income tax (varies by state), Social Security (6.2%), Medicare (1.45%), and any voluntary deductions like 401(k) contributions or health insurance premiums.

What's the difference between short-term and long-term capital gains?

Short-term gains are from assets held 1 year or less and are taxed at your ordinary income rate (up to 37%). Long-term gains are from assets held more than 1 year and receive preferential rates (0%, 15%, or 20%). Holding investments longer can significantly reduce your tax bill.

How much can I contribute to an HSA in 2026?

For 2026, HSA contribution limits are $4,300 for individuals and $8,550 for families. If you're 55 or older, you can contribute an additional $1,000 catch-up contribution. These contributions are 100% tax-deductible.

Should I adjust my W-4 withholding?

If you consistently get large refunds, you're giving the government an interest-free loan. Consider adjusting your W-4 to take home more each paycheck. If you owe taxes at filing, you may need to increase withholding to avoid penalties. Use our paycheck calculator to optimize your withholding.