Taxable Income
Taxable income is the portion of your income the IRS actually taxes — your adjusted gross income minus the standard or itemized deduction. It's the number that determines which tax brackets apply, not your gross salary, which is why your effective rate is lower than it looks.
Two figures sit between your salary and your tax bill. Adjusted gross income is total income less certain deductions taken before the standard deduction, such as pre-tax retirement contributions and HSA contributions. Taxable income is AGI less the standard or itemized deduction, and it is the figure the brackets actually apply to. Because the brackets are progressive, only the income falling inside each band is taxed at that band's rate — so a salary in the 22% bracket produces an effective federal rate far below 22%, and a raise into a higher bracket can never reduce your take-home pay. Lowering taxable income through pre-tax contributions is the main lever most households have.
Put it to work
Federal Income Tax Calculator
Estimate your 2026 federal income tax: total tax, effective and marginal rates, and a bracket-by-bracket breakdown using official IRS figures.
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).