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Tax Calculators

Estimate your federal and state income taxes, calculate sales tax, and determine capital gains liability.

Taxes are one of life's certainties, but they don't have to be a mystery. Whether you are estimating your annual tax bill, calculating the final price of a purchase, or planning an investment sale, our free tax calculators help you navigate the complexities of the tax code.

Understanding the US Tax System

The United States uses a progressive tax system for federal income tax. This means that higher earners pay a higher percentage of their income in taxes, but only on the money that falls into higher "brackets."

Example: How Brackets Work

Imagine a simplified system where income up to $10,000 is taxed at 10%, and income over $10,000 is taxed at 20%.

If you earn $15,000:

  • You pay 10% on the first $10,000 = $1,000
  • You pay 20% on the remaining $5,000 = $1,000
  • Total Tax = $2,000 (Effective rate of 13.3%, not 20%)

Types of Taxes

Income Tax

Levied by the federal government and most states on your earnings, including wages, interest, and dividends.

FICA Tax

Payroll taxes that fund Social Security and Medicare. These are flat rates shared by employees and employers.

Capital Gains Tax

Tax on the profit from selling an asset. Long-term gains (held >1 year) are taxed at preferential lower rates.

Sales Tax

Consumption tax imposed by state and local governments on the sale of goods and services.

Tax Planning Strategies

  • Contribute to Retirement Accounts: Money put into a Traditional 401(k) or IRA is tax-deductible, lowering your taxable income for the year.
  • Use an HSA: Health Savings Account contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for medical expenses.
  • Hold Investments Longer: Holding assets for at least a year qualifies you for long-term capital gains rates, which are significantly lower than ordinary income rates.
  • Harvest Losses: You can sell losing investments to offset gains from winning investments, reducing your overall tax liability (Tax-Loss Harvesting).

Use our calculators to estimate your liability, but always consult with a qualified CPA or tax professional for advice specific to your situation.

Frequently Asked Questions