US Individual Income Tax Calculator – Calculate Federal Tax & Capital Gains

  • Adam
  • November 5, 2025

Calculate US federal income tax with our 2025 calculator. Supports progressive rates (10%-37%), capital gains (0%, 15%, 20% long-term), standard deductions, tax credits, and AMT. Instant results with detailed breakdown by filing status.

US Individual Income Tax Calculator 2025

Calculate your US federal income tax instantly. This comprehensive calculator supports progressive federal tax rates (10%-37%), capital gains tax (0%, 15%, 20% for long-term assets), standard deductions by filing status, tax credits (child tax credit, earned income credit, etc.), and alternative minimum tax (AMT). Updated with the latest 2025 tax brackets and regulations from the Internal Revenue Service.

Ordinary Income Tax Calculator

Capital Gains Tax Calculator

Combined Income & Capital Gains Calculator

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Detailed Tax Breakdown

DescriptionAmount (USD $)

Understanding US Federal Income Tax

The US federal income tax system uses progressive tax rates, meaning the rate increases as income increases. For 2025, there are seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The brackets differ based on filing status (single, married filing jointly, head of household, married filing separately, or qualifying widow(er)). Capital gains receive preferential tax treatment with maximum rates of 0%, 15%, or 20% for long-term gains, while short-term gains are taxed as ordinary income.

Progressive Rates: 10%-37%

Seven tax brackets with rates increasing based on income level. Only the income within each bracket is taxed at that rate (marginal, not average).

Standard Deduction 2025

Single: $15,750 | MFJ: $31,500 | HoH: $23,625 | Additional $2,000-$6,000 for age 65+

Capital Gains: 0%, 15%, 20%

Long-term gains (>1 year held) receive preferential rates. Short-term gains taxed as ordinary income up to 37%.

Tax Credits & Deductions

Child Tax Credit ($2,000), EITC, student loan interest, and itemized deductions reduce tax liability.

2025 Federal Income Tax Brackets

SINGLE FILERS
Taxable Income RangeTax Rate
$0 to $11,92510%
$11,926 to $48,47512%
$48,476 to $103,35022%
$103,351 to $197,30024%
$197,301 to $250,52532%
$250,526 to $626,35035%
$626,351+37%
MARRIED FILING JOINTLY
Taxable Income RangeTax Rate
$0 to $23,85010%
$23,851 to $96,95012%
$96,951 to $206,70022%
$206,701 to $394,60024%
$394,601 to $501,05032%
$501,051 to $751,60035%
$751,601+37%
HEAD OF HOUSEHOLD
Taxable Income RangeTax Rate
$0 to $17,00010%
$17,001 to $64,85012%
$64,851 to $103,35022%
$103,351 to $197,30024%
$197,301 to $250,50032%
$250,501 to $626,35035%
$626,351+37%

2025 Long-Term Capital Gains Tax Rates

Long-term capital gains (assets held more than 1 year) receive preferential tax treatment with rates of 0%, 15%, or 20% depending on total taxable income and filing status. These rates are significantly lower than ordinary income rates and encourage long-term investing. The income thresholds are adjusted annually for inflation.

Filing Status0% Rate15% Rate20% Rate
Single$0 - $48,350$48,351 - $533,400$533,401+
Married Filing Jointly$0 - $96,700$96,701 - $600,050$600,051+
Head of Household$0 - $64,750$64,751 - $566,700$566,701+
Married Filing Separately$0 - $48,350$48,351 - $300,000$300,001+

How to Calculate Federal Income Tax

Step 1: Calculate Adjusted Gross Income (AGI)

AGI Formula

AGI = Total Income - Above-the-line Deductions

Above-the-line deductions include educator expenses, student loan interest, IRA contributions, self-employment tax deduction, and Health Savings Account contributions.

Step 2: Calculate Taxable Income

Taxable Income = AGI - Standard Deduction (or Itemized Deductions, whichever is greater)

Step 3: Calculate Tax Using Brackets

Progressive Tax Calculation

Tax = (Income in 10% bracket × 10%) + (Income in 12% bracket × 12%) + ... + (Income in 37% bracket × 37%)

Step 4: Apply Tax Credits

Federal Income Tax = Tax from Brackets - Tax Credits

Standard Deduction by Filing Status 2025

Filing StatusStandard DeductionAge 65+ Add'lBlind Add'l
Single$15,750$2,000$2,000
Married Filing Jointly$31,500$1,600 (each)$1,600 (each)
Married Filing Separately$15,750$1,600$1,600
Head of Household$23,625$2,000$2,000
Qualifying Widow(er)$31,500$1,600$1,600

Important Note: Individuals age 65 and older, or blind, can claim additional standard deductions. Additionally, a new $6,000 deduction is available for individuals 65+ (ages 65-74, 75+, but with phase-out limitations). Dependent status also affects which standard deduction you can claim.

Common Tax Credits for Individual Filers 2025

Tax credits directly reduce your tax liability dollar-for-dollar, making them more valuable than deductions. Common credits include:

Tax CreditMaximum AmountIncome Limit (Phase-Out)
Child Tax Credit$2,000 per child$400,000 (MFJ); $200,000 (Single)
Earned Income Tax Credit (EITC)Up to $3,733 (varies)$45,060-$57,414 (depends on filing status/children)
American Opportunity Credit$2,500 per student$80,000 (Single); $160,000 (MFJ)
Lifetime Learning Credit$2,000 per return$80,000 (Single); $160,000 (MFJ)
Saver's Credit$1,000$68,250 (MFJ); $51,188 (Head of Household)
Adoption Credit$14,890 per child$414,890 (2025)
Dependent Care Credit$1,050-$3,000$15,000 for maximum credit

Capital Gains vs. Ordinary Income Taxation

Capital gains receive preferential tax treatment compared to ordinary income. Long-term capital gains (assets held more than 1 year) are taxed at 0%, 15%, or 20% depending on income level. Short-term capital gains (assets held 1 year or less) are taxed as ordinary income at rates up to 37%. Understanding this distinction is crucial for tax planning and investment strategy.

Long-Term Capital Gains (>1 Year Holding Period)

  • 0% Rate: Applies to lowest-income taxpayers with total income in the 10% tax bracket. Allows significant tax-free gains for lower-income investors
  • 15% Rate: Applies to most middle-class taxpayers with income above 10% bracket but below the 32% bracket
  • 20% Rate: Applies to highest-income taxpayers with income in the 32%, 35%, or 37% brackets

Short-Term Capital Gains (<1 Year Holding Period)

Short-term gains are taxed at ordinary income tax rates (10% to 37%). For high-income investors, this can result in tax rates up to 37% plus 3.8% Net Investment Income Tax, totaling 40.8%. Proper timing of asset sales to achieve long-term status can result in significant tax savings.

Alternative Minimum Tax (AMT) for Individuals

The Alternative Minimum Tax is an additional tax calculation for high-income taxpayers with significant deductions. It ensures high-income individuals pay at least a minimum amount of tax. The AMT exemption for 2025 is $81,300 for single filers and $126,550 for married couples filing jointly.

AMT Triggers: Large itemized deductions (state/local taxes, mortgage interest), stock options, rental property losses, and business deductions can trigger AMT. High-income taxpayers with income exceeding $100,000 should evaluate AMT exposure.

Investment Income Tax Considerations

Net Investment Income Tax (NIIT)

A 3.8% additional tax applies to net investment income for taxpayers with modified adjusted gross income exceeding $200,000 (single) or $250,000 (MFJ). Net investment income includes interest, dividends, capital gains, rental income, and business income from passive activities.

Qualified Dividend Income

Dividends from domestic corporations and qualified foreign corporations held for specific periods receive long-term capital gains treatment (taxed at 0%, 15%, or 20% rates) rather than ordinary income rates, even if the stock is held less than one year at some points.

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Frequently Asked Questions (FAQs)

What is the difference between marginal and effective tax rates?
Your marginal tax rate is the rate on your last dollar of income (your highest tax bracket). Your effective tax rate is your total tax divided by total income. For example, with $75,000 income (single, 2025), your marginal rate is 22% but your effective rate is approximately 10.5% due to the progressive bracket structure.
Should I itemize deductions or take the standard deduction?
Take whichever provides the larger deduction. Most taxpayers benefit from the standard deduction ($15,750-$31,500 for 2025). Only itemize if you have significant deductible expenses (state/local taxes up to $10,000, mortgage interest, charitable contributions, medical expenses) exceeding your standard deduction.
How long must I hold an asset to qualify for long-term capital gains rates?
You must hold the asset for more than one year to qualify for long-term capital gains rates (0%, 15%, or 20%). The holding period is measured from the date of purchase to the date of sale. Short-term gains (≤1 year) are taxed as ordinary income at rates up to 37%.
What is the Child Tax Credit and who qualifies?
The Child Tax Credit provides up to $2,000 per qualifying child under age 17. Qualifying children must be your biological child, stepchild, adopted child, foster child, sibling, or descendant, with Social Security number, living with you more than half the year, U.S. citizen/resident alien, and not claimed as dependent by another taxpayer. Income limits apply ($400,000 MFJ; $200,000 single).
What is the Earned Income Tax Credit (EITC)?
EITC is a refundable tax credit for lower-income workers. For 2025, maximum credits range up to $3,733. You must have earned income (wages, self-employment), be US citizen/resident alien, have valid Social Security number, and meet income limits ($57,414 for maximum credit with 3+ children). EITC is refundable, meaning you receive any excess amount as a refund.
Am I subject to the Alternative Minimum Tax (AMT)?
You may be subject to AMT if you have income exceeding $100,000, large itemized deductions, stock options, passive losses, or significant depreciation. AMT exemptions for 2025 are $81,300 (single) and $126,550 (MFJ). If your AMT exceeds your regular tax, you pay AMT. High-income taxpayers should evaluate AMT exposure annually.
Are investment losses deductible?
Capital losses offset capital gains dollar-for-dollar. If losses exceed gains, up to $3,000 of net capital loss can offset ordinary income. Excess losses carry forward indefinitely to future years. Investment losses cannot offset wages or other earned income beyond the $3,000 annual limitation.
What is the 3.8% Net Investment Income Tax (NIIT)?
NIIT adds 3.8% tax on net investment income (interest, dividends, capital gains, rental income) for high-income taxpayers with MAGI exceeding $200,000 (single) or $250,000 (MFJ). NIIT combined with long-term capital gains tax of 20% results in maximum 23.8% capital gains rate for top earners, plus potential 3.8% Medicare surtax on wages.
Can I deduct my state and local taxes (SALT)?
Yes, state and local taxes (income, sales, property taxes combined) are deductible if you itemize. However, the deduction is capped at $10,000 for 2025 ($5,000 if married filing separately). Most taxpayers benefit more from the standard deduction than itemizing, so the SALT cap affects primarily high-tax-state residents with significant itemized deductions.
What is wash sale and does it affect my capital gains?
A wash sale occurs when you sell a security at a loss and buy substantially identical security within 30 days before or after the sale. Wash sale rules disallow the loss deduction; instead, the loss is added to the cost basis of the replacement security. This prevents tax loss harvesting and repurchasing the same investment immediately.

Official Sources and References

Disclaimer: This calculator provides estimates based on current tax regulations as of 2025. Federal income tax brackets, capital gains rates, and credit limits may change with new legislation. Individual circumstances vary significantly based on filing status, dependents, income sources, deductions, and credits. For accurate tax planning and compliance, consult qualified tax professionals, CPAs, or tax advisors familiar with your specific situation and current IRS regulations.

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