Federal Tax Calculator
Estimate your federal tax liability for the 2025 tax year by entering your information below.
Deductions
Tax Credits
Withholding & Payments
Tax Calculation Results
Tax Bracket Breakdown
How Your Tax Was Calculated
Federal Income Tax Calculation
Federal income tax is a progressive tax system where higher income levels are taxed at higher rates. The U.S. tax system uses marginal tax brackets, meaning you pay different rates on different portions of your income. The AARP Tax Calculator helps you estimate your federal tax liability based on your filing status, income, deductions, and tax credits.
For the 2025 tax year, there are seven tax brackets ranging from 10% to 37%. Your filing status (single, married filing jointly, etc.) determines which tax bracket thresholds apply to you. The standard deduction, which reduces your taxable income, varies based on your filing status and is adjusted annually for inflation.
Tax credits directly reduce your tax bill dollar-for-dollar, making them more valuable than deductions. Common credits include the Child Tax Credit, Education Credits, and the Retirement Savings Contribution Credit.
How to Use the AARP Federal Tax Calculator
Step-by-Step Guide to Using the Tax Calculator
Step 1: Enter Your Filing Status
Select your filing status from the dropdown menu. Your filing status determines your tax brackets and standard deduction amount. Options include Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er).
Step 2: Input Your Income Information
Enter your total income for the year. This should include wages, salaries, tips, interest, dividends, capital gains, retirement distributions, and any other taxable income sources.
Step 3: Choose Between Standard or Itemized Deductions
Select whether you want to use the standard deduction or itemize your deductions. If you choose to itemize, enter your eligible expenses in the appropriate fields, including medical expenses, state and local taxes, mortgage interest, charitable contributions, and other deductions.
Step 4: Enter Your Tax Credits and Payments
Input any tax credits you’re eligible for, such as the Child Tax Credit, Education Credits, or Retirement Savings Credit. Also enter any federal tax already withheld from your paychecks and any estimated tax payments you’ve made during the year.
Step 5: Review Your Tax Calculation Results
After clicking the “Calculate Tax” button, review your detailed tax calculation results. The calculator will show your taxable income, tax amount by bracket, total tax due, and whether you can expect a refund or will owe additional tax. The breakdown explains exactly how your tax was calculated.