What is the US federal income tax system?

The US uses a progressive tax system where different portions of your income are taxed at different rates. Your first dollar is taxed at the lowest rate (10%), and as your income increases, each additional dollar is taxed at higher rates (12%, 22%, 24%, 32%, 35%, and 37%).

What changed in 2018 with the Tax Cuts and Jobs Act (TCJA)?

The TCJA, passed in December 2017 and effective from 2018, made several major changes: reduced the number of tax brackets from 7 to 7 (but changed rates), lowered the top rate from 39.6% to 37%, nearly doubled the standard deduction, and suspended personal exemptions through 2025.

What happens to tax brackets in 2026?

Most TCJA individual tax provisions are scheduled to expire after 2025. Without congressional action, tax rates will revert to pre-2018 levels, the standard deduction will roughly halve, and personal exemptions will return. This is often called the 'tax cliff'.

What is the standard deduction?

The standard deduction is a set amount that reduces your taxable income. For 2025, it's $15,000 for single filers and $30,000 for married couples filing jointly. It increased significantly in 2018 due to the TCJA.

What is the difference between marginal and effective tax rate?

Your marginal tax rate is the rate on your last dollar of income (e.g., if you're in the 22% bracket, your marginal rate is 22%). Your effective tax rate is your actual tax divided by your total income, which is always lower because only portions of your income are taxed at higher rates.

US Federal Income Tax Calculator for NRIs

Calculate your US federal income tax liability with historical comparison. Perfect for Indian NRIs working in USA. See how tax brackets have evolved from 2015 to 2025.

Updated: April 2026·By Rajat

Your Income Details

Annual Taxable Income ($)

Filing Status

Tax Year

20152025

Tax Computation (2025)

Total Tax Liability

$8,114

Effective Tax Rate: 13.52% · Marginal Rate: 22%

Taxable Income

$60.0K

After standard deduction

Standard Deduction

$15.0K

2025 year

Tax Bracket Breakdown

Rate	Income in Bracket	Tax
10%	$11.9K	$1.2K
12%	$36.5K	$4.4K
22%	$11.5K	$2.5K

Historical Comparison

Year	Tax Liability	Change	Effective Rate
2024	$8.3K	+$227	13.81%
2023	$8.8K	+$647	14.33%
2022	$9.3K	+$1.2K	14.94%
2021	$9.5K	+$1.4K	15.26%
2020	$9.6K	+$1.4K	15.27%
2018	$9.8K	+$1.7K	15.55%
2015	$13.0K	+$4.9K	18.88%

How to use this calculator

1Enter your annual taxable income (wages, salary, etc.).
2Select your filing status (Single, Married Filing Jointly, etc.).
3Choose the tax year you want to calculate for.
4View your tax liability, effective rate, and historical comparison.

Frequently Asked Questions

Deepen Your Knowledge

Understanding how US tax brackets work is essential for tax planning. Learn about the TCJA changes, what's expiring in 2026, and how to prepare.

US Federal Tax Brackets: Complete 10-Year Guide for NRIs How Much Tax Do I Pay on $100,000 Income?