Quick answer: A single filer earning $85,000 in 2025 deducts the $15,750 standard deduction, leaving $69,250 taxable, and owes $10,149 of federal income tax: an effective rate of 11.94% and a marginal rate of 22%.
How it's calculated
Taxable income = gross income − pre-tax deductions and adjustments − the standard deduction (2025: $15,750 single or married filing separately, $31,500 married filing jointly, $23,625 head of household) or your itemized deductions if larger.
The US uses marginal brackets: each rate applies only to the income inside its band (10%, 12%, 22%, 24%, 32%, 35%, 37%). Your marginal rate is the rate on your last dollar; the effective rate is total tax ÷ gross income.
Figures are for tax year 2025 (returns filed in 2026): brackets from IRS Rev. Proc. 2024-40 and the standard deduction as raised by the One Big Beautiful Bill Act. Credits, state tax and FICA are not included; for pay after all of these, see the US take-home pay calculator.
Worked examples
- Single, $85,000: taxable 69,250 → 1,192.50 + 4,386 + 4,570.50 = $10,149
- Married jointly, $150,000: taxable 118,500 → $15,898
2025 federal tax brackets (taxable income)
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | 0 – 11,925 | 0 – 23,850 | 0 – 17,000 |
| 12% | 11,925 – 48,475 | 23,850 – 96,950 | 17,000 – 64,850 |
| 22% | 48,475 – 103,350 | 96,950 – 206,700 | 64,850 – 103,350 |
| 24% | 103,350 – 197,300 | 206,700 – 394,600 | 103,350 – 197,300 |
| 32% | 197,300 – 250,525 | 394,600 – 501,050 | 197,300 – 250,500 |
| 35% | 250,525 – 626,350 | 501,050 – 751,600 | 250,500 – 626,350 |
| 37% | over 626,350 | over 751,600 | over 626,350 |
Frequently asked questions
Does moving into a higher bracket mean all my income is taxed more?
No. Only the income above the bracket threshold is taxed at the higher rate.
Should I itemize?
Only if your itemized deductions (mortgage interest, state and local taxes up to the cap, charity) are larger than the standard deduction.
I live in the Gulf. Do I owe US tax?
US citizens and green-card holders are taxed on worldwide income wherever they live, but the foreign earned income exclusion and foreign tax credits often reduce it. Check IRS guidance for Americans abroad.
Is the extra deduction for people 65 and over included?
No. Add any additional standard deduction or the 2025 senior deduction to the adjustments field yourself.
What is the difference between marginal and effective tax rates?
The marginal rate applies to your last dollar of income. The effective rate is your total tax divided by your income, and it is lower.
What is the difference between a deduction and a credit?
A deduction lowers the income that is taxed. A credit lowers the tax itself, so a credit of the same size is usually worth more.