How it works
Taxable income = income − pre-tax contributions − standard (or itemized) deduction
The tax on that income is worked out bracket by bracket, then the child tax credit comes off: up to $2,200 per child under 17 in 2026, of which up to $1,700 per child can be paid to you even if you owe no tax. Compare the result with what's been withheld from your pay to see whether you're due a refund.
Worked example
A married couple earns $120,000 and puts $6,000 into 401(k)s. After the $32,200 standard deduction, $81,800 is taxable. The first $24,800 is taxed at 10% and the rest at 12%, for $9,320.
Their two children bring a $4,400 credit, so they owe $4,920, an effective rate of 4.3%. With $12,000 withheld from their paychecks during the year, they'd get about $7,080 back.
2026 federal tax brackets
Single
| Rate | Taxable income |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | Over $640,600 |
Married filing jointly
| Rate | Taxable income |
|---|---|
| 10% | $0 to $24,800 |
| 12% | $24,801 to $100,800 |
| 22% | $100,801 to $211,400 |
| 24% | $211,401 to $403,550 |
| 32% | $403,551 to $512,450 |
| 35% | $512,451 to $768,700 |
| 37% | Over $768,700 |
Head of household
| Rate | Taxable income |
|---|---|
| 10% | $0 to $17,700 |
| 12% | $17,701 to $67,450 |
| 22% | $67,451 to $105,700 |
| 24% | $105,701 to $201,750 |
| 32% | $201,751 to $256,200 |
| 35% | $256,201 to $640,600 |
| 37% | Over $640,600 |
Standard deduction for 2026: $16,100 single, $32,200 married filing jointly, $24,150 head of household.
Things to know
- This is an estimate. It leaves out other credits (such as the earned income credit), self-employment tax, and the new deductions for tips, overtime and seniors.
- A bigger refund isn't a win. It means more was withheld than needed. The W-4 withholding calculator shows how much to change per paycheck, and the IRS Tax Withholding Estimator goes line by line.
- Before December 31, the year-end tax calculator shows what extra 401(k), IRA and HSA money and selling investments at a loss would save.
- For take-home pay after Social Security, Medicare and state tax, use the paycheck calculator. For investment sales, the capital gains tax calculator.
Questions people ask
What tax bracket am I in?
Find your taxable income (after the standard deduction) in the table for your filing status. That bracket's rate applies only to the dollars in it, which is why your effective rate is always lower.
Will a raise push me into a higher bracket and cut my take-home pay?
No. Only the dollars above the bracket line are taxed at the higher rate. A raise always leaves you with more money after tax.
Sources
- IRS: tax inflation adjustments for tax year 2026
- IRS: Rev. Proc. 2025-32 (2026 tax rate tables, standard deduction, child tax credit)
- IRS: child tax credit
- IRS: Tax Withholding Estimator
Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.