Tax Calculator
Paycheck Tax Calculator
Not sure what to put on your W-4? Answer a few questions about your income and situation — get the exact numbers for Steps 3, 4a, 4b, and 4c in under 2 minutes. Includes the new 2026 OBBBA deductions for tips, overtime, car loans, and seniors.
By Sammy S. · Founder · AuthorUpdated for 2026
$16,100
2026 standard deduction (single)
$25,000
No-tax-on-tips exclusion
$12,500
Overtime premium deduction
$2,200/child
Child tax credit (OBBBA)
OBBBA dollar impact, 2026 tax brackets, and the side hustle tax trap
The One Big Beautiful Bill Act (OBBBA) introduced five major provisions that directly reduce how much federal income tax you owe — and therefore how much your employer withholds. The savings vary by your marginal tax bracket. Here's the concrete dollar impact at the 12%, 22%, and 24% brackets, which cover the majority of American workers.
| Provision | Limit | At 12% | At 22% | At 24% | Who Qualifies |
|---|---|---|---|---|---|
| No Tax on Tips§201 | Up to $25,000 | $3,000 | $5,500 | $6,000 | Restaurant, hotel, salon, delivery, casino workers |
| Overtime Premium Deduction§202 | Up to $12,500 | $1,500 | $2,750 | $3,000 | Any W-2 employee who regularly works overtime |
| Car Loan Interest Deduction§203 | Up to $10,000 | $1,200 | $2,200 | $2,400 | Buyers of US-assembled passenger vehicles with loan interest |
| Enhanced Senior Deduction§204 | Extra $6,000 | $720 | $1,320 | $1,440 | All taxpayers age 65 or older |
| Child Tax Credit§301 | $2,200/child | $2,200 | $2,200 | $2,200 | Parents with qualifying children under 17 |
Maximum combined savings
A tipped worker at 22% who earns $25K in tips, works overtime ($12,500 premium), and has 2 kids: tips savings ($5,500) + overtime ($2,750) + CTC ($4,400) = $12,650 in tax savings — all reflected immediately in reduced withholding once you file a new W-4.
Update your W-4 to claim immediately
These deductions don't kick in automatically. You must file a new W-4 with your employer to get reduced withholding now. Without a new W-4, you'd claim them on your 2026 tax return in 2027 — essentially giving the IRS an interest-free loan all year.
Sources: One Big Beautiful Bill Act (OBBBA) Sections 201–301; IRS Publication 15-T (2026 withholding methods); 2026 tax bracket data from IRS Rev. Proc. 2025-adjusted parameters.
Federal income tax is progressive — you only pay the higher rate on income above each threshold, not on your entire income. With the 2026 standard deduction of $16,100 (single) or $32,200 (MFJ), most workers pay nothing on their first $16,100–$32,200 of income. Understanding your marginal rate helps you evaluate how much each OBBBA deduction is actually worth.
Single / Married Filing Separately
| Rate | Taxable Income |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,926 – $48,475 |
| 22% | $48,476 – $103,350 |
| 24% | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 |
| 35% | $250,526 – $626,350 |
| 37% | Over $626,350 |
Married Filing Jointly / Qualifying Widow(er)
| Rate | Taxable Income |
|---|---|
| 10% | $0 – $23,850 |
| 12% | $23,851 – $96,950 |
| 22% | $96,951 – $206,700 |
| 24% | $206,701 – $394,600 |
| 32% | $394,601 – $501,050 |
| 35% | $501,051 – $751,600 |
| 37% | Over $751,600 |
Standard Deduction 2026
SS & Medicare 2026
Key 2026 Numbers
Sources: IRS Rev. Proc. 2025 (2026 inflation adjustments); IRS Publication 15-T (2026 withholding tables); IRS SS/Medicare Topic 751.
If you earn any 1099 income — driving for Uber/Lyft, freelancing, Etsy, consulting, or any other gig work — you face two tax bills your employer isn't covering: (1) regular income tax on the 1099 earnings, and (2) self-employment (SE) tax at 15.3%. Employees only pay 7.65% for FICA because employers cover the other half. Self-employed people pay both sides.
Example: $20,000 in 1099 income at 22% bracket
Option 1: Add to Step 4c
Ask your employer to withhold an extra $228/paycheck (in this example) on W-4 Step 4c. Simple, automatic, and you avoid quarterly deadlines. Best if your W-2 income is reliable and you prefer set-and-forget.
Option 2: Quarterly estimated taxes
Pay the IRS directly 4× per year (due Apr 15, Jun 16, Sep 15, Jan 15). 2026 deadlines: Q1 Apr 15, Q2 Jun 16, Q3 Sep 15. Better if your side income is variable or you want to keep cash flow control. Use IRS Form 1040-ES.
Underpayment penalty
If you owe more than $1,000 at tax time and haven't paid enough through withholding or estimates, the IRS charges an underpayment penalty. The W-4 Assistant calculates your gap and tells you which option avoids it.
Sources: IRS SE Tax: irs.gov/self-employment-tax; IRS Form 1040-ES instructions; IRS Publication 505 (Tax Withholding and Estimated Tax).
The W-4, Employee's Withholding Certificate, tells your employer how much federal income tax to take out of each paycheck. Get it right and you roughly break even at tax time.
Fill it out too conservatively: big refund — but you gave the government an interest-free loan. Too aggressively: could owe a penalty. For 2026, the OBBBA added several new deductions that can legitimately lower your withholding right now.
Update your W-4 when:
Step 4c is the “extra withholding” line — a dollar amount your employer pulls from every paycheck on top of the normal calculation. It's surprisingly powerful for covering freelance income, investment income, or a spouse's wages that aren't being withheld enough.
State withholding is often overlooked. Many states have their own withholding form: California uses the DE-4, New York uses the IT-2104, New Jersey has the NJ-W4. Select your state in the calculator — it handles state tax in the same calculation and points you to the right state form when you're done.
Answer a few questions about your income and situation — we'll hand you the exact values for Steps 3, 4a, 4b, and 4c, ready to transfer onto your W-4.
Fill Out My W-4Take-home pay & withholdings
Filing status take-home & W-4
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OBBBA deductions & credits