Free resources / U.S. business owners
What tax rate applies to your next dollar of income?
See your estimated 2026 federal marginal rate and compare a proposed deduction across tax brackets. State and local taxes are not included.
Compare your scenario ↓01 / Your situation
Compare your numbers.
Annual figures in U.S. dollars. Replace the examples with your own. Federal tax only.
Use taxable income after existing deductions, not revenue or gross business profit. This model assumes all taxable income uses ordinary rates; exclude situations with qualified dividends or net capital gains.
Enter an amount your tax professional says would be deductible this year. This tool does not determine eligibility, QBI adjustments or carryforwards.
02 / Federal comparison
What changes in your scenario
- Estimated federal tax reduction
- $11,772
- Federal tax before additional deduction
- $45,196
- Federal tax after additional deduction
- $33,424
- Taxable income after deduction
- $200,000
- Entered deduction beyond taxable income (effect not modeled)
- $0
Federal marginal bracket: 24% before, 22% after. The next bracket begins above $403,550 of taxable income. State and local tax are not calculated.
2026 federal estimate · Figures rounded for display
State and local taxes are not included.
How your brackets work
Only the income in each band is taxed at that band’s rate. A deduction can remove income from more than one bracket.
- 10% band: $24,800 of income
- $2,480 federal tax
- 12% band: $76,000 of income
- $9,120 federal tax
- 22% band: $110,600 of income
- $24,332 federal tax
- 24% band: $38,600 of income
- $9,264 federal tax
What this comparison includes
2026 federal ordinary-income rate schedule only, before credits. Income must already reflect existing deductions. Assumes the additional deduction reduces taxable income dollar for dollar. Excludes state/local tax, capital gains, qualified dividends, self-employment tax, payroll taxes, AMT, NIIT, credits, QBI interactions and deduction phaseouts. Marginal rate is the bracket applying just above the entered income; the tax effect of a deduction can span several brackets. A modeled reduction is not a refund or confirmed overpayment.
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Sources and calculation scope
Reviewed September 22, 2026. The Social Security worksheet is the latest available IRS publication; the ordinary-income brackets are for 2026.