Free 2026 Tax Estimator
The tax calculator built for real life: RSU vesting, bonuses, freelance income, and all 50 states - calculated together, instantly. No sign-up. No upsell.
Run my estimateFederal + state + RSU + freelance. All in one estimate.
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Common Tax Surprises
These are the most-asked questions on r/personalfinance and r/tax every January through April.
The IRS requires employers to withhold at the 22% supplemental rate on RSU vests. If your total income pushes you into the 24%, 32%, or 35% bracket, you'll owe the gap at filing.
W-2 employees have tax withheld automatically. Side income doesn't. Earn more than ~$1,000 net freelance without quarterly estimates and you'll likely owe a penalty on top of the tax bill.
When both spouses work, each W-4 is calculated as if it's the only income. Combined, you can push into a higher bracket that neither employer withholds for.
Like RSUs, bonuses are often withheld at the 22% supplemental rate. This is a prepayment, not your final rate. If you're in the 24-37% bracket, you'll owe the difference.
Relocating during the year can mean filing in two states. High-tax states like CA, NY, and NJ have aggressive withholding rules and may tax income earned while you lived there.
Short-term capital gains (held under 1 year) are taxed at your full marginal rate. This can significantly change your total tax picture and isn't covered by standard withholding.
How it works
No account needed. No email required. Just enter your numbers and see exactly where you stand.
W-2 wages, bonuses, freelance income, dividends, and RSU vests - all together, as the IRS sees them.
Federal and state withholding from your paystubs, plus any quarterly estimated payments you've made.
Instant breakdown: federal + state owed, effective rate, marginal rate, and your likely April outcome - with plain-English tips.
If you're underpaid, we tell you exactly how much to increase withholding per month to break even at filing.
Frequently asked questions
Will I owe taxes if my W-4 says I'm exempt?
Claiming exempt only exempts withholding - it doesn't eliminate your tax liability. If you have other income sources (freelance, RSUs, interest), you can still owe at filing.
Why does my RSU withholding never seem like enough?
Employers withhold RSU income at the 22% supplemental rate. If your total income puts you in the 24%, 32%, or higher bracket, you'll owe the gap. High earners in CA, NY, or NJ are hit hardest.
How much should I set aside for freelance taxes?
A safe rule of thumb is 25-30% of net freelance income for federal + self-employment tax, plus your state rate. In CA that can mean setting aside 35-40% of every freelance dollar.
What's the underpayment penalty and how do I avoid it?
The IRS charges a penalty if you've paid less than 90% of this year's liability, or less than 100% of last year's (110% if income >$150k). Pay 100% of last year's liability through withholding or quarterly payments to be safe.
We both work - should we file jointly or separately?
For most couples, filing jointly results in a lower total tax bill. Married filing separately is only beneficial in specific situations like income-driven student loan repayment plans.
Effective rate vs. marginal rate - which matters?
Your marginal rate is what you pay on the next dollar - use for decisions (Roth vs. traditional 401k, timing a vest). Your effective rate is your actual average - use to gauge overall burden.
Do I need quarterly taxes with a W-2 job?
Only if you have significant income outside your W-2 (freelance, rental, investments). If your W-2 withholding covers 90% of total tax owed, you don't need quarterly payments.
How does state tax work in this calculator?
The calculator applies real state tax brackets or flat rates for all 50 states and DC to your adjusted gross income. The "state tax withheld" field is what you've already paid your state - it's subtracted from state liability to show your balance.
Tax Guides
Each guide targets a top Reddit and Google search query. Click any card to open the full guide.
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The TaxCalculater.com estimator uses simplified 2026 federal income tax brackets and state income tax rates to generate a rough estimate of your potential federal and state income tax liability.
The calculator applies published state income tax brackets or flat rates to an approximation of your state taxable income. State taxable income often differs from federal taxable income - states have their own deduction rules, exemptions, and adjustments that are not fully modeled here. Use this as a directional estimate only.
For simple W-2-only situations, estimates are typically within 5-10% of actual liability. For complex situations (multiple states, AMT exposure, significant investment income, business income), the margin of error is larger. Always verify with a tax professional.
TaxCalculater.com is an educational tool. It does not constitute tax, legal, or financial advice and should not be relied upon for filing decisions. Consult a licensed CPA, enrolled agent, or tax attorney for advice specific to your situation.
When your employer withholds tax on RSU vests, they are required by the IRS to use the supplemental withholding rate of 22%. This is not your marginal rate. If your total income puts you in the 24%, 32%, or 35% bracket, the IRS will expect you to pay the difference when you file.
California withholds state tax on RSU vests at a flat 10.23% supplemental rate. If your total California income puts you in a higher bracket, the flat withholding is still not enough. The combination of federal and California underpayment is why tech workers in the Bay Area regularly face five-figure April bills.
Add your RSU vest value to your W-2 salary and any other income. Run the total through the calculator at the top of this page. Compare total federal and state tax owed against your actual withholding. The gap is what you will owe.
Consider increasing your W-4 withholding in months before a large vest to pre-pay the expected liability. Alternatively, make a quarterly estimated payment in the quarter your RSUs vest. Use the calculator to estimate the gap and divide by remaining pay periods or quarters.
Use the calculator: Enter your salary, RSU vest amounts, and state to see your real exposure instantly. Go to calculator
W-2 employees have federal and state tax withheld automatically from every paycheck. Freelance, consulting, and self-employment income has no automatic withholding. You are responsible for paying estimated taxes yourself, four times a year.
On top of regular income tax, freelancers owe self-employment (SE) tax of 15.3% on net earnings, covering both the employer and employee portions of Social Security and Medicare. Half of this is deductible, but you must pay it. This is the surprise that catches most first-year freelancers.
A conservative rule: set aside 25% to 30% of every net freelance payment for federal income tax plus SE tax. Add your state income tax rate on top. In California, Oregon, New York, or New Jersey, total withholding needs can reach 35 to 42%.
To avoid the underpayment penalty entirely, pay either 90% of your current year tax liability or 100% of last year's (110% if your prior year AGI exceeded $150,000). Paying last year's full liability is the simplest strategy.
Use the calculator: Enter your W-2 income and freelance income together to see total federal, state, and SE tax exposure. Go to calculator
Bonuses are classified as supplemental wages. The IRS allows employers to withhold at a flat 22% supplemental rate rather than calculating withholding based on your total annual income. This is a prepayment convenience, not your final tax rate.
If your base salary already puts you in the 22% or higher bracket, your bonus income will be taxed at your marginal rate of 24%, 32%, 35%, or 37%. The 22% withheld at payment time creates a gap that becomes due at filing.
Most states also apply supplemental withholding rates to bonuses. California withholds 10.23%. New York withholds at your regular state withholding rate. These rates may also fall short of actual state liability for high earners.
Add your bonus to your total annual income and run it through the calculator at the top of this page. Compare total tax owed to total tax already withheld. The gap is your April liability.
Use the calculator: Enter salary and bonus separately to see the exact withholding gap. Go to calculator
When you file jointly, your incomes combine. If both spouses earn similar moderate-to-high incomes, the combined income may fall in a higher bracket than either income would alone. This is most severe when both spouses earn similar amounts in the $100,000 to $400,000 range.
Each employer withholds as if the employee has no other income. Your W-4 tells your employer your filing status, but your employer does not know your spouse's income. Both withholdings are calibrated independently, often resulting in combined under-withholding.
The IRS W-4 Step 2 checkbox is designed for this. Checking it tells your employer to withhold at the higher single rate, compensating for the combined income effect. Alternatively, use W-4 Step 4(c) to request additional withholding per paycheck.
Married filing separately is beneficial primarily when one spouse has large unreimbursed medical expenses, or when enrolled in an income-driven student loan repayment plan where a lower individual AGI reduces payments. Otherwise, filing jointly almost always results in a lower combined tax bill.
Use the calculator: Set filing status to Married filing jointly and enter combined income to see your actual joint liability. Go to calculator
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on wages.
Colorado (4.4%), Illinois (4.95%), Indiana (3.05%), Kentucky (4%), Massachusetts (5%), Michigan (4.25%), Pennsylvania (3.07%), and Utah (4.55%) all use a flat rate applied to all income.
State income taxes paid are deductible on your federal return if you itemize, subject to the $10,000 SALT cap. If you take the standard deduction, state taxes paid provide no federal benefit.
Use the calculator: Select your state to see real bracket calculations applied to your income automatically. Go to calculator
Enter your name, address, SSN, and filing status. If you are single with one job and no other income, you may stop here and sign. Your employer will withhold at the standard rate for your income level.
If you have more than one job, or you are married and your spouse also works, check the Step 2 box or use the IRS withholding estimator. This tells your employer to withhold at a higher rate to account for combined household income.
If you are eligible for the Child Tax Credit or other credits, enter the annual credit amount here. This reduces withholding by spreading the credit across paychecks.
Use 4(a) for other income not subject to withholding such as freelance or investment income. Use 4(b) for additional deductions. Use 4(c) to request a flat extra dollar amount withheld per paycheck. This last option is the most reliable way to top up withholding if you regularly owe in April.
Run the TaxCalculater.com calculator to find your expected April balance. Divide by your remaining pay periods in the year. Enter that figure in W-4 Step 4(c) as additional withholding.
Use the calculator: Find your underpayment gap first, then divide by remaining pay periods to get your Step 4(c) number. Go to calculator