How the tax refund estimator works
Basic mode needs four things: your filing status, your wages, the federal tax withheld from your pay, and how many children you have. That covers most people with a W-2 job. Advanced mode adds self-employment income, investments, itemized deductions, the new tips and overtime deductions, child care and college credits, and a W-4 adjustment per paycheck.
How your refund is calculated
- Total income: wages, self-employment profit, interest, dividends, capital gains, and other income.
- Adjusted gross income (AGI): total income minus adjustments, such as deductible IRA contributions and half of self-employment tax.
- Taxable income: AGI minus the larger of the standard deduction or your itemized deductions, and any other deductions you qualify for.
- Tax: each slice of taxable income is taxed at its bracket rate, then credits are subtracted.
- Refund or balance due: tax already paid plus refundable credits, minus the tax you owe.
2026 federal tax brackets
These are the brackets for tax year 2026, the return you file in early 2027. Married filing separately uses the single brackets, except that the 35% bracket ends at $384,350.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Only the income inside each bracket is taxed at that rate. A single filer with $48,900 of taxable income pays 10% on the first $12,400 and 12% on the rest: $5,620, an average of 11.5%, even though their top bracket is 12%.
2026 standard deduction
| Filing status | Standard deduction |
|---|---|
| Single | $16,100 |
| Married filing jointly | $32,200 |
| Married filing separately | $16,100 |
| Head of household | $24,150 |
Example refunds for 2026
W-2 workers taking the standard deduction, with no other income:
| Household | Wages | Tax withheld | Tax after credits | Result |
|---|---|---|---|---|
| Single, no children | $45,000 | $3,800 | $3,220 | $580 refund |
| Single, no children | $65,000 | $6,500 | $5,620 | $880 refund |
| Head of household, 1 child | $40,000 | $1,500 | −$2,468 | $3,968 refund |
| Married jointly, 2 children | $90,000 | $5,000 | $2,040 | $2,960 refund |
| Married jointly, 2 children | $150,000 | $13,000 | $10,940 | $2,060 refund |
A negative tax after credits means refundable credits, like the earned income credit and the refundable part of the child tax credit, are more than the tax owed, so the difference is paid to you even with little withholding.
State income tax in 2026
Choose your state in the estimator and enter your state withholding (W-2 box 17) to see your state refund too. For a sense of the difference states make, here's the estimated 2026 state income tax on the same income:
| State | Single, $65,000 AGI | Married, 2 children, $120,000 AGI |
|---|---|---|
| California | $1,988 | $2,993 |
| New York | $2,913 | $5,173 |
| Illinois | $3,073 | $5,361 |
| Pennsylvania | $1,996 | $3,684 |
| Ohio | $1,012 | $2,375 |
| Georgia | $2,751 | $4,567 |
| North Carolina | $2,085 | $3,771 |
| Michigan | $2,512 | $4,097 |
| New Jersey | $2,044 | $3,579 |
| Virginia | $2,923 | $5,422 |
| Massachusetts | $3,030 | $5,460 |
| Arizona | $1,416 | $2,383 |
| Texas | $0 | $0 |
| Florida | $0 | $0 |
No tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Washington taxes only large long-term capital gains. Flat-rate states: Arizona 2.5%, Colorado 4.4%, Georgia 5.19%, Idaho 5.3%, Illinois 4.95%, Indiana 2.95%, Iowa 3.8%, Kentucky 3.5%, Louisiana 3%, Michigan 4.25%, Mississippi 4%, North Carolina 3.99%, Ohio 2.75%, Pennsylvania 3.07%, Utah 4.5%. Some cities and counties add their own income tax, such as New York City, Philadelphia, and many in Ohio, Maryland, and Pennsylvania; add it under Advanced.
Tax credits in 2026
| Credit | Amount | Refundable? |
|---|---|---|
| Child tax credit | Up to $2,200 per child under 17 | Up to $1,700 per child |
| Credit for other dependents | $500 per dependent (older children, parents) | No |
| Earned income credit | $664 (no children) to $8,231 (3+ children) | Yes |
| Child and dependent care credit | 20%–50% of up to $3,000 ($6,000 for 2+) | No |
| American Opportunity credit | Up to $2,500 per college student | Up to $1,000 |
What's new for the 2026 tax year
The One Big Beautiful Bill Act made the lower tax brackets permanent and added several deductions that apply whether or not you itemize:
| Change | What it does | Income limit |
|---|---|---|
| No tax on tips | Deduct up to $25,000 of qualified tips | Phases out above $150,000 ($300,000 joint) |
| No tax on overtime | Deduct the premium part of overtime pay, up to $12,500 ($25,000 joint) | Same phase-out as tips |
| Senior deduction | Extra $6,000 per person age 65+ | Phases out above $75,000 ($150,000 joint) |
| Car loan interest | Deduct up to $10,000 on a new US-assembled car | Phases out above $100,000 ($200,000 joint) |
| SALT cap | $40,400 for state and local taxes if you itemize | Shrinks above $505,000 of income |
| Charity without itemizing | Deduct up to $1,000 ($2,000 joint) of cash gifts | New for 2026 |
Getting a smaller bill or bigger paychecks
- Owe money? Add extra withholding in step 4(c) of a new Form W-4, or make quarterly estimated payments if you're self-employed.
- Big refund? Lower your withholding so the money arrives in your paychecks instead of a year later.
- Lower your taxable income with pre-tax 401(k), traditional IRA, and HSA contributions.
Planning what to do with your refund? Put it to work in the budget calculator, see how it grows with the compound interest calculator, or use it to pay down a card with the credit card payoff calculator.
Sources: IRS Revenue Procedure 2025-32 (2026 brackets, deductions, and credits), the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026, and the IRS Tax Withholding Estimator.
Frequently asked questions
How is my tax refund calculated?
Your refund is the tax you've already paid, mainly withholding from your paychecks, plus refundable credits, minus the tax you actually owe for the year. If you paid more than you owe, the difference comes back as a refund. If you paid less, you owe the balance.
What is the standard deduction for 2026?
For tax year 2026, the standard deduction is $16,100 for single filers and married filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. People 65 or older or blind add $2,050 if unmarried or $1,650 each if married.
How much is the child tax credit in 2026?
Up to $2,200 per qualifying child under 17, of which up to $1,700 is refundable even if you owe no tax. The credit shrinks by $50 for every $1,000 of income above $200,000, or $400,000 for married couples filing jointly.
Why do I owe taxes this year when I usually get a refund?
Common reasons are a second job or side income with no withholding, a raise or bonus withheld at too low a rate, a child aging out of the child tax credit, a change in filing status, or an old W-4. Enter your numbers in the estimator, then adjust your W-4 so next year's withholding matches.
When will I get my refund?
The IRS says most refunds for e-filed returns with direct deposit arrive within 21 days. By law, refunds that include the earned income credit or the additional child tax credit can't be issued before mid-February.
Is a big refund good?
A large refund means you overpaid during the year and gave the government an interest-free loan. Many people prefer a smaller refund and bigger paychecks, which you can get by lowering withholding on Form W-4. The estimator shows how much per paycheck.
Does this include state taxes?
Yes. Choose your state to estimate state income tax and your state refund from your state withholding. It uses each state's 2026 rates, brackets, standard deduction, and personal exemptions, starting from federal AGI. State credits and state-specific adjustments aren't included, so treat it as an estimate. Nine states have no tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Which states have a flat income tax in 2026?
Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, and Utah tax income at a single rate, though some exempt the first portion of income. The rest of the states with an income tax use graduated brackets.
This guide is for general education and is not financial, tax, or legal advice. See our disclaimer.