What Is Taxable Income?
This calculator applies to US federal income tax for the 2026 tax year. Taxable income is the portion of your income that is actually subject to federal income tax. It is found by taking your Adjusted Gross Income (AGI) and subtracting your deductions: either the standard deduction or your itemized deductions (whichever is larger), plus the Qualified Business Income (QBI) deduction if you qualify.
How to Use It
Enter your AGI (found on your Form 1040), choose your filing status, and enter any itemized deductions. If your itemized total is less than the standard deduction, the calculator automatically uses the larger standard deduction. Add your QBI deduction if you have pass-through business income. The result is your estimated federal taxable income.
The Formula Explained
The equation is $$\text{Taxable Income} = \text{AGI} - \max\!\left(\text{Standard},\ \text{Itemized}\right) - \text{QBI}$$ The 2026 standard deductions used are: Single $16,100, Married Filing Jointly $32,200, Married Filing Separately $16,100, and Head of Household $24,150. The result is floored at $0 since taxable income cannot be negative.
Worked Example
Suppose a single filer has an AGI of $80,000, itemized deductions of $10,000, and no QBI. The standard deduction ($16,100) exceeds the itemized amount, so the calculator uses $16,100. $$\text{Taxable Income} = \$80{,}000 - \$16{,}100 - \$0 = \mathbf{\$63{,}900}$$
FAQ
Should I itemize or take the standard deduction? Take whichever is larger. This tool picks the bigger amount automatically.
What is the QBI deduction? The Qualified Business Income deduction lets eligible self-employed and pass-through business owners deduct up to 20% of qualified business income. Enter your computed amount.
Is this my tax bill? No. This is your taxable income — the figure your tax brackets are then applied to. It is not the tax owed.
