Tax Refund Calculator 2026 – Federal Income Tax Estimator

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How your refund is calculated

A tax refund is the difference between what you paid during the year and the tax you actually owe:

Refund (or amount owed) = tax withheld + estimated payments + refundable credits − total tax

1. Total income: wages, tips, interest, dividends, unemployment and other taxable income.
2. Adjusted gross income (AGI): total income minus adjustments such as traditional IRA and HSA contributions and student loan interest.
3. Taxable income: AGI minus the standard or itemized deduction and the new deductions for tips, overtime, seniors and car loan interest.
4. Tax: taxable income run through the tax brackets.
5. Credits: the child tax credit and other credits reduce your tax dollar for dollar; refundable credits can be paid to you even if your tax is zero.
6. Payments: federal tax withheld from your paychecks (W-2 box 2) and any estimated payments.

For example, a single filer earning $50,000 in 2026 has $33,900 of taxable income after the $16,100 standard deduction. The tax is $3,820. With $4,500 withheld from paychecks, the refund is $680.

2026 tax brackets and standard deduction

You take the larger of the standard deduction and your itemized deductions (mortgage interest, state and local taxes up to the $40,000 SALT cap in 2025, $40,400 in 2026, charity and large medical bills). Most people take the standard deduction.

Credits that increase your refund

Refundable credits are why many families with low or moderate incomes get refunds larger than the tax withheld. A head of household earning $40,000 with two children has no income tax after the child tax credit, and receives about $2,815 of refundable child tax credit plus about $3,923 of earned income credit in 2026.

The earned income credit has income limits: for 2026 it phases out completely around $19,540 with no children and $62,974 with three or more ($26,820 and $70,224 for joint filers), and investment income must be $12,200 or less. Workers without children must be 25 to 64.

New deductions from the 2025 law

The One Big Beautiful Bill Act added deductions for 2025 through 2028 that you can take with the standard deduction:

• No tax on tips: up to $25,000 of qualified tips in occupations that customarily receive tips.
• No tax on overtime: up to $12,500 ($25,000 joint) of the extra half-time premium of overtime required by federal law.
• Senior deduction: $6,000 for each person 65 or older, on top of the extra standard deduction, reduced by 6% of income over $75,000 ($150,000 joint).
• Car loan interest: up to $10,000 a year on a loan for a new car assembled in the U.S., reduced above $100,000 of income ($200,000 joint).
• Charity for non-itemizers (from 2026): up to $1,000 ($2,000 joint) of cash donations.

The tips and overtime deductions phase out by $100 for every $1,000 of income over $150,000 ($300,000 joint). The tips, overtime and senior deductions are not available to married couples filing separately. Social Security and Medicare still apply to tips and overtime.

When to expect your refund

• E-file with direct deposit: most refunds arrive within 21 days of the IRS accepting your return.
• Earned income or additional child tax credit: by law the IRS can't release these refunds before mid-February, so they usually arrive in late February or early March.
• Paper returns: take about 6 weeks or more to process.

The IRS is phasing out paper refund checks, so give your bank account details for direct deposit. Track your refund with the IRS "Where's My Refund?" tool.

Why you might owe instead

You owe when too little tax was withheld during the year. Common reasons are a second job or a working spouse, side-gig or freelance income with no withholding, unemployment benefits without the 10% withholding, or a large raise or bonus. Owing more than $1,000 can trigger an underpayment penalty. Use the Tax Withholding Calculator to update your W-4 for next year.

Examples

2026 tax year, wages only unless noted, no other income or deductions:

Methodology and last updated

The calculator follows the Form 1040 order: total income, adjustments, AGI, the larger of the standard or itemized deduction, the 2025-law deductions with their phase-outs, tax from the 2025 or 2026 brackets, the child tax credit and credit for other dependents, education and other nonrefundable credits, then withholding, estimated payments and refundable credits (additional child tax credit, earned income credit and the refundable part of the American Opportunity credit). The IRS tax tables round taxable income under $100,000 to $50 ranges, so your return may differ by a few dollars. All income is taxed as ordinary income; self-employment tax, capital gains rates, the alternative minimum tax and state taxes are not included. Results are estimates, not tax advice.

Last reviewed: November 1, 2026.