Loading the page
Which moves lower my tax bill this year?
See what you owe on a sample income, and how much retirement savings and deductions could change it.
Sample numbers. Change any field to use yours.
A hypothetical contribution comparison for tax year 2026, before state and payroll taxes. The suggested 401(k) amount is 20% of income capped at the individual base limit; it does not establish the best amount or your eligibility. Catch-ups are excluded.
Enter a confirmed deductible IRA amount and confirmed allowable credits. IRA income phaseouts, credit eligibility and phaseouts, and special married-separate deduction rules are not calculated.
Estimated yearly tax savingsSample
$1,
$1,080 a year
Reduce taxable income through pre-tax retirement savings
Retirement, easy to set up
Each slice of your taxable income is taxed at its own rate.
| Rate | Income in bracket | Tax |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $33,500 | $4,020 |
A teaching model with sample 2026 brackets. It is not tax advice.
Estimated tax difference
On these inputs the items below lower tax by about $1,080 a year. Limits and your own situation can change that.
Written by Elizabeth Stein
Calculation version: 2026-2. Reference year: 2026.
Source links checked: . This check confirms the linked material is available and relevant. It does not verify every figure or calculation in this lab.
Sampled calculation review on 2026-10-18 by Codex (internal AI-assisted verification), for version 2026-2. This is not independent or professional approval.
Review scope: Individual contribution limits, explicit HSA coverage, sample progressive tax differences and separate-filer loss guidance. Enter confirmed deductible amounts; eligibility, phaseouts and actual state returns are not verified.
A pre-tax 401(k) contribution lowers the income you pay federal tax on. The lab counts it up to the 2026 limit of $24,500, deductible traditional IRA money up to $7,500, and HSA contributions up to the 2026 family limit of $8,750. It shows your tax slice by slice across the federal brackets, plus your rate with a larger 401(k) contribution.
No. Take-home cash falls by the amount you contribute, and the tax you save only offsets part of that. The money is not gone: it sits in the retirement or health account. The lab labels both numbers so they are not confused.
No. Roth IRA contributions are made with money that has already been taxed, so they do not lower this year's tax and the lab leaves them out. The Roth conversion lab covers moving pre-tax money into a Roth account.