Biden Tax Plan Calculator (US) - 2025 Tax Changes
Compare your US federal income tax under current 2025 rates vs the proposed Biden tax plan with 39.6% top bracket filing status options and standard deductions.
About This Calculator
The Biden Tax Plan Calculator (US) helps you estimate how President Biden's proposed tax changes would affect your federal income tax. Compare your tax liability under current 2025 tax rates (top bracket 37%) versus the proposed rates under the Biden plan (top bracket 39.6%).
The calculator uses the official 2025 IRS progressive tax brackets for single, married filing jointly, and head of household filers. It applies the standard deduction ($15,000 for single, $30,000 for MFJ, $22,500 for HOH) to arrive at taxable income, then computes tax under both current and proposed rate schedules. The difference shows you how much more (or less) you would pay under the Biden proposal.
The Biden administration's tax plan aims to fund investments in infrastructure, child care, education, and climate initiatives by raising taxes on high-income households and corporations while expanding credits for middle and lower-income families. Key changes include raising the top individual rate from 37% to 39.6%, taxing capital gains at ordinary rates for earners over $1M, and increasing the corporate rate from 21% to 28%.
Note that this calculator focuses on federal income tax changes only. It does not account for capital gains tax changes, corporate tax effects, or expanded tax credits like the Child Tax Credit. For a complete picture, consult a tax professional.
Frequently Asked Questions
What is the Biden tax plan proposal?
The Biden plan proposes increasing the top individual income tax rate from 37% to 39.6%, taxing capital gains at ordinary rates for earners over $1M, raising the corporate tax rate from 21% to 28%, and expanding the Child Tax Credit and Earned Income Tax Credit.
Who would be affected by the Biden tax plan?
High-income earners in the top tax bracket over $626,350 for single filers and $751,600 for married filing jointly would see the largest increases. Middle and lower income households would benefit from expanded tax credits including Child Tax Credit increases up to $3,600 per child.
What are the 2025 US federal income tax brackets?
2025 single filer brackets: 10% $0-$11,925, 12% $11,926-$48,475, 22% $48,476-$103,350, 24% $103,351-$197,300, 32% $197,301-$250,525, 35% $250,526-$626,350, 37% over $626,351. Married filing jointly thresholds are approximately double. Standard deduction is $15,000 for single filers.
How would capital gains be taxed under Biden's plan?
Those earning over $1M would see capital gains taxed at ordinary income rates up to 39.6% plus the 3.8% Net Investment Income Tax (NIIT), bringing the top rate to 43.4% instead of the current 20% plus 3.8% NIIT. The proposal also eliminates the step-up in basis for inherited assets.
What is the proposed corporate tax rate change?
The Biden plan proposes increasing the corporate tax rate from 21% (set by the TCJA of 2017) to 28%. A minimum corporate tax of 15% would apply to large corporations reporting substantial profits to shareholders but low taxable income.
How does the Biden plan affect small business owners?
Pass-through entities such as LLCs and S-corporations face individual rate increases since their income flows through to personal tax returns. The Qualified Business Income deduction (Section 199A) may be modified or capped for higher-income business owners.
When would the Biden tax plan take effect?
The proposal requires congressional approval. If passed, changes would likely take effect in the next available tax year after enactment. Some provisions may have different effective dates, and the final legislation may differ from initial proposals.
How is tax calculated in this calculator?
The calculator applies the 2025 progressive federal tax brackets to your taxable income after the standard deduction. It computes tax under current rates (top rate 37%) and under the proposed Biden plan rates (top rate 39.6%) and displays the difference.