“Tax brackets” is one of the most searched tax topics, and one of the most misunderstood. The U.S. uses a progressive marginal system: your income is divided into slices, and each slice is taxed at its own rate. Moving into a higher bracket never reduces your take-home pay on the income you already had; only the dollars above the bracket threshold are taxed at the higher rate.
Try it: Tax bracket calculatorYour marginal and effective rate, tax by bracket and the dollars left before the next bracket.How marginal rates work
Suppose a single filer has taxable income of $60,000 in tax year 2025. The first $11,925 is taxed at 10%, income from $11,925 up to $48,475 is taxed at 12%, and income above $48,475 up to $60,000 is taxed at 22%. The person’s “marginal rate” is 22%, but their effective rate — total tax divided by total income — is lower. This is why a raise cannot push your pay below what you earned before.
Important: brackets apply to taxable income — income after adjustments and the standard or itemized deduction — not to your gross salary. Our page on adjusted gross income explains the steps in between.
2025 federal tax brackets (returns filed in 2026)
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 |
| 12% | $11,925 – $48,475 | $23,850 – $96,950 |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 |
| 24% | $103,350 – $197,300 | $206,700 – $394,600 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
2026 federal tax brackets (returns filed in 2027)
The IRS announced the following for tax year 2026 in Revenue Procedure 2025-32 (summarized in its inflation-adjustment release):
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Head-of-household and married-filing-separately brackets are different; see the IRS rates and brackets page. Figures change yearly — verify at IRS.gov.
You never pay the higher rate on all of your income — only on the dollars that fall inside the higher bracket.
Worked example
A married couple filing jointly with $120,000 of wages and no other income, taking the 2025 standard deduction of $31,500, has taxable income of $88,500. The first $23,850 is taxed at 10% ($2,385), and the remaining $64,650 is taxed at 12% ($7,758). Total tax before credits is about $10,143 — an effective rate of roughly 8.5% on gross wages, even though their marginal bracket is 12%. (Illustrative arithmetic only; real returns involve credits, other income and rounding.)
Standard deduction and the 0% “bracket”
Because the standard deduction is subtracted first, a single filer in 2025 effectively pays no federal income tax on the first $15,750 of ordinary income, and the 10% bracket starts after that. That is why “how much can I earn before paying tax?” depends mainly on your filing status.
Capital gains and other special rates
Long-term capital gains and qualified dividends have separate rates (0%, 15%, 20%) that depend on taxable income; short-term gains are taxed as ordinary income. See capital gains tax rates. High earners may also owe the 3.8% net investment income tax and the 0.9% Additional Medicare Tax. Self-employed people pay self-employment tax on top of income tax.
Common myths
- “A raise can make me take home less.” No. Only income above the threshold is taxed at the higher rate. (Phase-outs of credits can create odd spots, but not a loss of the entire raise.)
- “My bracket is my tax rate.” Your effective rate is lower than your top marginal rate.
- “Withholding is my final tax.” Withholding is a prepayment; your return reconciles it. See how withholding works.
- “State and federal brackets are the same.” They are not. Some states use flat rates, some brackets, and nine have no broad wage income tax. See our state guides.
How brackets change each year
Bracket thresholds are indexed for inflation every year, and the IRS usually announces next year’s figures in the fall. The 2018 tax reform set the current rate structure (10%, 12%, 22%, 24%, 32%, 35%, 37%), and 2025 legislation made those rates permanent rather than letting them expire. Always check the IRS for the current-year figures before making decisions.
Using brackets in planning
Knowing where your income falls helps with decisions like whether to make pre-tax retirement contributions, how much to withhold on a W-4, or how much to set aside for estimated taxes. A rule of thumb: a deduction saves you roughly your marginal rate times the deduction; a credit saves you the credit’s full dollar amount. For a personalized estimate, use the IRS Tax Withholding Estimator or consult a professional.
Frequently asked questions
What are the 2026 federal tax brackets?
The rates remain 10%, 12%, 22%, 24%, 32%, 35% and 37%. For single filers the 10% bracket runs up to $12,400 of taxable income and the 37% bracket begins above $640,600; see the table above and the IRS release for other filing statuses.
Does moving into a higher bracket mean all my income is taxed more?
No. Only the portion of income above each threshold is taxed at the higher rate.
What is the difference between marginal and effective tax rate?
The marginal rate applies to your last dollar of taxable income. The effective rate is total tax divided by total income and is usually lower.
Official sources
- IRS: Federal income tax rates and brackets
- IRS: Tax year 2026 inflation adjustments
- IRS: Form 1040 instructions
- IRS Publication 17: Your Federal Income Tax
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.