How Federal Tax Brackets Work
Progressive Taxation
The U.S. uses a progressive tax system, which means your income is not all taxed at one rate. Instead, it is divided into chunks called brackets, and each chunk is taxed at a different rate. The first dollars you earn are taxed at the lowest rate (10%), and only the dollars that exceed each threshold get taxed at the next rate up.
This is one of the most misunderstood aspects of the tax code. Moving into a higher bracket does not mean all your income is taxed at that rate — only the portion above the bracket's floor.
2026 Federal Tax Brackets
Single Filers| Rate | Income Range |
|---|
| 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% | $626,351+ |
Married Filing Jointly| Rate | Income Range |
|---|
| 10% | $0 - $23,850 |
| 12% | $23,851 - $96,950 |
| 22% | $96,951 - $206,700 |
| 24% | $206,701 - $394,600 |
| 32% | $394,601 - $501,050 |
| 35% | $501,051 - $751,600 |
| 37% | $751,601+ |
Head of Household| Rate | Income Range |
|---|
| 10% | $0 - $17,000 |
| 12% | $17,001 - $64,850 |
| 22% | $64,851 - $103,350 |
| 24% | $103,351 - $197,300 |
| 32% | $197,301 - $250,500 |
| 35% | $250,501 - $626,350 |
| 37% | $626,351+ |
Married Filing Separately| Rate | Income Range |
|---|
| 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 - $375,800 |
| 37% | $375,801+ |
Marginal vs Effective Tax Rate
Marginal Rate
Your marginal tax rate is the rate applied to your last dollar of income — the highest bracket your income reaches. If you earn $75,000 as a single filer, your marginal rate is 22%, because that is the bracket that covers income from $48,476 to $103,350. But most of your income is taxed below 22%.
Effective Rate
Your effective tax rate is the actual percentage of your total income that goes to federal tax. It is always lower than your marginal rate because the earlier brackets tax your income at lower rates. For example, a single filer earning $75,000 pays about $11,414 in federal tax — an effective rate of roughly 15.2%, even though the marginal rate is 22%.
Why the Difference Matters
The gap between marginal and effective rates explains why earning more never results in taking home less. A raise into a higher bracket only means the extra dollars are taxed at that rate — the rest of your income stays in the same brackets. Understanding this removes one of the most common fears people have about raises and promotions.