A tax bracket is a range of income that is taxed at a specific rate within a progressive tax system. The United States uses seven federal tax brackets, ranging from 10% to 37%. Each bracket applies only to the portion of your income that falls within its range, not to your entire income. This progressive structure ensures that higher earners pay a larger percentage on their additional income while lower earners pay proportionally less.
The most common misconception about tax brackets is that moving into a higher bracket means all your income gets taxed at the higher rate. In reality, only the income above the bracket threshold is taxed at the new rate. A single filer earning $50,000 in taxable income pays 10% on the first $11,925, 12% on income from $11,925 to $48,475, and 22% only on the remaining $1,525 above $48,475.
| Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 |
| 37% | Above $626,350 |
Your marginal rate is the bracket applied to your last dollar of income. Your effective rate is the total tax divided by total income, which is always lower than your marginal rate. For a detailed breakdown, see our Federal Tax Brackets Guide or try any state calculator.