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US Federal Income Tax Brackets Explained
Marginal vs effective rates, the standard deduction, and why moving into a higher bracket never cuts your take-home pay.
8 min read · Reviewed February 2026
Brackets are marginal, not all-or-nothing
The single most misunderstood thing about US taxes is how brackets work. When people say they're 'in the 22% bracket', they often fear all their income is taxed at 22%. It isn't. Only the income that falls inside each bracket is taxed at that bracket's rate.
So a single filer in 2026 pays 10% on the first $12,400 of taxable income, 12% on the next slice up to $50,400, and 22% only on income above that — not on the whole amount. This is why a raise can never reduce your take-home: the higher rate only touches the extra dollars.
| Taxable income | Rate |
|---|---|
| Up to $12,400 | 10% |
| $12,400 – $50,400 | 12% |
| $50,400 – $105,700 | 22% |
| $105,700 – $201,775 | 24% |
| $201,775 – $256,225 | 32% |
| $256,225 – $640,600 | 35% |
| Over $640,600 | 37% |
Marginal rate vs effective rate
Your marginal rate is the rate on your last dollar earned — the top bracket you reach. Your effective rate is your total tax divided by your total income, and it's always lower because the early brackets tax you less.
For example, a single filer earning $90,000 might have a 22% marginal rate but an effective federal income-tax rate closer to 13–14%. Knowing the difference matters: decisions like overtime, a bonus or a 401(k) contribution are judged against your marginal rate, not your effective one.
The standard deduction comes first
Before any brackets apply, you subtract the standard deduction from your gross income. For 2026 that's $16,100 for single filers and $32,200 for married couples filing jointly. The result is your taxable income — the figure the brackets actually run on.
This is why low earners often pay little or no federal income tax: if your income is below the standard deduction, your taxable income is zero. It also means the brackets effectively start higher than they look once the deduction is accounted for.
Don't forget FICA and state tax
Federal income tax is only part of the story. FICA payroll taxes — 6.2% Social Security (up to a wage cap) and 1.45% Medicare — come out regardless of deductions, and most states add their own income tax on top.
That's why two people on the same salary can take home very different amounts depending on their state. Run your number through our US calculator to see federal, FICA and state combined.
Related
Frequently Asked Questions
+Does moving into a higher tax bracket reduce my take-home?
No. US brackets are marginal — only the income inside the higher bracket is taxed at that rate. Earning more always increases your take-home; a raise can never leave you worse off due to brackets.
+What's the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar (your top bracket). Your effective rate is total tax divided by total income, which is always lower because earlier income is taxed at lower rates.
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources (last reviewed June 2026). Always confirm with an official tax authority or a licensed adviser before making decisions.