What Are Tax Brackets?
The United States uses a progressive tax system. This means you do not pay the same rate on every dollar — higher portions of your income are taxed at progressively higher rates. Your marginal rate is the rate applied to your last dollar of income. Your effective rate is the actual percentage of your total income paid in federal tax.
2026 Federal Tax Brackets (Single Filers)
| Taxable Income | Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Over $626,350 | 37% |
Brackets are adjusted annually for inflation by the IRS.
2026 Federal Tax Brackets (Married Filing Jointly)
| Taxable Income | Rate |
|---|---|
| $0 – $23,850 | 10% |
| $23,851 – $96,950 | 12% |
| $96,951 – $206,700 | 22% |
| $206,701 – $394,600 | 24% |
| $394,601 – $501,050 | 32% |
| $501,051 – $751,600 | 35% |
| Over $751,600 | 37% |
Marginal Rate vs Effective Rate: A Real Example
Suppose you are a single filer with $80,000 in taxable income.
- 10% on the first $11,925 = $1,192
- 12% on $11,926–$48,475 = $4,386
- 22% on $48,476–$80,000 = $6,935
- Total federal tax: $12,513
- Effective rate: 15.6% (not 22%)
Your marginal rate is 22%, but only the dollars above $48,475 are taxed at that rate.
How the Standard Deduction Works
Before brackets apply, the IRS subtracts the standard deduction from your gross income:
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
A single filer earning $95,000 in wages has a taxable income of $80,000 after the standard deduction — not $95,000.
Pre-Tax Deductions That Reduce Your Bracket
You can lower your taxable income — and potentially drop into a lower bracket — through:
- 401(k) contributions (up to $23,500 in 2026)
- HSA contributions ($4,300 single / $8,550 family)
- Traditional IRA contributions (up to $7,000)
- Dependent Care FSA (up to $5,000)
Every dollar contributed to a 401(k) reduces the income the IRS taxes. For someone in the 22% bracket, a $10,000 contribution saves $2,200 in federal tax alone.
State Income Tax Is Separate
Federal brackets do not include state income tax. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — charge no state income tax. California tops the list at 13.3% for high earners.
Use our calculator below to see your combined federal + state take-home pay based on your state and filing status.