Tax Bracket (Marginal Rate)
A range of taxable income taxed at a specific federal income-tax rate — the marginal rate is the rate on your last dollar of income, not the rate on your whole income.
A tax bracket is a slice of taxable income that the IRS taxes at a specific rate. The US federal system has seven brackets for 2026 — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — and your marginal rate is the rate that applies to the last dollar of taxable income. Crucially, the rate does not apply to all your income — only to the income inside that bracket.
The 2026 single-filer brackets (approximate):
- 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
Married filing jointly brackets are roughly double the single thresholds. Brackets are indexed to inflation each year.
The common confusion: “moving into the next bracket” never lowers take-home pay because only the income above the threshold is taxed at the higher rate. A worker earning $1 above the 22% bracket pays an extra $0.22 — nothing about the prior income changes.
Marginal rate is the right figure for “should I take this extra income / deduction / 401(k) contribution” decisions. Effective rate (total tax divided by total income) is what answers “what proportion of my income went to federal tax overall”. Use the federal income tax calculator to see both at any income level.
Published 10 May 2026