How Federal Tax Brackets Work
Learn how U.S. progressive federal income tax brackets work, and the difference between marginal and effective tax rates.
Progressive tax brackets in plain English
The federal income tax in the United States is progressive. That means taxable income is divided into layers, often called brackets. Each layer is taxed at its own rate. Moving into a higher bracket does not mean your entire income is taxed at the higher rate—only the dollars that fall into that bracket.
When someone says “I’m in the 22% tax bracket,” they usually mean their marginal rate: the rate that applies to their next dollar of taxable income. Their average rate across all taxable income—the effective tax rate—is typically lower.
Marginal rate vs. effective rate
Your marginal tax rate is the top statutory rate that applies to the last portion of your taxable income. Your effective tax rate is total tax divided by taxable income. Effective rate answers “what share of my taxable income went to federal income tax?” Marginal rate answers “how much tax would I owe on one more dollar?”
My Taxes shows both ideas visually: bracket-by-bracket tax on the results page, and year-over-year totals on the timeline. That makes it easier to see why a headline bracket rate is not the same as the share of income you actually pay.
Filing status changes the brackets
Federal bracket thresholds differ by filing status—Single, Married Filing Jointly, Married Filing Separately, and Head of Household. The same taxable income can produce different tax for different statuses because the width of each bracket changes.
Always choose the filing status that matches how you file (or expect to file) before comparing years or states in the calculator.
What brackets do not include
Federal income tax brackets apply to taxable income after deductions. They do not by themselves include Social Security or Medicare payroll taxes, state income tax, property tax, or sales tax. Credits can also reduce the tax you owe after brackets are applied.
Use My Taxes to explore the bracket math, then confirm credits and deductions with IRS instructions or a tax professional when you file.
Next step
Ready to run the numbers? Open the federal and state tax calculator and enter your tax year, taxable income, state, and filing status.
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My Taxes provides educational estimates from published U.S. federal and state income tax tables. It is not tax advice. See our Disclaimer for details.