Federal Income Tax Brackets

Federal Income Tax Brackets decide how much you’ll pay in federal income tax based on your taxable income and filing status. But here’s what most people get wrong: being in a higher federal tax bracket doesn’t mean all your income is taxed at that higher rate. The U.S. uses a progressive system, which means your income is taxed in layers across different income tax brackets, creating a marginal tax rate and a separate effective tax rate.

In this guide, you’ll learn how federal tax brackets work, how to find your federal income tax rate, and how the 2026 federal tax brackets compare to prior years. We’ll also break down the 2026 standard deduction, show clear examples to calculate your federal income tax, and answer common questions people search for about IRS tax brackets.

What Are Federal Income Tax Brackets?

Federal income tax brackets are IRS-defined income ranges that determine how much federal income tax you owe on each portion of your income, not on your total earnings at once. The IRS splits taxable income into layers, and each layer is taxed at a specific federal tax rate based on your filing status.

The U.S. uses a progressive tax system, meaning tax rates increase as income increases—but only on the dollars that fall into higher brackets. For example, if part of your income moves into a higher federal tax bracket, only that portion is taxed at the higher rate.

This is where the difference between a tax bracket (marginal tax rate) and an effective tax rate matters. Your marginal rate is the highest rate applied to your income, while your effective tax rate reflects the average percentage of tax you actually pay across all brackets—almost always lower.

How Federal Income Tax Brackets Work

Federal income tax brackets determine how each portion of your taxable income is taxed at different federal tax rates, rather than applying one flat rate to your entire income. The IRS uses a progressive tax system, meaning income is taxed in stages based on set income thresholds and your filing status. As your income increases, only the amount that falls into a higher federal income tax bracket is taxed at that higher rate. This structure directly affects your federal income tax rate, effective tax burden, and overall tax planning, making it essential to understand how IRS tax brackets actually work before estimating how much federal tax you owe.

Progressive Tax System Explained

Federal income tax brackets work like tiers. You don’t pick “one federal tax rate” for your whole income—your taxable income is split into slices, and each slice is taxed at the rate assigned to that range (the IRS calls these “layers”).

Here’s the step-by-step way the IRS tax brackets apply (using 2026 federal tax brackets thresholds the IRS published for single filers):

1. Start with taxable income (income after deductions like the 2026 standard deduction).
2. Tax the first slice at 10%: up to $12,400 (single).
3. Tax the next slice at 12%: income over $12,400 up to $50,400 (single). 
4. Tax the next slice at 22%: income over $50,400 up to $105,700 (single).
5. Keep going through higher brackets only if your taxable income crosses those thresholds.

Specific example (Single filer, taxable income = $80,000 in 2026):

• 10% on first $12,400 = $1,240
• 12% on next $38,000 ($50,400 − $12,400) = $4,560
• 22% on next $29,600 ($80,000 − $50,400) = $6,512

Total federal income tax (before credits) = $12,312.
Notice what happened: even though this taxpayer is “in the 22% federal tax bracket,” most of their income is still taxed at 10% and 12%.

Marginal Tax Rate vs Effective Tax Rate

The fastest way to stop getting misled by “tax bracket” headlines is to separate these two terms:

Using the $80,000 example above:

• Marginal tax rate: 22% (because the top slice falls in the 22% bracket)
• Effective tax rate: $12,312 ÷ $80,000 = ~15.4% (average rate actually paid)

That gap (22% vs ~15.4%) is why you can’t judge your federal income tax bill by your bracket alone.

Common misconceptions

• Myth: “If I move into a higher federal tax bracket, I’ll take home less.”
  Reality: Only the income above the threshold gets taxed at the higher rate—your earlier slices keep their lower rates.
• Myth: “My federal income tax rate is 22%, so I pay 22% on everything.”
  Reality: 22% is your marginal rate; your effective rate is usually lower because your first slices are taxed at 10% and 12% (and potentially reduced further by credits). 
• Myth: “Tax brackets are based on salary.”
  Reality: federal tax brackets apply to taxable income, which is after deductions (like the standard deduction) and certain adjustments.

Current Federal Income Tax Brackets (2026)

Below are the official 2026 federal income tax brackets used to calculate how your taxable income is taxed in the U.S. These IRS tax bracket thresholds are adjusted annually for inflation and apply to different filing statuses — a key factor in determining your federal income tax owed. The ranges below are the taxable income levels, after deductions such as the 2026 standard deduction, where each federal income tax rate applies.

2026 Federal Income Tax Brackets by Filing Status

Federal Income Tax Rates Explained

Understanding the federal income tax rate structure helps you see how progressive taxation impacts your tax bill, effective tax rate, and planning choices.

Breakdown of Each Federal Tax Rate

• 10% Rate: Applied to the lowest taxable income tier (e.g., up to $12,400 for single filers). This rate ensures basic income is taxed minimally and benefits lower-income taxpayers.
• 12% Rate: A common bracket for middle-income earners and first tier for many households after standard deduction adjustments.
• 22% Rate: Often where middle-income taxpayers see their marginal rate settle once basic thresholds are surpassed.
• 24% to 37% Rates: These brackets apply to higher taxable income levels. For example, the 37% federal tax rate is the highest marginal rate and only applies to top-earning taxpayers once income crosses that bracket’s threshold.

Each rate is a marginal federal tax rate, meaning it applies only to income within that specific bracket range. As your taxable income increases, you move progressively into higher brackets.

Who Typically Falls Into Each Bracket

• Lower brackets (10%–12%) — Early-career workers, part-time earners, retirees on fixed incomes, taxpayers with large deductions.
• Middle brackets (22%–24%) — Many salaried professionals, dual-income families, and small business owners after deductions.
• Higher brackets (32%–37%) — High-earning professionals, business owners, and investors with significant taxable income.

How Income Moves Between Brackets as Earnings Grow

As your taxable income increases year over year (after deductions like the 2026 standard deduction), only the next dollar of income enters a higher federal tax bracket. For example:

• If your taxable income rises from $85,000 to $95,000 as a single filer in 2026, only the incremental $10,000 is taxed at the next bracket’s rate (24%). The income below remains taxed at lower bracket rates (10%, 12%, 22%).
• This layered structure means your effective tax rate (average rate paid) will always be lower than your marginal tax rate (top bracket rate).

2026 Standard Deduction Explained

The standard deduction is the IRS-set dollar amount you can subtract from your income before the tax brackets apply. In plain terms: it’s the “automatic write-off” that lowers your taxable income, which is the number the federal income tax brackets actually use. So if your income is $90,000 and you take a $16,100 standard deduction, you’re taxed on $73,900—not $90,000.

What Is the Standard Deduction?

A fixed deduction that reduces taxable income (instead of itemizing).

Why it matters: Because your federal income tax rate is applied to taxable income in layers, the standard deduction can keep part of your income out of higher IRS tax brackets—and sometimes keep you in a lower bracket range.

2026 Standard Deduction Amounts

These amounts apply to tax year 2026 (returns typically filed in 2027).

2025 vs 2026 Federal Tax Brackets

This table shows tax brackets 2026 vs 2025 side-by-side (same 7 rates, updated income thresholds). The IRS adjusts bracket thresholds for inflation to reduce “bracket creep,” meaning you can earn slightly more and still fall into the same marginal federal tax bracket.

Side-by-side comparison

Inflation adjustments (what changed, specifically)

• The rates didn’t change (still 10% through 37%). What changed is the income cutoffs for each bracket. 
• The standard deduction increased, which also reduces taxable income for many taxpayers.

Who benefits most from the changes?

• People whose income increased modestly: higher thresholds can prevent them from drifting into a higher marginal federal income tax bracket. 
• Standard-deduction filers: a larger deduction lowers taxable income automatically.

Key takeaway: 2026 thresholds generally let you earn a bit more before higher federal tax rates apply.

How to Calculate Your Federal Income Tax

This is the exact sequence tax software follows—using federal income tax brackets 2026 and the standard deduction.

Example A — Single filer (2026):

1. Gross income: $95,000
2. Adjustments: $3,000 (example: deductible IRA contribution) →
3. AGI: $92,000
4. Minus 2026 standard deduction (Single): $16,100
5. Taxable income: $75,900
6. Tax owed using 2026 brackets (Single):
   
   • 10% on first $12,400 = $1,240
   • 12% on next $38,000 ($50,400 − $12,400) = $4,560
   • 22% on remaining $25,500 ($75,900 − $50,400) = $5,610
     Total federal income tax (before credits): $11,410

This is why “my federal tax bracket is 22%” doesn’t mean you pay 22% on all income—only the slice inside that bracket gets 22%.

Example B — Married Filing Jointly (2026):

1. Gross income: $160,000
2. Adjustments: $6,000 →
3. AGI: $154,000
4. Minus 2026 standard deduction (MFJ): $32,200
5. Taxable income: $121,800
6. Tax owed using 2026 brackets (MFJ):
   
   • 10% on first $24,800 = $2,480
   • 12% on next $76,000 ($100,800 − $24,800) = $9,120
   • 22% on remaining $21,000 ($121,800 − $100,800) = $4,620
     Total federal income tax (before credits): $16,220

Federal Tax Brackets vs State Income Tax

Federal income tax brackets apply nationwide because they’re set by the IRS and used to calculate your federal income tax on taxable income, regardless of where you live. The IRS publishes the official federal income tax rates and bracket thresholds by filing status each year. 

State income tax is separate. Your state may tax wages, business income, and other income in addition to federal tax—or it may not impose a state income tax at all. Kiplinger’s 2026 list of “no income tax” states includes Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming (with the reminder that some states make up revenue via sales/property taxes).

Why federal brackets still apply everywhere: even if your state has no income tax, you still file and pay federal income tax under the same IRS tax brackets.

Common Misconceptions About Federal Tax Brackets

Now let's discuss some common misconceptions about federal tax brackets and resolve them

“I lose money if I move to a higher bracket.” - No. Moving into a higher federal tax bracket only affects the dollars above that bracket’s cutoff. The dollars below keep their lower federal tax rates because the U.S. system is progressive. 

“All my income is taxed at my bracket rate.” - That’s mixing up your marginal tax rate (your top bracket rate on the next dollar) with your effective tax rate (your average rate across all bracket layers). Your effective rate is typically lower than your top bracket.

“Standard deduction applies after tax.”- The standard deduction reduces income before brackets are applied, because brackets apply to taxable income, not gross income.

IRS Tax Brackets and Official Sources

For federal income tax brackets, the IRS is the primary source for the official rates, bracket thresholds, and annual inflation adjustments.

Why brackets change yearly

Most years, the IRS updates bracket thresholds (and other tax items) to reflect inflation so taxpayers don’t drift into higher brackets just because prices and wages rose. The IRS explains that these inflation adjustments protect taxpayers from losing the value of certain benefits and are published annually.

How inflation impacts federal tax rates

In practice, inflation adjustments usually mean the tax rates stay the same (10%–37%), but the income cutoffs move upward, so you may be able to earn more before a higher marginal federal income tax rate applies.

Conclusion

Federal income tax brackets can feel confusing until you remember one key rule: the IRS taxes your taxable income in layers, not at a single rate. Your marginal bracket tells you the rate on your next dollar, while your effective tax rate shows what you actually pay on average. Use the standard deduction (or itemize if it’s higher) to reduce taxable income, then apply the bracket table to estimate your federal income tax accurately. If your income changes, revisit your withholding and deductions so you’re not surprised at filing time. A little planning can lower your tax bill legally.