Tax Brackets
See how the 2026 federal brackets tax your income in layers and why a raise never hurts.
TL;DR
- Tax your income in layers; each rate applies only to its
bracket. - Know your
marginalRatefor decisions and youreffectiveRatefor budgeting. - Lower your
taxableIncomewith pre-tax savings to shrink the top layer.
How Brackets Work
Progressive LayersIncome fills each bracket in order, and each layer has its own rate.
First $12,400 at 10%, next at 12%...Taxable IncomeBrackets apply after deductions, not to your full salary.
Gross income - deductions = taxableMarginal RateThe rate on your last dollar, and the one that guides decisions.
Top layer you reach = marginal rateEffective RateYour total tax as a share of income, always below the marginal rate.
Total tax / income = effective rate2026 Federal Brackets
SingleTaxable income thresholds for unmarried filers in tax year 2026.
10% up to $12,400
12% up to $50,400
22% up to $105,700
24% up to $201,775
32% up to $256,225
35% up to $640,600
37% above $640,600Married Filing JointlyThresholds for couples filing one combined return in 2026.
10% up to $24,800
12% up to $100,800
22% up to $211,400
24% up to $403,550
32% up to $512,450
35% up to $768,700
37% above $768,700Head of HouseholdWider low brackets than single for qualifying single parents and caregivers.
10% up to $17,700
12% up to $67,450Annual AdjustmentsRates stay the same, but every threshold rises with inflation.
New thresholds every yearLower Your Taxable Income
Traditional 401(k)Pre-tax contributions come straight off your top bracket.
Up to $24,500 in 2026Traditional IRAContributions may be deductible depending on income and workplace plan.
Up to $7,500 in 2026HSAHealth savings contributions lower taxable income if you have a qualifying plan.
$4,400 self / $8,750 familyLong-Term GainsInvestments held over a year use their own lower rate schedule.
0% / 15% / 20%, not 10%-37%Clear Up Bracket Myths
A Raise Never HurtsOnly the dollars above a threshold pay the higher rate.
$1,000 raise at 22% = $780 moreNot All at Top RateBeing in the 22% bracket does not mean you pay 22% overall.
22% bracket, ~12% effectiveDeductions Save Your RateA deduction is worth its size times your marginal rate.
$1,000 deduction x 22% = $220 savedCredits Beat DeductionsA credit cuts your tax bill dollar for dollar instead.
$1,000 credit = $1,000 savedTips
- Use your
marginalRateto value a deduction: a $1,000 traditional 401(k) contribution saves $220 if your top bracket is 22%. - Calculate your
effectiveRateby dividing total tax by income; it is the honest answer to how much tax you really pay.
Warnings
- Never turn down a raise to avoid a higher
bracket; only the dollars above the line pay the higher rate. - Do not reuse last year's
bracketthresholds for planning, since the IRS moves every line for inflation each year.
In Practice
Walk a single filer's income through each bracket to see marginal and effective rates side by side.
You are single, earn $85,000 in 2026, and take the $16,100 standard deduction.
- Find taxable income: $85,000 - $16,100 = $68,900.
- 10% layer: $12,400 x 10% = $1,240.
- 12% layer: ($50,400 - $12,400) x 12% = $4,560.
- 22% layer: ($68,900 - $50,400) x 22% = $4,070.
- Total tax: $1,240 + $4,560 + $4,070 = $9,870, or 11.6% of $85,000.
You are in the 22% bracket but pay about 11.6% overall.
Your bracket is your top rate, not the rate on all your income.
FAQ
Your marginal rate is the rate on your last dollar of income, the top layer you reach. Your effective rate is your total tax divided by your income, and it is always lower because your first dollars are taxed at 10% and 12%. Use the marginal rate for decisions and the effective rate for your budget.
Not from federal brackets. Moving into a higher bracket only raises the rate on the dollars above the threshold, so every extra dollar still leaves you with more after tax. A few benefits and credits do phase out as income rises, but the bracket system itself never punishes a raise.
The seven rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For a single filer, 10% covers taxable income up to $12,400, 12% runs to $50,400, and 22% runs to $105,700. Married couples filing jointly get thresholds roughly double those amounts.
Reduce your taxable income before the brackets apply. Traditional 401(k), traditional IRA, and HSA contributions all come off the top, and every dollar saved this way is taxed at zero instead of your marginal rate. Holding investments over a year also moves gains onto a separate, lower rate schedule.