A tax bracket is a range of incomes taxed at a particular rate. The U.S. uses a progressive system with 7 brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%).
Common Misconception
Moving into a higher bracket does NOT mean all your income is taxed at the higher rate. Only the income within that bracket is taxed at that rate. Your overall effective tax rate is always lower than your marginal (bracket) rate.
Example
A single filer earning $50,000 pays 10% on the first $11,925, 12% on $11,926–$48,475, and 22% on the remaining $1,525. Effective rate: ~13%.
2026 Federal Tax Brackets (Single Filer)
| Rate | Income Range |
|---|---|
| 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% | $626,350+ |
Marginal vs. Effective Rate
Your marginal rate is the bracket your last dollar of income falls into. Your effective rate is total tax paid divided by total income — always lower, since earlier dollars are taxed at lower rates first. This is why bracket tables can look scarier than the actual tax bill.