Tax Bracket

The range of income taxed at a specific rate. The US has 7 brackets from 10% to 37%. Only income within each bracket is taxed at that rate.

Full explanation

The US federal income tax system uses progressive brackets — your income is divided into ranges, each taxed at an increasing rate. For 2026 (single): 10% on $0-$12,400, 12% on $12,400-$50,400, 22% on $50,400-$105,700, 24% on $105,700-$201,775, 32% on $201,775-$256,225, 35% on $256,225-$640,600, 37% on income over $640,600. Common misconception: 'being in the 22% bracket' does NOT mean all your income is taxed at 22%. Only the portion above $50,400 is. This is why your effective tax rate is always lower than your marginal rate.

Source: IRS Revenue Procedure 2025-32 — Tax Brackets

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“How does tax bracketaffect my taxes?”

Tax education only. Source: IRS Revenue Procedure 2025-32 — Tax Brackets.