How tax brackets actually work
The US taxes income in layers. Each bracket's rate applies only to the slice of taxable income that falls inside it. Being "in the 22% bracket" means your last dollars are taxed at 22% — your first dollars are still taxed at 10% and 12%.
For a single filer in 2026, the first $12,400 of taxable income is taxed at 10%, income from $12,400 to $50,400 at 12%, and income from $50,400 to $105,700 at 22%. The table in the results shows every bracket for the filing status you choose and how much of your income lands in each one.
Marginal rate, effective rate, and the raise myth
Your bracket is your marginal rate: the tax on your next dollar. It tells you what a raise, a bonus or a deduction is worth. A $1,000 raise for someone in the 22% bracket adds $220 of federal income tax; a $1,000 traditional 401(k) contribution saves $220.
Crossing into a higher bracket never lowers your take-home pay, because only the income above the threshold is taxed at the higher rate. Your effective rate, total tax divided by income, is always lower than your bracket.
Taxable income is smaller than your salary
Brackets apply to taxable income, after deductions. Most people take the standard deduction — $16,100 for single filers in 2026, $32,200 for married couples filing jointly and $24,150 for heads of household — so a $75,000 salary is about $58,900 of taxable income for a single filer. Pre-tax retirement and HSA contributions lower it further.
Brackets are the same for income tax whatever the source of ordinary income, but they don't include Social Security and Medicare taxes, state income tax, or the separate lower rates on long-term capital gains and qualified dividends.
The formula
Tax = base tax for your bracket + bracket rate × (taxable income − bracket start)Taxable income = income − deductions- Base tax and bracket start come from the IRS 2026 tax rate tables (Rev. Proc. 2025-32)
- Base tax is the total tax on all the lower brackets
Example
- Single filer with a $75,000 salary and the $16,100 standard deduction: taxable income is $58,900.
- $58,900 is between $50,400 and $105,700, so this person is in the 22% bracket.
- Tax: $5,800 (the tax on the first $50,400) + 22% × (58,900 − 50,400) = 5,800 + 1,870 = $7,670.
- Effective rate on the $75,000 salary: 7,670 ÷ 75,000 = 10.23%. They could earn another $46,800 of taxable income before reaching the 24% bracket.
Frequently asked questions
What tax bracket am I in?
Find your taxable income — income minus deductions — in the table for your filing status. For a single filer in 2026, taxable income of $50,401 to $105,700 is in the 22% bracket; for married filing jointly, it's $100,801 to $211,400.
Will a raise push me into a higher bracket and cut my pay?
No. Only the part of your income above the bracket threshold is taxed at the higher rate. Everything below it is taxed exactly as before, so a raise always increases take-home pay.
Did the brackets change for 2026?
The seven rates (10% to 37%) stayed the same — the One Big Beautiful Bill Act made them permanent — but the income thresholds were adjusted for inflation. For example, the single 12% bracket now ends at $50,400.
What is the top tax bracket?
37%, on taxable income over $640,600 for single and head-of-household filers, $768,700 for married filing jointly, and $384,350 for married filing separately.
Does my bracket apply to capital gains?
Short-term gains are taxed at your ordinary rates. Long-term capital gains and qualified dividends use separate 0%, 15% and 20% rates, which this calculator doesn't apply.
Sources
Last reviewed for 2026. How we calculate.