What Are Tax Brackets?
The US uses a progressive tax system — as your income rises, higher portions of it are taxed at higher rates. The rates for 2025 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
A common misconception: moving into a higher bracket does not mean all your income is taxed at the new rate. Only the dollars above each threshold get taxed at the higher rate.
2025 Federal Tax Brackets
Single Filers:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Over $626,350 | 37% |
Married Filing Jointly:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $23,850 | 10% |
| $23,851 – $96,950 | 12% |
| $96,951 – $206,700 | 22% |
| $206,701 – $394,600 | 24% |
| $394,601 – $501,050 | 32% |
| $501,051 – $751,600 | 35% |
| Over $751,600 | 37% |
Taxable Income vs. Gross Income
Before applying brackets, you subtract the standard deduction: $15,000 (single) or $30,000 (married) in 2025. So a single filer earning $60,000 has taxable income of $60,000 − $15,000 = $45,000.
Marginal vs. Effective Rate
- Marginal rate: The rate on your last dollar (your “bracket”) — e.g., 22%
- Effective rate: Total tax ÷ gross income — always lower, e.g., 12.3%
The effective rate is what you actually pay as a percentage of your income.
Example Calculation
A single filer earning $75,000 gross:
- Taxable income: $75,000 − $15,000 = $60,000
- 10% on first $11,925 = $1,193
- 12% on $11,926–$48,475 = $4,386
- 22% on $48,476–$60,000 = $2,535
- Total federal tax: $8,114 (effective rate: 10.8%)
Use our Paycheck Calculator to instantly see your federal tax for any income level.