How federal income tax works
The US taxes income progressively. You start with your gross income, subtract pre-tax contributions such as a traditional 401(k), then subtract either the standard deduction or your itemized deductions — whichever is larger. What's left is your taxable income, and that is what runs through the brackets.
Each bracket only taxes the slice of income that falls inside it. So even someone in the 37% bracket pays 10% on their first $12,400 of taxable income, 12% on the next slice, and so on. That's why your effective rate (total tax ÷ income) is always well below your marginal rate (your top bracket).
Worked example
A single filer earning $75,000 in 2026 subtracts the $16,100 standard deduction, leaving $58,900 of taxable income. The first $12,400 is taxed at 10% ($1,240), the next $38,000 at 12% ($4,560), and the last $8,500 at 22% ($1,870). Total federal income tax: $7,670 — an effective rate of about 10.2%, even though the marginal rate is 22%.
A married couple filing jointly on $150,000 subtracts $32,200, leaving $117,800 taxable. Their tax is $2,480 + $9,120 + $3,740 = $15,340, also about 10.2% effective.
2026 federal tax brackets
| Rate | Single | Married jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Taxable income ranges. Source: IRS Rev. Proc. 2025-32 / IR-2025-103 (tax year 2026 inflation adjustments, incl. One Big Beautiful Bill amendments).
What changed for 2026
The 2025 tax law (the “One Big Beautiful Bill”) made the seven-bracket structure permanent, so the rates themselves didn't change. The IRS raised the bracket thresholds and standard deduction for inflation: the single standard deduction rose to $16,100 and the joint deduction to $32,200.
What this includes & its limits
- Federal income tax on ordinary income for single, married-filing-jointly and head-of-household filers.
- Does not include tax credits (e.g. the Child Tax Credit), capital-gains rates, AMT, self-employment tax, or the extra deductions for age 65+.
- Does not include state or local income tax, Social Security or Medicare — see the paycheck calculator for payroll taxes.
Frequently asked questions
This calculator is an estimate for general guidance and is not tax advice. For your actual return, use IRS forms and instructions or a qualified tax professional.