How federal income tax rates work
The federal government taxes your income using a progressive tax system, which means the rate you pay increases as your income increases. You do not pay one flat rate on all your earnings. Instead, your income is divided into brackets, and each bracket has its own tax rate — 10%, 12%, 22%, 24%, 32%, 35%, or 37% for 2024.
The key thing to understand: you only pay the higher rate on the income that falls into that higher bracket, not on all your income. If you earn $50,000 and the first $11,000 is taxed at 10%, the next $44,600 at 12%, and the remaining $39,400 at 22%, you calculate tax on each portion separately and add them together. You do not pay 22% on the full $50,000.
Tax brackets change every year because they are adjusted for inflation. The brackets also differ based on your filing status: single, married filing jointly, married filing separately, or head of household. Your filing status determines which bracket thresholds apply to you.
Key Takeaways
- Federal income tax uses seven tax rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — applied to different portions of your income based on tax brackets.
- Tax brackets change every year for inflation, so the income thresholds that trigger each rate are different in 2024 than they were in 2023.
- Your filing status (single, married filing jointly, head of household, or married filing separately) determines which bracket thresholds apply to your income.
- The tax rate you see reported as your "tax bracket" applies only to your last dollar of income, not to your entire income.
- Standard deductions and tax deductions reduce the amount of income that is actually taxed, so your taxable income is usually lower than your total earnings.
2024 tax brackets by filing status
The table below shows the 2024 federal income tax brackets. Find your filing status in the left column, then locate the income range that matches your taxable income. The rate in that row is the rate applied to income within that range.
| Filing Status | 10% Bracket | 12% Bracket | 22% Bracket | 24% Bracket | 32% Bracket | 35% Bracket | 37% Bracket |
|---|---|---|---|---|---|---|---|
| Single | $0–$11,600 | $11,601–$47,150 | $47,151–$100,525 | $100,526–$191,950 | $191,951–$243,725 | $243,726–$609,350 | $609,351+ |
| Married Filing Jointly | $0–$23,200 | $23,201–$94,300 | $94,301–$201,050 | $201,051–$383,900 | $383,901–$487,450 | $487,451–$731,200 | $731,201+ |
| Married Filing Separately | $0–$11,600 | $11,601–$47,150 | $47,151–$100,525 | $100,526–$191,950 | $191,951–$243,725 | $243,726–$365,600 | $365,601+ |
| Head of Household | $0–$16,550 | $16,551–$63,100 | $63,101–$100,500 | $100,501–$191,950 | $191,951–$243,700 | $243,701–$609,350 | $609,351+ |
These brackets apply to your taxable income, not your gross income. Taxable income is what remains after you subtract the standard deduction or itemized deductions from your total earnings. For 2024, the standard deduction is $14,600 for single filers, $29,200 for married filing jointly, $14,600 for married filing separately, and $21,900 for head of household.
How to calculate your tax using brackets
To see how brackets work in practice, here is an example. Suppose you are single, earned $60,000 in 2024, and take the standard deduction of $14,600. Your taxable income is $45,400.
Using the single filer brackets: the first $11,600 is taxed at 10% ($1,160). The next $35,550 (from $11,601 to $47,150) is taxed at 12% ($4,266). Your total federal income tax is $5,426. Your effective tax rate — the percentage of your total income that goes to federal tax — is about 9%, even though your top bracket is 12%.
This is why your "tax bracket" (the highest rate you pay) is different from your effective tax rate (the average rate across all your income). Most people pay a lower effective rate than their top bracket rate because only the income in the highest bracket is taxed at that rate.
What affects your tax bracket
Several things can move you into a higher or lower bracket. Earning more income obviously pushes you higher. But deductions also matter: if you itemize deductions instead of taking the standard deduction, or if you have deductible expenses like student loan interest or retirement contributions, your taxable income shrinks and you may drop into a lower bracket.
Your filing status also determines your brackets. Married couples filing jointly have wider brackets than single filers, which means a married couple can earn more before hitting the same tax rate. This is one reason why filing status is important on your tax return.
Some income is not subject to the regular tax brackets at all. Long-term capital gains and may have access to dividends are taxed at their own lower rates (0%, 15%, or 20%, depending on your income). Tax-exempt income, like interest from municipal bonds, does not count toward your taxable income at all.
Standard deduction versus itemized deductions
Before your income is taxed using the brackets, you subtract either the standard deduction or your itemized deductions — whichever is larger. The standard deduction is a fixed amount that depends on your filing status and age. For 2024, it ranges from $14,600 (single) to $29,200 (married filing jointly).
If your deductible expenses — mortgage interest, property taxes, charitable donations, medical expenses above a threshold — add up to more than the standard deduction, you may benefit from itemizing instead. Many people use the standard deduction because it is simpler and because the threshold for itemizing is high.
The standard deduction is higher if you are 65 or older or blind. For 2024, a single filer who is 65 or older gets a standard deduction of $17,550 instead of $14,600. This means more of your income is sheltered from tax.
Tax credits and withholding
Tax brackets calculate how much tax you owe, but tax credits reduce that amount dollar-for-dollar. A $1,000 tax credit lowers your tax bill by $1,000, which is more powerful than a $1,000 deduction (which only reduces your taxable income). Common credits include the Earned Income Tax Credit, the Child Tax Credit, and education credits.
Throughout the year, your employer withholds federal income tax from your paycheck based on the W-4 form you filled out. The withholding is an estimate meant to match your actual tax liability. If too much is withheld, you get a refund. If too little is withheld, you owe when you file. Adjusting your W-4 can help you get closer to zero refund or balance.
Frequently Asked Questions
What is the difference between tax brackets and my effective tax rate?
Your tax bracket is the highest rate applied to your income — for example, 22%. Your effective tax rate is the average rate you pay across all your income, which is usually lower because lower brackets apply to the first portions of your earnings. If you earn $60,000 and your top bracket is 22%, your effective rate might be 9% or 10%.
Do tax brackets change every year?
Yes. The IRS adjusts tax brackets annually for inflation, so the income thresholds that trigger each rate are different each year. The rates themselves (10%, 12%, 22%, etc.) stay the same, but the dollar amounts that define each bracket move up.
Does my filing status affect my tax brackets?
Yes. Single filers, married filing jointly, married filing separately, and head of household all have different bracket thresholds. Married couples filing jointly typically have wider brackets, which means they can earn more income before hitting the same tax rate as a single filer.
What income is not taxed using these brackets?
Long-term capital gains and may have access to dividends use their own lower tax rates (0%, 15%, or 20%). Tax-exempt income, like interest from municipal bonds or certain retirement distributions, does not count toward taxable income at all and is not subject to these brackets.
Can I lower my tax bracket by reducing my income?
You cannot lower your bracket by earning less, but you can reduce your taxable income through deductions and contributions to retirement accounts like a 401(k) or traditional IRA. Lowering your taxable income may move you into a lower bracket, which reduces the rate applied to your top dollars of income.