Income tax brackets are the ranges of income that are taxed at different rates
The federal government taxes income in layers, not all at one rate. If you earn $50,000, you do not pay the same percentage on every dollar. Instead, your first dollars are taxed at a lower rate, and as your income climbs into higher ranges, those additional dollars are taxed at higher rates. These ranges are called tax brackets. The rate that applies to each bracket is called the marginal tax rate.
For 2024, there are seven federal tax brackets for individual filers, ranging from 10% to 37%. The brackets change each year because they are adjusted for inflation. Your state may also have its own income tax brackets, which operate the same way but at different rates and ranges. Some states have no income tax at all.
Understanding brackets matters because it tells you what portion of a raise or bonus will actually reach your pocket after taxes, and it helps you plan for tax time. Many people misunderstand brackets and think moving into a higher one means all their income gets taxed at that higher rate — it does not.
Key Takeaways
- Tax brackets are income ranges, and each range has its own tax rate; only the income within that range is taxed at that rate.
- The 2024 federal brackets for single filers range from 10% on the first portion of income to 37% on income above $191,950.
- Brackets are adjusted annually for inflation, so the dollar amounts change each year even if the rates stay the same.
- Your filing status (single, married filing jointly, head of household) determines which bracket table applies to you.
- State income tax brackets are separate from federal brackets and vary widely by state, including states with no income tax.
How the bracket system actually works with an example
Suppose you are a single filer in 2024 and earn $60,000. The federal brackets for single filers that year are: 10% on income up to $11,600; 12% on income from $11,601 to $47,150; 22% on income from $47,151 to $100,525; and higher rates above that. You do not pay 22% on all $60,000. Instead, you pay:
- 10% on the first $11,600 = $1,160
- 12% on the next $35,550 ($47,150 − $11,600) = $4,266
- 22% on the remaining $12,850 ($60,000 − $47,150) = $2,827
Your total federal tax is $8,253, which is about 13.8% of your income. That 13.8% is your effective tax rate — the average rate you pay across all your income. Your marginal rate — the rate on your last dollar earned — is 22%. This distinction matters when you are deciding whether to take a raise or a second job: you will pay the marginal rate (22%) on that new income, not the effective rate (13.8%).
The 2024 federal tax brackets by filing status
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0–$11,600 | $0–$23,200 | $0–$17,400 |
| 12% | $11,601–$47,150 | $23,201–$94,300 | $17,401–$65,550 |
| 22% | $47,151–$100,525 | $94,301–$201,050 | $65,551–$131,200 |
| 24% | $100,526–$191,950 | $201,051–$383,900 | $131,201–$212,500 |
| 32% | $191,951–$243,725 | $383,901–$487,450 | $212,501–$243,700 |
| 35% | $243,726–$609,350 | $487,451–$731,200 | $243,701–$609,350 |
| 37% | $609,351+ | $731,201+ | $609,351+ |
These are the federal brackets for the 2024 tax year. Your filing status determines which column applies to you. Married couples filing jointly have wider brackets than single filers, which means more income falls into lower tax rates. Head of household status (usually for unmarried people supporting dependents) falls between the two.
These numbers are set by Congress and adjusted each year for inflation. The rates themselves — 10%, 12%, 22%, and so on — have remained the same since 2018, but the dollar ranges shift upward annually. For the 2025 tax year, the ranges will be slightly higher, though the rates stay the same.
State income tax brackets vary widely or do not exist
Forty-one states and the District of Columbia have their own income tax. Nine states have no income tax at all: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes only investment income). The remaining states have brackets similar to the federal system, with their own rates and ranges.
Some states have just two or three brackets; others have as many as twelve. California's top rate is 13.3%, while some states cap out at 5% or lower. A few states use a flat tax, meaning one rate applies to all income regardless of how much you earn. You owe state tax based on where you live or where you work, depending on state law. If you move during the year or work in a state different from where you live, you may owe tax to both.
Your total tax burden is federal plus state plus local (if your city or county has income tax). A person earning $60,000 in California pays federal tax plus California state tax, while someone earning the same amount in Texas pays only federal tax. This is why location matters for take-home pay.
How brackets change year to year
The IRS adjusts federal tax brackets each January to account for inflation. If inflation was 2.4% in the prior year, the bracket ranges shift up by roughly 2.4%, but the rates themselves do not change. This adjustment is called bracket creep prevention. Without it, inflation would push people into higher brackets even though their real income (purchasing power) stayed the same.
You can find the current year's brackets on the IRS website (irs.gov) or on your state tax authority's website. Tax software and payroll systems update automatically each year. If you are self-employed or have investment income, you should check the brackets before the year ends so you can estimate your tax bill and plan for payments.
Why your withholding may not match your bracket
Your employer withholds federal income tax from each paycheck based on the W-4 form you filled out. That withholding is an estimate meant to land close to what you will owe at tax time. It is not the same as your actual tax bracket. If you withhold too little, you will owe money in April. If you withhold too much, you get a refund.
Your withholding depends on your income, filing status, number of dependents, and any extra amounts you request. Two people in the same tax bracket can have very different withholding if they have different family situations or if one asked their employer to withhold extra. The W-4 form lets you adjust this. If you got a large refund last year, you can claim more allowances to reduce withholding. If you owed money, you can reduce allowances or request extra withholding.
Frequently Asked Questions
If I move into a higher tax bracket, do I pay that rate on all my income?
No. You only pay the higher rate on the income that falls into that bracket. The income in lower brackets is still taxed at the lower rates. This is why earning more money always results in more take-home pay, even though your tax rate goes up.
Are state tax brackets the same as federal brackets?
No. Each state sets its own brackets, rates, and ranges. Some states have no income tax. Even states with income tax have different numbers than the federal system. You owe both federal and state tax (unless you live in a no-income-tax state), and they are calculated separately.
Do tax brackets change every year?
The rates (10%, 12%, 22%, etc.) stay the same, but the dollar ranges adjust each January for inflation. This means the income thresholds shift upward, but the percentage rates do not. Congress would have to pass new legislation to change the rates themselves.
What is the difference between my effective rate and my marginal rate?
Your effective rate is your total tax divided by your total income — the average percentage you pay. Your marginal rate is the percentage you pay on your last dollar earned. When you earn extra income, you pay your marginal rate on it, not your effective rate. This matters for decisions about raises or side work.
How do I know what my withholding should be?
Use the IRS withholding calculator on irs.gov, or adjust your W-4 form with your employer. If you got a large refund last year, you are withholding too much. If you owed money, you are withholding too little. You can change your W-4 any time during the year.