The federal income tax rate is not one number — it is a series of brackets that increase as your income rises
The U.S. federal government taxes income using a progressive tax system. This means different portions of your income are taxed at different rates. If you earn $50,000, you do not pay the same rate on every dollar. The first dollars you earn are taxed at a lower rate, and only the income above certain thresholds moves into higher brackets.
For 2024, there are seven federal tax brackets. The rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Which bracket applies to you depends on your total income and your filing status — whether you file as single, married filing jointly, head of household, or another category. The income ranges for each bracket change every year because they are adjusted for inflation.
Your marginal tax rate is the rate applied to your last dollar of income. Your effective tax rate is the average rate you pay on all your income combined. These are different numbers, and understanding the difference matters when you are deciding whether a raise or a side job is worth your time.
Key Takeaways
- Federal tax brackets are progressive, meaning you pay different rates on different portions of your income, not a single rate on everything you earn.
- Your marginal rate (the rate on your last dollar) is higher than your effective rate (your average rate across all income), and only the marginal rate changes when you earn more.
- Tax brackets adjust for inflation each year, so the income ranges that trigger each rate change annually.
- Your filing status — single, married filing jointly, head of household — determines which income thresholds apply to you.
How tax brackets actually work with an example
Suppose you are single and earned $50,000 in 2024. You do not pay 22% on all $50,000. Instead, the first $11,600 is taxed at 10%, the next portion up to $47,150 is taxed at 12%, and only the remaining amount above $47,150 is taxed at 22%. This layering is what "progressive" means.
If you earn a raise that pushes you to $55,000, you do not suddenly pay 22% on your entire income. You only pay 22% on the dollars above $47,150. The first $47,150 is still taxed at the lower rates. This is why a raise into a higher bracket does not wipe out your gain — you keep more than you lose.
Your effective tax rate in this scenario would be roughly 12% of your total $55,000 income, even though your marginal rate is 22%. The difference between these two numbers is important when you are calculating whether a job or side income is worth pursuing.
The seven federal tax brackets for 2024
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $17,400 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $17,401 to $66,550 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $66,551 to $100,525 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,701 to $609,350 |
| 37% | $609,351 and above | $731,201 and above | $609,351 and above |
These brackets apply to ordinary income — wages, salary, and self-employment income. Investment income, capital gains, and certain other types of income may be taxed at different rates. The brackets also shift each year based on inflation, so the income ranges you see here will be different in 2025.
Why your filing status matters
A married couple filing jointly has wider income brackets than a single person filing alone. This is sometimes called the "marriage bonus" — two people earning the same total income together will owe less tax if they file jointly than if they filed as single individuals. However, some couples face a "marriage penalty" if their incomes are similar and high.
Head of household status (which applies to unmarried people who pay more than half the costs of maintaining a home for themselves and a dependent) has its own bracket structure, usually falling between single and married filing jointly. If you are unsure which status applies to you, the IRS website has a filing status tool, or you can ask a tax preparer.
What federal tax brackets do not include
Federal income tax brackets do not account for deductions or credits. Your actual federal tax bill depends on your taxable income, which is your total income minus deductions. The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. Many people do not owe federal income tax at all because their income falls below the standard deduction.
Tax credits — such as the Earned Income Tax Credit or the Child Tax Credit — reduce your tax bill dollar-for-dollar after your tax is calculated. These can lower or eliminate your federal tax liability even if you have taxable income. Deductions and credits are separate from the bracket system but are equally important to understanding what you actually owe.
How to find your own tax bracket
To find your bracket, start with your expected income for the year and your filing status. Use the table above to locate the range your income falls into. That row shows your marginal tax rate. Remember this is not your effective rate — it is only the rate on your last dollar of income.
If your income varies or you have multiple income sources, add them together. If you are self-employed, you will also owe self-employment tax (Social Security and Medicare), which is separate from income tax and is not reduced by the standard deduction.
The IRS publishes updated brackets every January. If you are planning for the next year or comparing years, check the IRS website or a tax software provider for the current year's brackets, as they will be different from 2024.
Frequently Asked Questions
Does earning more money push me into a higher tax bracket and make me worse off?
No. Only the income above the bracket threshold is taxed at the higher rate. If a raise pushes you from $47,000 to $52,000, you do not pay 22% on all $52,000 — only on the $5,000 above $47,150. You keep the benefit of the raise, even though part of it is taxed at a higher rate than your previous income.
What is the difference between my marginal rate and my effective rate?
Your marginal rate is the tax rate on your last dollar of income — the rate in the bracket your total income falls into. Your effective rate is your total tax bill divided by your total income. For most people, the effective rate is significantly lower than the marginal rate because lower-income dollars are taxed at lower rates.
Do state and local taxes use the same brackets as federal tax?
No. Each state sets its own tax brackets and rates, and some states have no income tax at all. Local taxes vary by city and county. Your total tax bill includes federal, state, and local taxes, each calculated separately using their own bracket systems.
Why do tax brackets change every year?
The IRS adjusts brackets annually for inflation to prevent "bracket creep" — the situation where inflation pushes you into a higher bracket even though your real income has not increased. This adjustment keeps the tax system roughly stable year to year.
Do capital gains use the same tax brackets as regular income?
No. Long-term capital gains (profits from investments held over a year) are taxed at different rates: 0%, 15%, or 20%, depending on your income. These rates are lower than ordinary income brackets for most people. Short-term capital gains are taxed as ordinary income using the standard brackets.