How federal income tax brackets work
The US uses a marginal bracket system: each portion of your taxable income is taxed at the rate for the bracket it falls into, not your whole income at your top rate. Your standard deduction (larger if you’re 65 or older, or your itemized total if that’s larger) is subtracted from your gross income first to get taxable income.
The formula
deduction = itemize ? itemizedTotal : standardDeduction + (is65Plus ? additionalStandardDeduction : 0) taxableIncome = max(0, grossIncome − deduction) tax = sum over each bracket of: min(taxableIncome, bracketCeiling) − bracketFloor, times that bracket's rate effectiveRate = tax / taxableIncome marginalRate = rate of the bracket containing the last dollar of taxable income
2026 brackets — single: 10% to $12,400 · 12% to $50,400 · 22% to $105,700 · 24% to $201,775 · 32% to $256,225 · 35% to $640,600 · 37% above. Joint: 10% to $24,800 · 12% to $100,800 · 22% to $211,400 · 24% to $403,550 · 32% to $512,450 · 35% to $768,700 · 37% above.
Worked example
A married couple filing jointly has $250,000 of taxable income.
- 10% bracket: $24,800 × 10% = $2,480.
- 12% bracket: $76,000 × 12% = $9,120.
- 22% bracket: $110,600 × 22% = $24,332.
- 24% bracket (partial): $38,600 × 24% = $9,264.
- Total tax: $2,480 + $9,120 + $24,332 + $9,264 = $45,196.
Frequently asked questions (FAQ)
What's the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar of income — the bracket you land in. Your effective rate is your total tax divided by your taxable income, averaged across every bracket you passed through. Effective rate is almost always lower than marginal rate.
Did the tax brackets change for 2026?
The seven rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) stayed the same, but the income thresholds for each bracket increased for inflation, per Rev. Proc. 2025-32.
What's the 2026 standard deduction?
$16,100 for single filers, $32,200 for married filing jointly. Filers 65 or older get an additional $2,050 (single) or $1,650 per qualifying spouse (joint) on top of that, if not itemizing.
Does this include state tax or FICA?
No — this calculator covers federal income tax only. Check our paycheck calculators for take-home pay after state tax, Social Security, and Medicare withholding.