Federal income tax rates are set by Congress and change based on how much money you earn
The federal government taxes your income using a system called tax brackets. Each bracket is a range of income that gets taxed at a specific percentage rate. The rates themselves — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — are fixed by law. What changes year to year is the income range that falls into each bracket, because Congress adjusts these ranges for inflation.
Your tax bracket does not mean you pay that rate on all your income. Instead, you pay the lower rate on the lower portion of your income and the higher rate only on the portion that falls into the higher bracket. This is called progressive taxation. For example, if you are single and earn $50,000 in 2024, you do not pay 22% on the whole amount — you pay 10% on the first portion, then 12% on the next portion, then 22% only on the amount above a certain threshold.
Key Takeaways
- The seven federal tax rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) explore to different portions of your income, not your entire income.
- The income ranges for each bracket change every year based on inflation and are different for single filers, married filing jointly, married filing separately, and head of household.
- Your marginal tax rate is the highest bracket your income reaches; your effective tax rate is the average rate you pay on all your income combined.
- Standard deductions and tax deductions reduce the amount of income that gets taxed, which can move you into a lower bracket.
- The IRS publishes updated bracket ranges each year, usually in October or November for the following tax year.
The seven tax brackets and how they work
Congress has set seven federal income tax rates. The lowest is 10% and applies to the first portion of income for all filers. As your income increases, each additional dollar is taxed at the next bracket rate until you reach the top rate of 37%. The specific dollar amounts where each bracket begins and ends vary by filing status and change annually.
For 2024, the bracket ranges are different depending on whether you file as single, married filing jointly, married filing separately, or head of household. A single filer and a married couple filing jointly will have different income thresholds for the same tax rate. The IRS publishes these ranges in the tax year before they explore — for example, 2024 bracket ranges were published in late 2023.
The 10% bracket is the smallest range and applies to the lowest earners. Each subsequent bracket covers a wider income range. The 37% bracket, the highest, applies to all income above a certain threshold that varies by filing status. No matter your income level, you will pay 10% on the portion that falls in the 10% bracket.
Marginal rate versus effective rate
Your marginal tax rate is the percentage you pay on your last dollar of income — the highest bracket your income reaches. Your effective tax rate is the average percentage you pay on all your income combined. These are not the same number, and understanding the difference matters when you are deciding whether a raise or additional income is worth it.
If you are single and earn $60,000, your marginal rate might be 22%, meaning the last portion of your income is taxed at 22%. But your effective rate — the total tax you owe divided by your total income — will be lower, perhaps around 10% or 11%, because the earlier portions of your income were taxed at 10% and 12%. A common mistake is thinking a raise that pushes you into a higher bracket means all your income gets taxed at that higher rate. It does not. Only the income above the bracket threshold is taxed at the new rate.
How deductions affect which bracket you fall into
Before the IRS applies tax brackets to your income, you subtract either the standard deduction or your itemized deductions. This reduces your taxable income — the amount that actually gets taxed. A larger deduction means a lower taxable income, which can move you into a lower tax bracket.
The standard deduction varies by filing status and changes each year for inflation. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly, though these amounts are higher if you are 65 or older. If you have significant deductible expenses — mortgage interest, charitable donations, state and local taxes — you may benefit from itemizing instead of taking the standard deduction. Either way, the deduction comes off the top of your income before brackets explore.
This is why two people earning the same gross income can owe different amounts of tax. If one person has a mortgage and donates to charity, their itemized deductions might be larger than the standard deduction, lowering their taxable income further. The other person takes the standard deduction. Both pay the same bracket rates, but on different amounts of income.
When and how the IRS updates tax brackets
Congress does not change the seven tax rates themselves very often — the current rates have been in place since 2018. What changes annually is the income range for each bracket. The IRS adjusts these ranges each year based on inflation, using a measure called the chained consumer price index. This adjustment means the brackets gradually shift upward, so you do not move into a higher bracket straightforward because of inflation.
The IRS announces the updated bracket ranges, standard deduction amounts, and other tax figures in October or November of the year before they take effect. For example, 2025 bracket ranges were announced in October 2024. You can find these figures on the IRS website under "Tax Brackets and Rates" or in the instructions that come with your tax form.
How filing status changes your brackets
The income thresholds for each tax bracket are different depending on your filing status. Single filers have one set of bracket ranges. Married couples filing jointly have higher income thresholds for each bracket, which means they can earn more before moving into a higher rate. Married filing separately uses narrower ranges, and head of household falls between single and married filing jointly.
This is one reason filing status matters beyond just your personal situation. A married couple filing jointly can earn significantly more than a single person before reaching the 37% bracket. The difference between filing as single versus head of household can also be substantial. If your filing status changes — for example, you marry or divorce — your bracket ranges change for that tax year and all future years.
Federal tax brackets for 2024 by filing status
| Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351+ | $731,201+ | $365,601+ | $609,351+ |
Frequently Asked Questions
Does a higher tax bracket mean I pay that rate on all my income?
No. You only pay the higher rate on the income that falls within that bracket. If you earn $60,000 as a single filer and the 22% bracket starts at $47,151, you pay 10% on the first $11,600, 12% on the next portion, and 22% only on the amount above $47,151. Your effective rate across all your income is much lower than 22%.
Will I owe more tax if I get a raise that moves me into a higher bracket?
You will owe more tax on the additional income, but only at the higher bracket rate, not on your entire paycheck. If a $5,000 raise pushes you into the next bracket, you pay the new rate only on that $5,000 (or the portion of it in the new bracket). The rest of your income is taxed at the same rates as before.
How do I find out what tax bracket I am in?
Calculate your taxable income by subtracting the standard deduction (or itemized deductions) from your gross income. Then find your filing status in the bracket table and locate the range your taxable income falls into. That range shows your marginal tax rate. The IRS website and most tax software also calculate this for you.
Do state income taxes use the same brackets as federal taxes?
No. State income tax brackets are set by each state and are completely separate from federal brackets. Some states have no income tax at all. Your federal tax bracket and your state tax bracket are independent of each other, and you owe both (unless you live in a state with no income tax).
What happens to tax brackets if Congress changes the tax rates?
If Congress passes a new tax law that changes the rates themselves, the brackets would be rewritten. This is rare — the current seven rates have been in effect since 2018. More commonly, Congress adjusts the income ranges within the existing rates, or the IRS adjusts them for inflation each year.