Finance
Tax Bracket Calculator
Your marginal bracket applies to your next dollar earned; your effective rate is what you pay overall. Enter your income and filing status to see both for 2026, with a breakdown of tax paid in each bracket.
Quick answer: Federal brackets are progressive, so only the income within each bracket is taxed at that rate — your effective rate is always lower than your top (marginal) bracket.
| Bracket | Up to | Tax paid in this bracket |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $50,400 | $4,560 |
| 22% | $105,700 | $4,070 |
| 24% | $201,775 | $0 |
| 32% | $256,225 | $0 |
| 35% | $640,600 | $0 |
| 37% | ∞ | $0 |
How it works
1. Find your taxable income
Start with total income, subtract above-the-line adjustments, then subtract the standard deduction or itemized deductions. The result is your taxable income — the figure the brackets actually apply to. Most filers take the standard deduction, which is inflation-adjusted each year.
2. Fill the brackets from the bottom up
The 2026 federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Income is taxed in layers: the first dollars are taxed at 10%, the next layer at 12%, and so on. Only the income that falls inside a given bracket is taxed at that bracket's rate.
3. Compare your marginal and effective rates
Your marginal rate is the rate on your last dollar — the top bracket you reach. Your effective rate is total tax divided by total income, which is always lower because the early layers are taxed lightly. The calculator reports both so you can plan deductions and conversions around the right number.
Frequently asked questions
What's the difference between marginal and effective tax rate?
Your marginal rate is the bracket your last dollar falls into; your effective rate is your total tax divided by your income. Because brackets are progressive, your effective rate is always lower than your marginal rate.
Does being in a higher bracket mean all my income is taxed more?
No. Only the income within each bracket's range is taxed at that bracket's rate. Moving into a higher bracket only raises the rate on the dollars above the threshold.
Should I use the standard or itemized deduction?
Use whichever is larger. The 2026 standard deduction is $16,100 single / $32,200 married filing jointly. Itemize only if your mortgage interest, SALT, and charitable gifts exceed that.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate applied to your last dollar of income — the bracket you top out in — while your effective rate is your total tax divided by your total income. For example, a single filer in the 24% bracket might have an effective rate closer to 17%, because lower layers of income are taxed at 10%, 12%, and 22%.
What is the top federal tax bracket for 2026?
The top federal income-tax bracket for 2026 is 37%, the same top rate in effect since 2018. It applies only to taxable income above the highest threshold, and only to the dollars in that top layer — not to your entire income.
If I move into a higher tax bracket, is all my income taxed at that rate?
No. The U.S. uses a progressive, marginal system, so only the income that falls within the higher bracket is taxed at the higher rate. Earning one dollar more that pushes you into the next bracket raises the tax on that dollar, not on the income below it.
How does the standard deduction affect my bracket?
The standard deduction is subtracted before the brackets apply, so it lowers your taxable income and can keep you in a lower bracket. Because the first chunk of income is effectively tax-free, two people with the same gross income can land in different brackets depending on deductions.
Are tax brackets adjusted for inflation each year?
Yes. The IRS indexes the bracket thresholds and the standard deduction to inflation annually, which is why the 2026 thresholds are higher than prior years even though the rates (10% to 37%) are unchanged. This indexing helps prevent bracket creep from inflation alone.