How to Read US Federal Income Tax Brackets: Marginal vs. Effective Rate (2026)
US federal income tax is progressive. Crossing into a higher bracket does not raise the rate on all your income — each slice of income is taxed at the rate of its own bracket. This article lays out the 2026 brackets and standard deductions and shows with an example how the marginal and effective rates differ. Figures follow IRS Rev. Proc. 2025-32.
1. 2026 brackets (on taxable income)
These brackets apply to taxable income — income after deductions — not to gross income.
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | up to $12,400 | up to $24,800 |
| 12% | up to $50,400 | up to $100,800 |
| 22% | up to $105,700 | up to $211,400 |
| 24% | up to $201,775 | up to $403,550 |
| 32% | up to $256,225 | up to $512,450 |
| 35% | up to $640,600 | up to $768,700 |
| 37% | over $640,600 | over $768,700 |
2. Standard deduction
For 2026 the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. If you do not itemize, you subtract it from gross income first to get taxable income.
3. Marginal vs. effective rate
- Marginal rate: the rate on your next dollar of income — the rate of the bracket your taxable income falls in.
- Effective rate: the tax you actually pay divided by your gross income. It is usually lower than the marginal rate because lower slices are taxed at lower rates.
4. Example: single filer earning $100,000
Taxable income = 100,000 − 16,100 = $83,900
- $12,400 × 10% = $1,240
- ($50,400 − $12,400) × 12% = $38,000 × 12% = $4,560
- ($83,900 − $50,400) × 22% = $33,500 × 22% = $7,370
Total federal income tax = $13,170
This filer's marginal rate is 22%, but the effective rate is 13,170 ÷ 100,000 ≈ 13.2%. Earning more does not suddenly tax your whole income higher — only the part above each threshold.
5. What this article and the calculator leave out
- Tax credits (children, education, etc.) and itemized deductions
- State, city and county income taxes
- Social Security and Medicare (FICA) — see our FICA explainer
- Self-employment tax and separate rates for investment income and capital gains
The US take-home pay calculator on this site applies the single-filer brackets and standard deduction above.
Source: IRS Rev. Proc. 2025-32