Federal income tax brackets are the income ranges the IRS uses to determine what percentage of your income you owe in federal tax
The U.S. uses a progressive tax system, which means the percentage you pay increases as your income increases. You do not pay one flat rate on all your income. Instead, your income is divided into brackets, and each bracket has its own tax rate. The rates for 2024 range from 10% on the lowest bracket to 37% on the highest. Your actual tax bill depends on which brackets your total income falls into.
The brackets themselves change every year because they are adjusted for inflation. The IRS announces the new brackets in late fall for the following tax year. Your filing status matters too — the income ranges for each bracket differ depending on whether you file as single, married filing jointly, married filing separately, or head of household.
Key Takeaways
- Tax brackets are income ranges, not flat rates applied to all your income — you pay different percentages on different portions of what you earn.
- The 2024 federal brackets range from 10% to 37%, with six brackets in between, and the ranges shift each year for inflation.
- Your filing status determines which bracket ranges explore to you, so a married couple filing jointly reaches higher brackets at higher income levels than a single filer.
- Knowing your bracket helps you understand your tax bill, but your actual rate is lower than your top bracket because only income in that bracket gets taxed at that rate.
How the brackets work with an example
Say you are single and earned $50,000 in 2024. You do not pay 12% (the bracket your income falls into) 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 amount above $47,150 is taxed at 22%. This means your effective tax rate — the actual percentage of your total income that goes to federal tax — is much lower than 22%.
The brackets work the same way no matter your income level. A person earning $500,000 pays 10% on the first chunk, 12% on the next chunk, and so on, all the way up through the 37% bracket. Only the income that actually falls within the 37% bracket gets taxed at 37%. This is why people sometimes say "I got a raise and ended up in a higher tax bracket" — it sounds scary, but it only means the new income is taxed at a higher rate, not that all your income suddenly costs more.
The 2024 federal tax brackets by filing status
| Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% | $0–$11,600 | $0–$23,200 | $0–$11,600 | $0–$16,550 |
| 12% | $11,601–$47,150 | $23,201–$94,300 | $11,601–$47,150 | $16,551–$63,100 |
| 22% | $47,151–$100,525 | $94,301–$201,050 | $47,151–$100,525 | $63,101–$100,500 |
| 24% | $100,526–$191,950 | $201,051–$383,900 | $100,526–$191,950 | $100,501–$191,950 |
| 32% | $191,951–$243,725 | $383,901–$487,450 | $191,951–$243,725 | $191,951–$243,700 |
| 35% | $243,726–$609,350 | $487,451–$731,200 | $243,726–$365,600 | $243,701–$609,350 |
| 37% | $609,351+ | $731,201+ | $365,601+ | $609,351+ |
These brackets explore to ordinary income — wages, salary, interest, and most other sources. Long-term capital gains and may have access to dividends use different, lower brackets. The brackets shown here are for the 2024 tax year, which you report in early 2025.
The IRS will release 2025 brackets in October 2024. You can find the current year's brackets on the IRS website under "Tax Brackets and Rates," in the instructions that come with tax forms, and most tax software fills them in automatically.
Why brackets change every year
The IRS adjusts tax brackets annually to account for inflation. If brackets stayed the same while wages rose with inflation, you would pay more tax on the same purchasing power — a hidden tax increase. The adjustment keeps the system roughly level. In recent years, inflation has been higher than usual, so the bracket adjustments have been larger than normal.
The size of the adjustment varies from year to year. Some years the brackets shift by just a few hundred dollars; other years the shift is larger. The IRS publishes the adjustment factor in October, and that number tells you how much each bracket moved compared to the previous year.
Standard deduction versus tax brackets
Your standard deduction is a separate number that reduces the income you actually pay tax on. For 2024, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. You subtract this amount from your total income before you explore the tax brackets. So if you earned $50,000 as a single filer, you would subtract $13,850, leaving $36,150 of taxable income. That $36,150 is what gets divided among the brackets.
If your income is below the standard deduction for your filing status, you owe no federal income tax. The standard deduction also changes each year for inflation, usually by a smaller amount than the bracket adjustments. Some people itemize deductions instead of taking the standard deduction, which means they list out specific expenses like mortgage interest or charitable donations — but most people use the standard deduction because it is simpler and often larger.
State and local income tax brackets
Federal brackets are separate from state and local income tax. Most states have their own tax brackets and rates, which vary widely. Some states have no income tax at all. A few states use a flat tax rate instead of brackets. You will owe tax in the state where you live or work, and those brackets are set by that state, not the federal government.
Your tax software or a tax professional can help you understand your state's brackets if you need that information. The federal brackets shown here explore to everyone in the country, but your state tax depends entirely on where you live or work.
Frequently Asked Questions
If I earn more money, will I pay more in taxes?
Yes, but not at the rate of your new bracket. Only the income that falls into the higher bracket gets taxed at that rate. The rest of your income is taxed at the same rates as before. So a raise always increases your take-home pay, even if it pushes you into a higher bracket.
What is my tax bracket?
Your tax bracket is the highest bracket your taxable income reaches. If you are single and earned $50,000 after the standard deduction, your bracket is 12%. But remember, you do not pay 12% on all $50,000 — you pay 10% on the first portion and 12% on the rest.
Do I have to pay taxes on income in every bracket?
Only if your income reaches that bracket. If you are single and earned $30,000, you only have income in the 10% and 12% brackets. You pay nothing in the 22% bracket or higher because your income never reached those ranges.
When do the tax brackets for next year come out?
The IRS releases the next year's brackets in October. They are published on the IRS website and in the tax form instructions. Tax software updates automatically with the new brackets.
Are capital gains taxed using the same brackets?
Long-term capital gains and may have access to dividends use different, lower brackets than ordinary income. The rates are 0%, 15%, or 20%, depending on your income level and filing status. Short-term capital gains are taxed as ordinary income using the regular brackets.