Federal income tax rates are set by tax brackets, not a single percentage
The federal government does not tax all your income at one rate. Instead, your income is divided into brackets, and each bracket has its own tax rate. The rate increases as your income goes up — this is called a progressive tax system. For 2024, the federal rates range from 10% on the lowest bracket to 37% on the highest, but most people pay a blend of these rates because their income spans multiple brackets.
Your actual tax bill depends on three things: how much you earned, your filing status (single, married filing jointly, head of household, or married filing separately), and which bracket your income falls into. The income ranges for each bracket change every year to account for inflation, so the numbers shift annually.
Key Takeaways
- Federal tax brackets for 2024 range from 10% to 37%, with seven brackets total, and the brackets are different depending on whether you file as single, married filing jointly, or head of household.
- You do not pay the top rate on all your income — only the portion that falls into each bracket is taxed at that bracket's rate.
- The income ranges for each bracket change every year, so a rate that applied to $50,000 in 2023 may explore to a different income level in 2024.
- Your effective tax rate — the percentage of your total income you actually pay in federal tax — is always lower than your highest bracket rate.
The 2024 federal tax brackets for single filers
If you file as single, your income is taxed according to these brackets for the 2024 tax year (filed in 2025):
| Tax Rate | Income Range |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | $609,351 and above |
For example, if you earned $60,000 as a single filer, you would pay 10% on the first $11,600, then 12% on the next $35,550, then 22% on the remaining $12,850. You would not pay 22% on your entire $60,000 income.
Tax brackets for married filing jointly and head of household
Married couples filing jointly have wider income ranges at each bracket, which means they can earn more before moving into a higher tax rate. For 2024, a married couple filing jointly does not enter the 22% bracket until their income reaches $94,300, compared to $47,151 for a single filer. This is one reason why filing status affects your tax bill.
Head of household filers (usually a single parent who pays more than half the household expenses) have brackets that fall between single and married filing jointly. The exact ranges depend on your filing status, so if your situation changed during the year, you may need to recalculate which brackets explore to you.
How to calculate your tax using brackets
Start with your taxable income — this is your total income minus deductions. Most people use the standard deduction, which for 2024 is $14,600 for single filers and $29,200 for married filing jointly. If your income is below the standard deduction for your filing status, you owe no federal income tax.
Once you know your taxable income, find which bracket it falls into and calculate the tax on each portion. A simpler approach is to use tax software or a tax table, which does this math for you. The IRS publishes tax tables in Publication 17 and on its website, and most tax preparation software calculates your bracket automatically.
Your employer also estimates your bracket throughout the year and withholds tax from each paycheck. If too much is withheld, you get a refund; if too little is withheld, you owe money when you file.
Why your effective rate is lower than your highest bracket
Your effective tax rate is your total federal tax divided by your total income. It is always lower than the highest bracket you fall into because you only pay the higher rates on the income that actually falls in those brackets. A single person earning $60,000 might have a highest bracket of 22%, but their effective rate is closer to 13% because most of their income was taxed at 10% and 12%.
This is why people sometimes say they "moved into a higher tax bracket" but their take-home pay did not drop. The higher rate only applies to the new income above the bracket threshold, not to all your income.
How brackets change year to year
The IRS adjusts tax brackets every January to account for inflation. This means the income ranges shift, but the rates themselves (10%, 12%, 22%, and so on) stay the same. In 2024, most brackets were wider than in 2023, meaning you could earn more before moving into a higher tax rate. The IRS announces the new brackets in late fall of the previous year, so you can see 2025 brackets in November 2024.
If you are self-employed or have investment income, you may also owe self-employment tax (Social Security and Medicare) on top of your federal income tax. That is a separate calculation with its own rates and is not part of the income tax brackets.
Frequently Asked Questions
What is the difference between tax brackets and tax rates?
A tax bracket is a range of income taxed at a specific rate. A tax rate is the percentage applied to income in that bracket. You have seven brackets, but only one rate applies to each portion of your income.
Do I pay 37% on all my income if I earn $700,000?
No. Only the income above $609,350 is taxed at 37%. The income below that threshold is taxed at the rates for each bracket it falls into. Your effective rate would be much lower than 37%.
Why are the brackets different for married filing jointly?
Married couples filing jointly have wider brackets to account for two incomes combined. This prevents a couple from paying more tax than two single people with the same individual incomes would pay separately.
Do state income taxes use the same brackets?
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. You calculate state tax independently from federal tax.
When do the 2025 tax brackets come out?
The IRS typically announces the 2025 tax brackets in late November 2024. You can find them on the IRS website or in tax software updates in early 2025.