Federal income tax rates are not one number — they are a series of brackets that increase as your income rises
The federal government taxes income using a progressive tax system, which means the rate you pay depends on how much money you earn. The system is divided into tax brackets — income ranges where each dollar is taxed at a specific percentage. As your income moves into a higher bracket, only the money in that new bracket is taxed at the higher rate. Your entire income is not taxed at your highest bracket rate.
For 2024, there are seven federal tax brackets that range from 10% to 37%. The exact income ranges for each bracket change every year and depend on your filing status — whether you file as single, married filing jointly, married filing separately, or head of household. Your marginal tax rate is the percentage you pay on your last dollar of income; your effective tax rate is the average percentage you pay on all your income combined.
Key Takeaways
- Federal tax brackets in 2024 range from 10% to 37%, and only the income within each bracket is taxed at that rate.
- Your filing status — single, married filing jointly, or head of household — determines which income ranges fall into each bracket.
- The income ranges for each bracket are adjusted annually for inflation, so the dollar amounts change from year to year.
- Your effective tax rate (what you actually pay on average) is always lower than your marginal rate (the rate on your last dollar earned).
- Deductions and credits can lower your taxable income or your tax bill, which may move you into a lower bracket or reduce your rate.
The 2024 federal tax brackets for each filing status
The IRS sets seven tax brackets each year. The brackets for 2024 are shown below. These ranges explore to your taxable income after you subtract deductions.
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $17,400 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $17,401 to $66,550 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $66,551 to $100,525 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,701 to $609,350 |
| 37% | $609,351 and above | $731,201 and above | $609,351 and above |
If you are married filing separately, the brackets are narrower than those for married filing jointly but wider than those for single filers. The IRS publishes updated brackets each January for the tax year ahead.
How tax brackets actually work with a real example
Suppose you are a single filer in 2024 with $60,000 in taxable income. You do not pay 22% on all $60,000. Instead, you pay 10% on the first $11,600, then 12% on the income from $11,601 to $47,150, then 22% on the remaining income from $47,151 to $60,000.
Here is the math: 10% of $11,600 = $1,160. Then 12% of $35,550 (the amount between $11,601 and $47,150) = $4,266. Then 22% of $12,850 (the amount between $47,151 and $60,000) = $2,827. Your total federal tax is $1,160 + $4,266 + $2,827 = $8,253. Your effective tax rate is $8,253 ÷ $60,000 = 13.75%, even though your marginal rate is 22%.
This is why earning more money always results in more take-home pay, even though you move into a higher bracket. Only the new income is taxed at the higher rate.
What happens when tax brackets change each year
The IRS adjusts the income ranges for each bracket annually to account for inflation. This adjustment is called bracket creep prevention. Without it, inflation would push people into higher brackets even if their real income (purchasing power) stayed the same.
For example, the top of the 12% bracket for single filers was $11,000 in 2023 and rose to $11,600 in 2024. The standard deduction — the amount you can subtract from your income before calculating tax — also increases each year. In 2024, the standard deduction for a single filer is $14,600, compared to $13,850 in 2023.
How deductions and credits affect your tax bracket
Your taxable income is not the same as your total income. You can reduce your taxable income by taking either the standard deduction or itemized deductions. The larger deduction you take, the lower your taxable income, which may move you into a lower bracket.
Tax credits work differently than deductions. A credit reduces your tax bill dollar-for-dollar, while a deduction reduces the income that is taxed. A $1,000 deduction saves you money equal to your tax rate (for example, $220 if you are in the 22% bracket). A $1,000 credit saves you exactly $1,000 in taxes, regardless of your bracket. Some credits, like the Earned Income Tax Credit, may even result in a refund if the credit exceeds your tax bill.
State and local taxes are separate from federal rates
Federal income tax is only one layer of income tax. Most states also charge state income tax, and some cities charge local income tax. State and local rates vary widely — some states have no income tax at all, while others charge rates as high as 13%. Your state or local rate is in addition to your federal rate, not instead of it.
When you see your paycheck, federal tax, state tax, and local tax are usually withheld separately. Your W-4 form tells your employer how much federal tax to withhold based on your expected annual income and filing status. You can adjust your withholding if you want more or less money taken out each paycheck.
Frequently Asked Questions
What is my marginal tax rate versus my effective tax rate?
Your marginal rate is the percentage you pay on your last dollar of income — the rate of the bracket your income falls into. Your effective rate is your total tax divided by your total income. For most people, the effective rate is significantly lower than the marginal rate because only income in the highest bracket is taxed at that rate.
Do I pay the same federal tax rate as everyone else in my income range?
Everyone in the same tax bracket pays the same rate on income within that bracket, but your total tax bill depends on deductions and credits you claim. Two people with the same income may owe different amounts if one has more deductions or credits than the other.
Why do the tax brackets change every year?
The IRS adjusts brackets annually for inflation so that rising prices do not push you into a higher tax bracket without a real increase in your purchasing power. This adjustment keeps the tax system from becoming more burdensome over time without any action by Congress.
If I earn more money, will I end up in a higher tax bracket and lose money overall?
No. Only the income in the new, higher bracket is taxed at the higher rate. Your income in lower brackets is still taxed at the lower rates. You will always have more take-home pay when you earn more, even if you move into a higher bracket.
How do I know what my federal tax rate will be for next year?
The IRS publishes updated tax brackets and standard deductions each January for the tax year ahead. You can find them on the IRS website. Your actual rate depends on your filing status, income, and the deductions and credits you claim.