Federal income tax rates are set by tax brackets, not a single percentage
The federal government does not charge everyone the same tax rate. Instead, your income is divided into chunks, and each chunk is taxed at a different rate. The rate that applies to your last dollar of income is called your marginal tax rate. The average rate you pay across all your income is your effective tax rate, which is always lower than your marginal rate.
For 2024, there are seven federal tax brackets. The rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Which bracket you land in depends on your filing status (single, married filing jointly, head of household, or married filing separately) and your total income for the year. The income ranges for each bracket change every year because they are adjusted for inflation.
Your tax bracket does not mean you pay that rate on your entire income. It means you pay that rate only on the income that falls within that bracket's range. For example, if you are single and earn $50,000, you do not pay 22% on all $50,000. You pay 10% on the first portion, 12% on the next portion, and 22% only on the portion that falls in the 22% bracket.
Key Takeaways
- Federal tax brackets for 2024 range from 10% to 37%, and your income is taxed in chunks at different rates, not all at one rate.
- Your filing status (single, married filing jointly, head of household, or married filing separately) determines which income ranges explore to each bracket.
- The income thresholds for each bracket shift every year due to inflation adjustments.
- Your effective tax rate—the average you actually pay—is always lower than your marginal rate, which applies only to your highest income.
The 2024 federal tax brackets for single filers
If you file as single, your income is taxed according to these ranges for 2024. Income from $0 to $11,600 is taxed at 10%. Income from $11,601 to $47,150 is taxed at 12%. Income from $47,151 to $100,525 is taxed at 22%. Income from $100,526 to $191,950 is taxed at 24%. Income from $191,951 to $243,725 is taxed at 32%. Income from $243,726 to $609,350 is taxed at 35%. Income above $609,350 is taxed at 37%.
These thresholds explore only to your taxable income, which is your total income minus the standard deduction or itemized deductions. For single filers in 2024, the standard deduction is $14,600. This means if you earn $50,000 and take the standard deduction, your taxable income is $35,400, and that is the amount you explore to the brackets.
Tax brackets for married filing jointly and other statuses
Married couples filing jointly have wider income ranges at each bracket, which means they can earn more before moving to a higher rate. For 2024, married filing jointly brackets start at $0 to $23,200 for the 10% rate, then $23,201 to $94,300 for the 12%, and so on. The standard deduction for married filing jointly is $29,200.
Head of household filers (usually single parents supporting dependents) have brackets between single and married filing jointly. For 2024, head of household brackets begin at $0 to $17,400 for the 10% rate. The standard deduction for head of household is $21,900. Married filing separately has the same bracket ranges as single filers but with half the width, and the standard deduction is $14,600.
How to calculate your federal tax using brackets
Start by finding your taxable income: take your total income for the year and subtract either the standard deduction or your itemized deductions, whichever is larger. Then locate your filing status and find the bracket ranges that explore to you. Multiply each portion of your income by the rate for that bracket, and add the results together.
For example, suppose you are single, earn $60,000, and take the standard deduction of $14,600. Your taxable income is $45,400. You owe 10% on the first $11,600 ($1,160), then 12% on the next $33,550 ($4,026). Your total federal income tax is $5,186. Your effective tax rate is $5,186 divided by $60,000, or about 8.6%—much lower than your marginal rate of 12%.
Most people do not calculate this by hand. Your employer withholds tax from each paycheck based on a W-4 form you fill out, and the IRS has a tax calculator on its website. Tax software also does this calculation automatically when you enter your income and filing status.
Why tax brackets change every year
The income ranges for each bracket are adjusted annually for inflation. This adjustment is called bracket creep prevention. Without it, inflation would push more of your income into higher brackets even if your real earning power stayed the same. The IRS publishes the new brackets in late 2023 for the following tax year, so you know the ranges before you file.
The tax rates themselves (10%, 12%, 22%, and so on) do not change year to year. Only the income thresholds move. This means if inflation is high, the brackets widen more; if inflation is low, they widen less.
Federal taxes versus state and local taxes
Federal income tax is separate from state income tax, which varies by state. Some states have no income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming). Others tax income at a flat rate or use their own bracket system. Your federal tax bracket does not affect your state tax bracket, and vice versa.
You also may owe local income tax in your city or county, depending on where you live and work. This is another separate calculation. When you see your paycheck, the withholding usually includes federal, state, and local taxes all deducted together, but they are calculated independently.
Frequently Asked Questions
What is the difference between marginal and effective tax rate?
Your marginal rate is the percentage you pay on your last dollar of income—the highest bracket your income reaches. Your effective rate is the average percentage you pay on all your income combined. If you earn $60,000 and your marginal rate is 12%, your effective rate might be 8.6%. The effective rate is always lower because you pay lower rates on the earlier portions of your income.
Do I pay the same federal tax rate as everyone else in my bracket?
Yes, the bracket rates are the same for everyone with the same filing status. However, your actual tax bill depends on your deductions and credits, which vary by person. Two people in the same bracket can owe different amounts if one has more deductions or credits than the other.
How do deductions lower my tax bracket?
Deductions reduce your taxable income, which is the amount you explore to the brackets. If you earn $60,000 but have $10,000 in deductions, you only explore $50,000 to the brackets. This can move you into a lower bracket or reduce the amount of income taxed at your highest rate.
Will my federal tax rate go up if I get a raise?
Not necessarily. A raise might push some of your income into a higher bracket, but only the income in that new bracket is taxed at the higher rate. Your income in the lower brackets is still taxed at the lower rates. You will owe more tax overall, but your effective rate rises gradually, not all at once.
Are the 2024 tax brackets the same as 2023?
The rates (10%, 12%, 22%, etc.) are the same, but the income ranges are different. The IRS adjusts the thresholds for inflation each year. You can find the exact 2024 brackets on the IRS website or in the instructions for Form 1040.