Federal income tax rates depend on how much you earn and your filing status

The U.S. federal government uses a progressive tax system, which means the rate 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 you pay the rate assigned to each bracket only on the money that falls within it.

For example, if you are single and earn $50,000 in 2024, 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 into the 22% bracket. This is why your actual tax bill is lower than the highest bracket rate you reach.

Tax brackets change every year because they are adjusted for inflation. The rates themselves—10%, 12%, 22%, 24%, 32%, 35%, and 37%—stay the same, but the income ranges that trigger each rate shift annually.

Key Takeaways

  • Federal income tax uses seven brackets ranging from 10% to 37%, and you only pay each rate on income within that bracket, not on your entire income.
  • Your filing status—single, married filing jointly, married filing separately, or head of household—determines which bracket your income falls into.
  • Tax brackets adjust each year for inflation, so the income ranges that trigger each rate change annually.
  • Your actual tax rate (called your effective rate) is always lower than the highest bracket you reach because lower brackets explore to the first portions of your income.
  • State and local income taxes are separate from federal rates and vary widely depending on where you live.

The seven federal tax brackets and how they work

The Internal Revenue Service (IRS) sets seven federal income tax brackets each year. For the 2024 tax year, the rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The bracket you land in depends on your total income and your filing status.

If you are single, the 2024 brackets work like this: 10% on income up to $11,600; 12% on income from $11,601 to $47,150; 22% on income from $47,151 to $100,525; and so on, up to 37% on income over $578,100. If you are married and filing jointly, the income ranges are wider—for instance, the 12% bracket runs from $23,201 to $94,300—because two incomes are combined.

Head of household filers (usually single parents supporting dependents) have different bracket ranges than single filers, and married couples filing separately have the narrowest ranges. The IRS publishes updated brackets every January for the previous year's tax returns.

How your filing status affects your tax rate

Your filing status is one of the most important factors in determining your tax rate. The IRS recognizes four main statuses: single, married filing jointly, married filing separately, and head of household. Each status has its own set of bracket ranges.

Married couples filing jointly almost always pay less total tax than the same two people filing separately, because the bracket ranges are wider. A married couple filing jointly might not enter the 22% bracket until $100,525, while a single person enters it at $47,151. This is sometimes called the "marriage bonus."

Head of household status is available to unmarried people who pay more than half the household expenses and have a may have access to dependent living with them for more than half the year. Head of household brackets fall between single and married filing jointly, so they often result in a lower tax bill than filing as single.

Standard deduction and how it lowers your taxable income

Before the tax brackets explore, you subtract the standard deduction from your total income. This is a fixed amount set by the IRS each year that reduces the income you actually pay tax on. For 2024, the standard deduction is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for head of household filers.

This means if you are single and earn $50,000, you do not pay tax on all $50,000. You subtract $14,600, leaving $35,400 of taxable income. The tax brackets then explore only to that $35,400. If your income is below the standard deduction for your filing status, you may owe no federal income tax at all.

The standard deduction increases slightly each year for inflation. Some people instead itemize deductions (listing specific expenses like mortgage interest or charitable donations) if that total is higher than the standard deduction, but most people use the standard deduction because it is simpler and often larger.

State and local income taxes are separate from federal rates

Federal income tax is only part of the picture. Most states also charge income tax, and some cities do as well. State and local rates are completely separate from federal brackets and vary widely by location.

Some states have no income tax at all—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming charge no state income tax. Other states range from about 1% to over 13% depending on income level. A few states, like Illinois and Pennsylvania, use a flat rate rather than brackets.

If you live in a state with income tax, you will file both a federal return and a state return. Your employer withholds federal tax and state tax separately from your paycheck. When you file your taxes, you report both to the appropriate agencies.

How tax withholding from your paycheck works

Your employer does not wait until tax time to collect federal income tax. Instead, they withhold an estimated amount from each paycheck based on information you provide on Form W-4. This form asks about your filing status, number of dependents, and other income sources so your employer can estimate how much tax you will owe.

The amount withheld is meant to match your actual tax bill as closely as possible. If too much is withheld, you get a refund when you file your return. If too little is withheld, you owe money. You can adjust your withholding at any time by submitting a new W-4 to your employer—for instance, if you get married, have a child, or take a second job.

Self-employed people do not have an employer to withhold taxes, so they must pay estimated tax quarterly to the IRS. This means calculating what they expect to owe and sending it in four installments throughout the year.

Special situations that change your tax rate

Certain types of income are taxed differently than regular wages. Long-term capital gains (profits from selling stocks or property you held for more than a year) are taxed at lower rates: 0%, 15%, or 20% depending on your income level, rather than the regular brackets. may have access to dividends from stocks also use these lower rates.

If you have children or dependents, you may be able to claim the Child Tax Credit or other credits that reduce your tax bill directly. Credits are more valuable than deductions because they subtract from the tax you owe, not from your income. Some credits are refundable, meaning you can get money back even if you owe no tax.

Certain deductions also explore only to specific situations—for instance, student loan interest deduction, educator expense deduction, or self-employed health insurance deduction. These reduce your taxable income before the brackets explore.

Frequently Asked Questions

What is the difference between tax brackets and my actual tax rate?

Your tax bracket is the highest rate you pay, but your actual rate (effective tax rate) is lower because lower rates explore to the first portions of your income. If you are single and earn $60,000, you might be in the 22% bracket, but your effective rate might be around 8% because you paid 10% and 12% on the lower portions first.

Do I pay the same tax rate on all my income?

No. You pay 10% on the first portion of your income, then 12% on the next portion, then 22% on the next, and so on. You only pay the higher rates on income that actually falls into those brackets. This is why the progressive system is designed to be fairer—higher earners pay higher rates, but not on every dollar.

What happens if I earn income in two different states?

You generally file a return in each state where you earned income. Most states offer a credit for taxes paid to other states to avoid double taxation, but the rules vary. If you moved during the year or worked in multiple states, you may need to file part-year returns in each state.

Can I reduce my taxable income below the standard deduction?

If you itemize deductions instead of taking the standard deduction, you can reduce your taxable income further. However, most people find the standard deduction is larger than their itemized deductions, so they use the standard deduction instead. You choose whichever is higher for your situation.

Are Social Security benefits taxed at the same rate as wages?

Social Security benefits are taxed differently. Depending on your total income, between 0% and 85% of your benefits may be taxable. The calculation is complex and depends on your filing status and other income sources, so many retirees benefit from consulting a tax professional about this.