Federal Income Tax

Federal Income Tax Brackets, Explained Like You're Five

Most Americans think "I'm in the 24% bracket" means "24% of my income goes to taxes." That's not how it works — and the difference can be thousands of dollars.

What a tax bracket really means

The US uses a progressive tax system. That means your income is sliced into chunks, and each chunk is taxed at its own rate. Only the income that falls inside a specific bracket is taxed at that bracket's rate — not all of it.

Think of it like filling buckets. The first bucket fills up at 10%. Once it's full, the next dollar starts filling the 12% bucket. And so on.

2024 federal brackets at a glance

These are the brackets that apply to income earned in 2024 (the return you file in early 2025):

RateSingleMarried Filing JointlyHead of Household
10%$0 – $11,600$0 – $23,200$0 – $16,550
12%$11,600 – $47,150$23,200 – $94,300$16,550 – $63,100
22%$47,150 – $100,525$94,300 – $201,050$63,100 – $100,500
24%$100,525 – $191,950$201,050 – $383,900$100,500 – $191,950
32%$191,950 – $243,725$383,900 – $487,450$191,950 – $243,700
35%$243,725 – $609,350$487,450 – $731,200$243,700 – $609,350
37%$609,350+$731,200+$609,350+

Marginal vs effective rate

Your marginal rate is the rate on your next dollar of income. Your effective rate is the total tax you actually pay, divided by your total taxable income. The effective rate is almost always lower.

Example: a single filer with $75,000 of taxable income is "in the 22% bracket." Their actual federal income tax is roughly $11,807 — an effective rate of about 15.7%.

Don't forget the standard deduction

Brackets apply to taxable income, not gross income. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Subtract that first.

Quick check: A single filer earning $60,000 in wages has $45,400 of taxable income after the standard deduction. That puts them mostly in the 12% bracket.

How this affects raises and bonuses

"Moving into the next bracket" never costs you money overall. Only the dollars above the threshold are taxed at the higher rate. A $1,000 raise that pushes you from 22% to 24% still leaves you with $760 — not $0.

Try the math yourself

Run your own numbers with our free federal income tax calculator. It uses the brackets above and applies the standard deduction automatically.

Run your own numbers

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