Tax Bracket Calculator
Your "Tax Bill X-Ray" — see exactly how each dollar of income is taxed across federal brackets. Discover why your effective rate is always lower than your marginal rate.
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Tax bills demystified
16.7%
Average Effective Rate
Lower than you think
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IRS-sourced data
Tax Bracket Calculator
See exactly how your income is taxed
Total Tax
$7,949
Marginal Rate
22%
Effective Rate
10.6%
Disclaimer: This calculator provides estimates for educational purposes only. Based on 2025 federal tax brackets from IRS Revenue Procedure 2024-40. Consult with a qualified CPA for personalized tax advice.
How Federal Tax Brackets Really Work
The most common tax misconception: "If I'm in the 24% bracket, I pay 24% on all my income." That's not how it works. The U.S. uses a progressive tax system — each bracket only applies to the income within that range.
2025 Tax Brackets at a Glance
For 2025, there are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income thresholds vary by filing status. Married filing jointly has the widest brackets — roughly double the single filer thresholds.
What Changes in 2026 (TCJA Sunset)
The Tax Cuts and Jobs Act (TCJA) expires after 2025. Unless Congress acts, most brackets revert to higher pre-2018 rates. The current 12% becomes 15%, 22% becomes 25%, and 24% becomes 28%. This makes 2025 a critical year for tax planning — strategies like Roth conversions and income acceleration are more valuable now.
Frequently Asked Questions
What tax bracket am I in?
Your tax bracket is the highest marginal rate applied to your income. Enter your income above to see which bracket you fall into. Remember, only the income within each bracket is taxed at that rate — not your entire income.
Does all my income get taxed at my bracket rate?
No. The U.S. uses a progressive tax system. Only the income within each bracket range is taxed at that bracket's rate. For example, if you're in the 24% bracket, only the income above the 22% bracket threshold is taxed at 24%. Your effective rate is always lower than your marginal rate.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar of income — the highest bracket you reach. Your effective rate is your total tax divided by total income. The effective rate is always lower because of the progressive bracket structure.
How does filing status affect my tax brackets?
Filing status changes the income thresholds for each bracket. Married Filing Jointly has the widest brackets (roughly double single), meaning more income is taxed at lower rates. Head of Household falls between Single and MFJ.
Will tax brackets change in 2026 when TCJA expires?
Yes. The Tax Cuts and Jobs Act (TCJA) expires after 2025. Unless Congress acts, brackets will revert to pre-2018 rates, which are generally higher. The 12% bracket reverts to 15%, the 22% to 25%, and so on. This makes 2025 tax planning especially important.
Want to lower your effective rate?
This calculator shows your current tax picture. A CPA can identify deductions, credits, and timing strategies to reduce your effective rate by 3-5 percentage points.
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