Your Income Details
Your Tax Summary
Tax Bracket Breakdown
How US Federal Income Tax Brackets Work
The United States uses a progressive tax system, meaning you don't pay your top rate on all your income — only on the portion that falls within each bracket. This is one of the most misunderstood concepts in personal finance. Being in the 22% bracket does NOT mean you pay 22% on everything you earn.
2026 Federal Tax Brackets — Single Filers
| Tax Rate | Taxable Income Range | Tax on This Bracket |
|---|---|---|
| 10% | $0 – $12,400 | Up to $1,240 |
| 12% | $12,401 – $50,400 | Up to $4,560 |
| 22% | $50,401 – $105,700 | Up to $12,166 |
| 24% | $105,701 – $201,775 | Up to $23,058 |
| 32% | $201,776 – $256,225 | Up to $17,424 |
| 35% | $256,226 – $640,600 | Up to $134,531 |
| 37% | Over $640,600 | 37¢ on every dollar above |
After the $16,100 standard deduction, taxable income is $58,900. You pay 10% on the first $12,400 ($1,240), 12% on $12,401–$50,400 ($4,560), and 22% on $50,401–$58,900 ($1,870). Total federal tax: $7,670. Effective rate: 10.2%. Marginal rate: 22%.
Marginal Rate vs Effective Rate
Your marginal tax rate is the rate applied to your last dollar of income — it's useful for decisions like "should I do a Roth or traditional 401(k)?" or "is this side income worth it?" Your effective tax rate is your total tax divided by your total income — it reflects what you actually pay on average, and is almost always much lower than your marginal rate.
How to Reduce Your Taxable Income Legally
- Maximize 401(k) contributions: Up to $24,500 in 2026 ($32,500 if age 50+) reduces your AGI dollar-for-dollar.
- Contribute to a Traditional IRA: Up to $7,000 ($8,000 if 50+) may be deductible depending on income.
- Use an HSA: Triple tax advantage — contributions deductible, grows tax-free, withdrawals tax-free for medical.
- Itemize if it beats the standard deduction: Mortgage interest, state taxes (up to $10,000 SALT cap), and charitable donations can push you over.
- Harvest tax losses: Selling investments at a loss offsets capital gains and up to $3,000 of ordinary income per year.