tax bracket
A tax bracket refers to the tax rate applied to a specific range of income. For example, a 12% tax rate may apply to income between certain thresholds. The U.S. federal income tax system is progressive, meaning tax rates increase as income rises. Lower portions of income are taxed at lower rates, while higher portions are taxed at higher rates. This means the bracket rate applies only to income within that bracket, not to a taxpayer’s entire income. For example, if a single filer earned $20,000 of taxable income in 2025, they would have to pay 10% on the first $11,925 and 12% on the remaining $8,075, not 12% on the full amount.
There are seven federal tax brackets for 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% bracket applies to income up to $12,400, the 12% bracket applies to income over $12,400 and up to $50,400, the 22% bracket applies to income over $50,400 and up to $105,700, the 24% bracket applies to income over $105,700 and up to $201,775, the 32% bracket is applied to income over $201,775 and up to $256,225, the 35% bracket applies to income over $256,225 and up to $640,600, and the 37% tax rate applies to any income that is over $640,600.
For married couples filing jointly, the bracket thresholds are generally double those for single filers, up to the 35% bracket. The 10% bracket applies to joint income up to $24,800, the 12% bracket applies to joint income over $24,800 and up to $100,800, the 22% bracket applies to income over $100,800 and up to $211,400 $206,700, the 24% bracket is applies to income over $211,400 and up to $403,550, the 32% bracket applied for income over $403,550 and up to $512,450, the 35% bracket applies to income over $512,450 and up to $768,700, and the 37% bracket applies to any income over $768,700. Separate filers and heads of household use different thresholds, which are available on the IRS website.
[Last reviewed in June of 2026 by the Wex Definitions Team]
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