Tax Bracket
taxAlso known as: tax bracket, income bracket
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
A common misconception: people think moving "into a higher bracket" causes ALL their income to be taxed at the higher rate. Actually only the portion of income inside that bracket is taxed at the bracket rate. For 2026 single filer, $100K taxable income: first $11,925 at 10%, next $36,550 at 12%, next $51,525 at 22%. Total tax ~$17,400 — effective rate 17.4%, marginal rate 22%. Tax brackets are inflation-indexed annually per IRS Rev Proc. Each filing status (single, MFJ, MFS, HoH) has its own bracket schedule.
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Related tax terms
Adjusted Gross Income (AGI)
Adjusted Gross Income (AGI) is your total gross income minus specific "above-the-line" deductions like contributions to ...
Modified Adjusted Gross Income (MAGI)
Modified Adjusted Gross Income (MAGI) is your AGI plus certain deductions added back, used to determine eligibility for ...
Standard Deduction
The standard deduction is a fixed dollar amount that reduces your taxable income. For 2026, it's $16,100 single, $32,200...
Marginal Tax Rate
Your marginal tax rate is the rate applied to your last dollar of taxable income — the bracket your highest-earning doll...
Effective Tax Rate
Your effective tax rate is your total tax liability divided by your total income — the blended average across all tax br...
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