Start with taxable income, not your salary
A worker earning $90,000 does not automatically pay one tax rate on the entire $90,000. Federal income tax uses progressive brackets: different portions of taxable income are taxed at different rates. The figure that enters the brackets is generally taxable income after applicable adjustments and deductions, not the salary printed on an offer letter. Filing status also changes the thresholds.
The IRS's 2026 Publication 505 publishes schedules for 2026 estimated-tax calculations. Use the schedule for the correct tax year and filing status; do not carry last year's limits forward out of habit. State income tax, payroll taxes, credits, deductions, and other rules are separate parts of a full estimate.
2026 federal ordinary-income brackets
The following thresholds are for 2026 taxable income. The listed rate applies only to the slice inside that band, not retroactively to every dollar earned.
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0–$12,400 | $0–$24,800 |
| 12% | $12,400–$50,400 | $24,800–$100,800 |
| 22% | $50,400–$105,700 | $100,800–$211,400 |
| 24% | $105,700–$201,775 | $211,400–$403,550 |
| 32% | $201,775–$256,225 | $403,550–$512,450 |
| 35% | $256,225–$640,600 | $512,450–$768,700 |
| 37% | Over $640,600 | Over $768,700 |
Head-of-household and married-filing-separately schedules have different thresholds. This abbreviated table is not a complete return calculation. Confirm the applicable schedule directly with the IRS before preparing a return or making estimated payments.
Marginal rate is not your effective rate
Your marginal rate is the rate on the next taxable dollar that falls in the relevant bracket. Your effective federal income-tax rate is total federal income tax divided by the chosen income measure. Because lower portions of taxable income are taxed at lower rates, a person in the 22% bracket does not normally pay 22% of all taxable income as federal income tax.
For example, a single filer with $90,000 of taxable income falls partly in several brackets. The calculation adds the tax for each slice. It does not multiply $90,000 by 22%. Credits and other adjustments may then change the final liability.
A practical way to estimate your own result
- Choose the correct tax year and filing status.
- Estimate taxable income after the deductions and adjustments that actually apply to you.
- Apply each bracket progressively, including only the income slice in each band.
- Account separately for credits, state taxes, payroll taxes, and withholding.
- Compare the estimate with pay stubs or prior returns, then update assumptions when life changes.
A raise that moves some income into a higher bracket does not cause all earlier income to be taxed at that higher rate. This is the most common misunderstanding behind the claim that a raise can leave a worker worse off solely because of federal brackets.
Withholding and total tax are different numbers
Payroll withholding is money paid toward an expected bill during the year; it is not itself the final tax. A refund may mean too much was withheld, while a balance due may mean too little was paid. Self-employed people can also need estimated payments and may owe self-employment tax that is separate from ordinary income tax.
Useful calculators
- 2026 US Federal Tax Bracket Calculator for a bracket-based estimate.
- Hourly-to-Salary Calculator to annualize hourly pay before making a broader estimate.
- Percentage Calculator for checking effective-rate and withholding ratios.
Questions people commonly ask
Do brackets use gross pay?
No. The bracket calculation uses taxable income, which may be lower than gross earnings after applicable deductions and adjustments.
Does entering a higher bracket tax every dollar at that rate?
No. The higher marginal rate applies only to the taxable income inside that band.
Are the 2026 brackets for a 2025 return?
No. IRS Publication 505 says the 2026 tax-rate schedules are for 2026 estimated-tax calculations. Check the correct-year instructions for the return being prepared.
Note: This article is general educational information, not individualized tax, investment, legal, or financial advice. Verify current rules and your own numbers before making a decision.