Tax Bracket — Definition and What It Means for Your Income
A range of income taxed at a specific rate under the progressive federal tax system.
Tax brackets are income ranges subject to a specific federal income tax rate. The U.S. system is progressive, meaning higher portions of income are taxed at higher rates — but only the income within each bracket is taxed at that bracket's rate.
Why it matters
Understanding tax brackets prevents the common misconception that earning more pushes ALL your income into a higher rate — only the additional income above the threshold is taxed at the higher rate.
Example
For 2026 single filers, income from $48,475 to $103,350 falls in the 22% bracket — but only that portion is taxed at 22%; income below $48,475 is taxed at lower rates.
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Tax Bracket — FAQ
How many federal tax brackets are there?
There are 7 federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.