Taxes

What Is a Tax Bracket?

A tax bracket is a range of taxable income that is taxed at a specific rate. In a progressive system such as US federal income tax, income is divided into several brackets, and each rate applies only to the portion of income that falls inside that bracket, not to all income.

How Tax Brackets Work

Moving into a higher bracket does not raise the tax on all income. Only the dollars above the bracket threshold are taxed at the higher rate; income in lower brackets keeps its lower rates.

Example

Suppose the first bracket is 10% up to 10,000 and the next is 12% above that. Taxable income of 15,000 is taxed as 10,000 × 10% + 5,000 × 12% = 1,600, not 15,000 × 12%.

Where Bracket Thresholds Come From

In the United States, the IRS adjusts federal bracket thresholds for inflation each year, and thresholds differ by filing status.

🧮 Calculate It Yourself

Put Tax Bracket into practice with these free calculators — no sign-up, nothing stored.

🧾 2026 Federal Tax Bracket Calculator Calculate your federal income tax using official 2026 IRS brackets and standard deduction. Calculate → 📊 Effective vs. Marginal Tax Rate Calculator See exactly how your income is taxed bracket by bracket. Calculate → 💰 Paycheck Calculator (2026) Estimate your take-home pay using official 2026 federal tax brackets and FICA rates. Calculate →

🔗 Related Terms

Marginal Tax Rate Effective Tax Rate Taxable Income Standard Deduction

More Taxes Terms

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.