The United States taxes income in layers. Each layer, called a bracket, has its own rate, and only the dollars that fall inside a bracket are taxed at that bracket's rate. That is why moving into a higher bracket never reduces your take-home pay on the income you already had. This guide gives the official federal brackets for 2025 returns (filed in 2026) and for 2026 planning, and shows how to read them.
How marginal rates work
Your marginal rate is the rate on your last dollar of taxable income. Your effective rate is your total tax divided by your income, and it is always lower than your top marginal rate because the first dollars were taxed at 10% and 12%.
Example: A single filer earns $90,000 in wages in 2025 and has no other income or adjustments. The standard deduction is $15,750, so taxable income is $74,250. The first $11,925 is taxed at 10% ($1,192.50), the next $36,550 at 12% ($4,386.00) and the remaining $25,775 at 22% ($5,670.50). Total federal income tax is $11,249, an effective rate of about 12.5% of wages, even though the top marginal rate was 22%.
2025 brackets (taxable income over)
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 | $0 | $0 |
| 12% | $11,925 | $23,850 | $17,000 |
| 22% | $48,475 | $96,950 | $64,850 |
| 24% | $103,350 | $206,700 | $103,350 |
| 32% | $197,300 | $394,600 | $197,300 |
| 35% | $250,525 | $501,050 | $250,500 |
| 37% | $626,350 | $751,600 | $626,350 |
2026 brackets (taxable income over)
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 | $0 | $0 |
| 12% | $12,400 | $24,800 | $17,700 |
| 22% | $50,400 | $100,800 | $67,450 |
| 24% | $105,700 | $211,400 | $105,700 |
| 32% | $201,775 | $403,550 | $201,750 |
| 35% | $256,225 | $512,450 | $256,200 |
| 37% | $640,600 | $768,700 | $640,600 |
Married filing separately uses the single thresholds up to the 35% bracket. The 37% bracket for separate filers starts at $375,800 in 2025 and $384,350 in 2026. Qualifying surviving spouses use the joint brackets. Estates and trusts have their own, much more compressed schedule.
Rates that sit outside the ordinary brackets
Several taxes are figured separately from the table above:
- Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20% depending on income. See capital gains and losses.
- Net investment income tax of 3.8% can apply to higher earners. See net investment income tax.
- Additional Medicare Tax of 0.9% applies to wages and self-employment income above set thresholds. See Additional Medicare Tax.
- Self-employment tax of 15.3% on net self-employment earnings, up to the Social Security wage base. See self-employment tax.
- Alternative minimum tax is a parallel calculation for some taxpayers. See alternative minimum tax.
Children with investment income can also be affected by the "kiddie tax," which taxes part of a young child's unearned income at the parent's rate. The IRS says Form 8615 may apply once a child's unearned income is more than $2,700 (see the IRS page on the kiddie tax).
Planning points
Because only the portion of income above each threshold is taxed at the higher rate, bracket planning is about the edges. Common ideas include timing income and deductions between two years, making a retirement contribution to bring taxable income down, or realizing gains in a year when income is lower. Whether any of these helps depends on your full picture, including the phase-outs for credits and deductions that can raise your effective marginal rate inside a bracket.
Your withholding or estimated payments should reflect the brackets for the year the income is earned. See estimated taxes and Form W-4 withholding.
State income tax is separate
Illinois taxes individuals at a flat rate of 4.95% of net income, according to the Illinois Department of Revenue. It does not use federal brackets, and it starts from federal adjusted gross income. Many other states use graduated brackets or have no income tax at all. See our Illinois tax guide.
How we can help
We can project your taxable income for 2026, show where you sit in the brackets, and test options such as retirement contributions, charitable timing and estimated payments. Learn more about tax planning or contact us.
Frequently asked questions
If I get a raise that pushes me into a higher bracket, will I take home less?
No. Only the extra income above the bracket threshold is taxed at the higher rate. Everything below it is still taxed at the lower rates.
What is the difference between taxable income and gross income?
Gross income is everything you received that is taxable. Taxable income is what remains after adjustments and either the standard deduction or your itemized deductions. Brackets apply only to taxable income.
Do the 2026 brackets apply to my 2025 return?
No. The 2025 brackets apply to income earned in calendar 2025 and reported on the return filed in 2026. The 2026 brackets apply to income earned in 2026 and reported on the return filed in 2027.
Are capital gains taxed at the same rates?
Not usually. Long-term gains on assets held more than one year are generally taxed at 0%, 15% or 20%, using separate income thresholds.
Official sources
- IRS: Rev. Proc. 2024-40 (2025 inflation adjustments)
- IRS: Rev. Proc. 2025-32 (2026 inflation adjustments)
- IRS: 2026 tax inflation adjustments news release
- IRS: Topic no. 553, Tax on a child's investment and other unearned income
- Illinois Department of Revenue: Income tax rates
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.