Tax Brackets Explained: How Marginal Tax Rates Work
Clear explanation of progressive tax brackets and why earning more money doesn't tax all your income at a higher rate.
The Common Misconception
Many people believe that earning slightly more income will bump them into a higher tax bracket where ALL their income is taxed at that higher rate. This is a myth!
Reality: The U.S. uses a progressive tax system where only the income within each bracket is taxed at that bracket's rate.
How Progressive Brackets Work
Tax brackets work in "layers." As your income increases, each successive dollar is taxed at the rate for that bracket, not the previous amounts.
2026 Single Filer Example:
- First $11,000: Taxed at 10%
- $11,000 - $44,725: Taxed at 12%
- $44,725 - $95,375: Taxed at 22%
- $95,375 and above: Taxed at 24%
Live Example: $50,000 Income
Let's calculate taxes for a single filer earning $50,000 (before deductions):
Marginal vs. Effective Tax Rate
Marginal Tax Rate
The percentage you pay on your LAST dollar earned. In the example above, it's 22%.
Effective Tax Rate
Your average tax rate on ALL income. In the example above, it's 12.6%.
Will a Raise Push You Into a Higher Bracket?
Let's say you earn $44,700 and get a $1,000 raise to $45,700.
Before raise: Last $1,000 taxed at 12%
After raise: The raise gives you an extra $45 ($1,000 × 22%) to $780 ($625 × 22% + $375 × 12%) in taxes
Result: You keep most of your raise. Don't avoid a raise due to bracket concerns!
2026 Tax Brackets (Single Filer)
| Tax Rate | Income Range |
|---|---|
| 10% | $0 - $11,000 |
| 12% | $11,000 - $44,725 |
| 22% | $44,725 - $95,375 |
| 24% | $95,375 - $182,100 |
| 32% | $182,100 - $231,250 |
Calculate Your Tax Bracket
Use our tax bracket tool to find your specific bracket and see the full progressive calculation.
View 2026 Brackets