Effective federal rate
14.2%
Marginal rate: 22%
Federal tax owed$12,053
FICA (7.65%)$6,503
Take-home$66,444
Net of total tax78.2%
Bracket-by-bracket
| Bracket | Range | Tax in band |
|---|
Your marginal rate is the bracket you are in. Your effective rate is what you actually pay.
| Bracket | Range | Tax in band |
|---|
The single most repeated piece of US tax misinformation is "I don't want a raise — it'll push me into a higher bracket and I'll take home less." This is mathematically impossible under the US progressive system. Brackets stack: the first $12,400 of taxable income for a single filer in 2026 is taxed at 10%, the next slice up to $50,400 at 12%, and so on. Crossing into the 22% bracket means dollars above the threshold pay 22%, not your whole income.
The two real concepts that get conflated under "marginal vs effective":
The IRS announces the next year's tax brackets each October by inflation-indexing the prior year's thresholds. The 2026 thresholds below were set by Revenue Procedure 2025-32 in October 2025, using chained CPI for the inflation adjustment.
| Rate | Single | MFJ | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,400 |
| 22% | $50,400 – $107,500 | $100,800 – $215,000 | $67,400 – $107,500 |
| 24% | $107,500 – $205,000 | $215,000 – $410,000 | $107,500 – $205,000 |
| 32% | $205,000 – $260,400 | $410,000 – $520,850 | $205,000 – $260,400 |
| 35% | $260,400 – $651,950 | $520,850 – $781,900 | $260,400 – $651,950 |
| 37% | $651,950+ | $781,900+ | $651,950+ |
Single / MFS: $15,750. MFJ: $31,500. HoH: $23,625. Additional $1,650 (single/HoH) or $1,300 (MFJ/MFS) per condition for taxpayers 65+ or blind. Post-TCJA, about 90% of US filers take the standard deduction.
Note: this example assumes $100k is already taxable income (after standard deduction). On gross wages of $115,750, the same single filer would have $115,750 − $15,750 standard deduction = $100,000 taxable.
Long-term capital gains (assets held over one year) and qualified dividends use a separate, friendlier rate schedule: 0% / 15% / 20%. Short-term gains (held one year or less) are taxed as ordinary income at the bracket rate.
| LTCG rate | Single | MFJ | HoH |
|---|---|---|---|
| 0% | $0 – $48,350 | $0 – $96,700 | $0 – $64,750 |
| 15% | $48,350 – $533,400 | $96,700 – $600,050 | $64,750 – $566,700 |
| 20% | $533,400+ | $600,050+ | $566,700+ |
| 2026 LTCG thresholds per IRS Rev. Proc. 2025-32. Net Investment Income Tax (NIIT) adds 3.8% on investment income above $200,000 single / $250,000 MFJ. | |||
If your total taxable income (including realized gains) stays under $48,350 single / $96,700 MFJ, long-term gains are federally tax-free. This is a quietly enormous opportunity for early-retirees and gap-year earners — realize gains in a low-income year to permanently reset cost basis without owing federal tax.
The brackets apply to taxable income — gross minus standard deduction (or itemized) minus QBI. Most people who say "I'm in the 24% bracket" are actually in the 22% based on taxable income. Always run the calculator on the post-deduction figure.
FICA (7.65% on wages) is a separate tax from income tax — it's not included in the bracket. A single filer with $100k earning W-2 wages pays $16,712 federal income tax + $7,650 FICA = $24,362 total US federal payroll tax burden. Add state and you're typically at 30%+ combined.
A big spring refund means you over-withheld and lent the IRS your money interest-free for the year. Tune Step 4(c) on your W-4 to land near $0 owed at filing — that's the optimal outcome.
Sources: IRS Rev. Proc. 2025-32 (2026 inflation adjustments), Rev. Proc. 2024-40 (2025), Rev. Proc. 2023-34 (2024); SSA Press Release on 2026 wage base (October 2025); IRS Publication 17 (Your Federal Income Tax); Form 1040 instructions.
Marginal rate is the bracket your next dollar of income falls into. Effective rate is total tax divided by total income — what you actually pay on average. Effective is always lower than marginal because the lower brackets stack first. A single filer with $100,000 taxable income in 2026 has a 22% marginal rate but a roughly 16.7% effective federal rate.
Per IRS Rev. Proc. 2025-32 for tax year 2026: Single — 10% to $12,400, 12% to $50,400, 22% to $107,500, 24% to $205,000, 32% to $260,400, 35% to $651,950, 37% above. MFJ — 10% to $24,800, 12% to $100,800, 22% to $215,000, 24% to $410,000, 32% to $520,850, 35% to $781,900, 37% above. HoH — 10% to $17,700, 12% to $67,400, then matches single thresholds from the 22% bracket up.
Per IRS Rev. Proc. 2025-32: Single and MFS $15,750; MFJ $31,500; HoH $23,625. Additional standard deduction for taxpayers 65+ or blind: $1,650 per condition (single/HoH) or $1,300 per condition (MFJ/MFS). Post-TCJA, about 90% of US filers take the standard deduction rather than itemize.
No — this is the most common US tax misconception. The US uses progressive marginal brackets, meaning only income above the threshold is taxed at the higher rate. A $1,000 raise that pushes you from the 22% bracket into the 24% bracket means the dollars above the threshold pay 24%, not your whole income. You always net more from a raise. The exception: very specific income-tested benefit cliffs (ACA subsidies, child tax credit phase-outs) can create local marginal rates above 50%, but those aren't bracket math.
FICA stacks on top of federal income tax: 6.2% Social Security on wages up to $182,400 (2026 wage base per SSA) plus 1.45% Medicare on all wages, plus 0.9% Additional Medicare on wages above $200,000 single ($250,000 MFJ). Self-employed pay both halves (15.3%). FICA is a separate calculation from the tax brackets.
Long-term capital gains (assets held over 1 year) get preferential rates: 0% / 15% / 20% based on income. Per IRS for 2026: Single 0% bracket up to $48,350, 15% to $533,400, 20% above. MFJ 0% up to $96,700, 15% to $600,050, 20% above. NIIT adds 3.8% on investment income above $200,000 single / $250,000 MFJ. Short-term gains (held ≤ 1 year) are taxed as ordinary income.
AMT is a parallel tax system that disallows certain deductions (state/local tax above the SALT cap, depreciation, ISO exercises) and applies a separate 26%/28% rate. The 2026 AMT exemption per IRS: $89,800 single, $139,800 MFJ, with phase-outs starting at $639,300 single / $1,278,600 MFJ. Post-TCJA, AMT affects very few taxpayers — historically a million or two filers per year.
No — this calculator shows federal income tax + FICA only. State income tax varies dramatically: 9 states (AK, FL, NV, NH on wages, SD, TN, TX, WA, WY) have no broad income tax. Most others use a flat rate or progressive brackets. CA, NY, NJ have the highest state rates at 9–13.3% for top earners. For a state-aware view, use the paycheck calculator.
Gross income = all income before any adjustments. AGI (Adjusted Gross Income) = gross minus above-the-line deductions like Traditional IRA, HSA, student-loan interest. Taxable income = AGI minus standard deduction (or itemized) minus QBI deduction. The brackets in this calculator are applied to taxable income.
The Tax Cuts and Jobs Act (TCJA) of 2017 set the current bracket structure. Under sunset provisions, parts were scheduled to revert in 2026 (top rate from 37% back to 39.6%, narrower 12% bracket, lower standard deduction). Subsequent legislation has extended portions. The brackets in this calculator reflect the current 2026 IRS Revenue Procedure as published — verify against the IRS site for any late legislative changes that may apply to your filing year.