2025 Tax Brackets and Federal Income Tax Rates

Source: Internal Revenue Service (IRS)

How Income Tax Brackets Work

Most taxpayers—all except those who fall squarely into only the minimum bracket—have income that is taxed progressively. This means that their income is subject to multiple rates beyond the nominal rate of their tax bracket. The dollar ranges in each bracket also vary according to filing status (single, married filing jointly and qualifying widow[er]s, married filing separately, and head of household).

An annual income of $100,000 fits the 22% tax bracket for all filing statuses in tax year 2025. However, the entire $100,000 isn't taxed at 22%. It's taxed at different rates that are aligned with the various brackets of income that cover the segments of income up to $100,000. So, ultimately a taxpayer pays less than they would if their total income were taxed at 22%.

That also means a taxpayer’s tax bracket doesn't necessarily reflect the percentage of their income that they will pay in taxes—what's known as the effective tax rate.

There are numerous online sources to find your specific federal income tax bracket, including the IRS's annual tax tables, which provide highly detailed tax filing statuses in increments of $50 of taxable income up to $100,000.

Other websites provide tax bracket calculators that do the math for you, as long as you know your filing status and taxable income. Your tax bracket can shift from year to year, depending on inflation adjustments and changes in your income and filing status, so it’s worth checking annually.

Example: How to Calculate Your Taxes

Here's the tax responsibility and the effective tax rate for a single filer with a taxable income of $50,000 in 2025:

The first $11,925 is taxed at 10%: $11,925 × 0.10 = $1,192.50

The next $11,926 to $48,475, or $36,549, is taxed at 12%: $36,549 × 0.12 = $4,385.88

Finally, the remaining $1,525 (what’s left of the $50,000 income) is taxed at 22%: $1,525 × 0.22 = $335.50

Add the taxes owed in each of the brackets:

Total taxes: $1,192.50 + $4,385.88 + $335.50 = $5,913.88

The individual’s effective tax rate is approximately 13% of income:

Divide total taxes by annual earnings: $5,913.88 ÷ $50,000 = 0.12

Multiply 0.12 by 100 to convert to a percentage, which is 12%.

What Is a Marginal Tax Rate?

Thanks to its progressive tax system, the U.S. uses a marginal tax rate to determine taxes owed. A marginal tax rate determines the tax paid on an additional dollar of income that takes a taxpayer into a higher tax bracket.

The marginal tax rate increases as a taxpayer’s income increases. There are different tax rates for various levels of income. In other words, taxpayers will pay the lowest tax rate on the first “bracket” or level of taxable income, a higher rate on the next level, and so on.

When determining which tax bracket to use, you should first calculate your taxable income, including earned and investment income minus adjustments and deductions.

What Is an Effective Tax Rate?

An effective tax rate is the percentage of tax owed on taxable income. The effective tax rate is lower than the marginal tax rate because the latter breaks down your income into different tiers. Income at the first tier is taxed at a low rate, and each tier above it is taxed at a progressively higher rate than the previous level.

You can determine what your effective tax rate is by dividing your total tax by your taxable income on your federal tax return. On Form 1040, divide the figure on line 24 (your total tax) by the figure on line 15 (your taxable income), and then multiply that figure by 100.

How to Reduce Your Taxes

Deductions

Deductions decrease the amount of your income that is subject to taxes, so try to take as many as you can claim. For example, you can contribute the maximum to a retirement account at work, such as a 401(k), and/or contribute to a traditional individual retirement account (IRA). If you have the option of a high-deductible health insurance plan at work and you open a health savings account (HSA), HSA contributions made by payroll deduction are excluded from your taxable income. A flexible spending account (FSA) can also help to reduce your taxable income.

Credits

Be sure to take advantage of tax credits you are eligible for, too. Tax credits come directly off the amount you owe in taxes to the IRS—what's known as a dollar-for-dollar perk. Examples of tax credits include the  Child Tax Credit, the Earned Income Tax Credit (EITC), the American Opportunity Tax Credit, the Lifetime Learning Credit (LLC), and the Saver's Credit.

State Tax Brackets

Some states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Washington only taxes investment income and capital gains for certain high earners. New Hampshire doesn’t tax earned wages, but it does tax investment income and interest. However, it is phasing out those taxes now, which will bring the number of states with no income tax to eight by the end of 2024.

In 2024, 12 states had a flat rate structure, with a single rate applying to a resident’s income: Arizona (2.5%), Colorado (4.40%), Georgia (5.49%), Idaho (5.8%), Illinois (4.95%), Indiana (3.05%), Kentucky (4.0%), Michigan (4.25%), Mississippi (4.7%), North Carolina (4.5%), Pennsylvania (3.07%), and Utah (4.65%).

In other states, the number of tax brackets varies from three to as many as nine (in California and New York) and even 12 (in Hawaii). The marginal tax rates in these brackets also vary considerably. California has the highest, maxing out at 13.3%.

State income tax regulations may or may not mirror federal rules. Some states allow residents to use the federal personal exemption and standard deduction amounts for figuring state income tax, while others have their own exemption and standard deduction amounts.

The Bottom Line

The federal tax system in the U.S. is progressive. Taxpayers who fall into lower brackets pay lower rates than taxpayers in higher brackets. In 2024 and 2025, there are seven federal tax brackets, with rates ranging from 10% to 37%.

Unless your taxable income lands you in the lowest tax bracket, you are charged at multiple rates as your income rises. Your entire income is not subject to the rate of the bracket classified for your total income level.