Figuring out how much you owe for taxes can be complex and sometimes takes some work. That’s because the federal government and the Internal Revenue Service (IRS) don’t assess the same amount of tax for every dollar you earn. Instead, the IRS assigns your income to brackets with tax rates that increase as you earn more money.
Following are the federal tax tables and how to make sense of them to potentially reduce your upcoming tax bill.
2023 tax brackets
| Tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,000 or less | $22,000 or less | $11,000 or less | $15,700 or less |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $346,876 or more | $578,101 or more |
2024 tax brackets
| Tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,600 or less | $23,200 or less | $11,600 or less | $16,550 or less |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,276 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,351 or more |
Source: Internal Revenue Service
2025 tax brackets
| Tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,925 or less | $23,850 or less | $11,925 or less | $17,000 or less |
| 12% | $11,926 to $48,475 | $23,851 to $96,950 | $11,926 to $48,475 | $17,001 to $64,850 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $48,476 to $103,350 | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 | $103,351 $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,525 | $197,301 to $250,500 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,526 to $375,800 | $250,501 to $626,350 |
| 37% | $626,351 or more | $751,601 or more | $375,801 or more | $626,351 or more |
Source: Internal Revenue Service
How do tax brackets work?
The US has a progressive tax system at the federal level with 7 tax brackets. As you earn more money, the additional income jumps to a higher bracket with a higher tax rate. (Over a certain amount, your income is taxed no further.) The Internal Revenue Service adjusts federal income tax brackets annually to account for inflation, and the new brackets can help you estimate your tax obligation based on your income and filing status for the year.
For example, a hypothetical single filer would owe 10% on the first $11,600 of taxable income in 2024 whether that amount represents their total earnings, or they earn $1 million. The next tax bracket is 12% of taxable income levels between $11,601 to $47,150. The tax rates continue to increase as someone’s income moves into higher brackets.
The IRS uses different federal income tax brackets and ranges depending on filing status:
- Single filers
- Married filing jointly
- Married filing separately
- Heads of households who are unmarried but taking care of a qualifying child or dependent
How do you figure out what tax bracket you’re in?
You can figure out what tax bracket you’re in using the tables published by the IRS (see tables above). To figure out your tax bracket, first look at the rates for the filing status you plan to use: single, married filing jointly, married filing separately, or head of household.
Next, determine your taxable income. Start by adding up all the income you’ve earned for the year that will be taxed, such as from salary, bonuses, tips, freelance income, alimony (from an agreement finalized prior to 2019 that has not since been modified), and interest earnings. Subtract things like 401(k) contributions and HSA contributions (these are already factored into your W-2, if you will receive one). Then subtract the standard deduction, or deductions if you plan to itemize. The difference is your total taxable income, though other adjustments to income or deductions may apply.
Note: The top tax rate your income falls into is not the actual rate you’ll pay. It’s the rate you’ll pay on the amount of income that falls into the last bracket.
Find the appropriate boxes listing the income thresholds for your taxable income and filing status to determine how much of your income falls in each bracket.
What is your federal marginal tax rate?
The federal marginal tax rate is the federal income tax rate owed on your highest dollar of income. For example, if your income falls into the 24% tax bracket, your federal marginal tax rate is 24%. You might owe 24 cents for every dollar you earn. If your income pushes you into a higher tax bracket, your marginal tax rate increases to that next percentage, and you’d owe a higher share of taxes on the additional income.
What is your federal effective tax rate?
Your federal effective tax rate is the total percentage of your income you pay in federal income tax, calculated by dividing what you owe in taxes by your total income. It essentially sums up how much you owe for each tax bracket into one percentage. For example, assume a hypothetical taxpayer who is married with $150,000 of joint income in 2024 is claiming the standard deduction of $29,200.
Without considering other income, adjustments to income, or other deductions, their taxable income would be $120,800. They would owe the following in federal income taxes:
- 10% of the first $23,200 = $2,320
- 12% of the next portion ($71,100) up to $94,300 = $8,532
- 22% Of the remaining portion ($26,500) up to $201,050 = $5,830
They owe $16,682 of total taxes on $150,000 of income. Their effective tax rate is then $16,682/$150,000 = 11.1%.
Potential ways to get into a lower tax bracket
You can potentially get into a lower tax bracket by reducing your taxable income for the year. Here are some tactics to consider:
- Maximize potential tax breaks. Any deductions and adjustments to income you claim could reduce your taxable income, which can push you into a lower tax bracket. Ensure you are using all the deductions and adjustments to income you are eligible for.
- Consider bunching deductions if you plan to itemize. Bunching means concentrating deductions in a single year. This strategy can work well when your total itemized deductions for a single year fall below the standard deduction. Charitable contributions for several years made at once may allow the total of itemized deductions to exceed the standard deduction, making it possible to obtain a tax deduction for at least part of the charitable contributions. However, this strategy requires having the financial capacity to pack more than a year’s worth of your contributions into a single year. Deducting charitable contributions may be subject to adjusted gross income (AGI) limits depending on the receiving charity and what you donated.
- Maximize retirement savings. If you have access to a workplace plan such as a 401(k) or a traditional individual retirement account (IRA) each dollar you contribute may reduce your annual taxable income.1 Alternatively, you could contribute to a Roth IRA or Roth 401(k). You don’t get an upfront tax deduction, but your retirement withdrawals would be tax- and penalty-free, assuming you’ve met the 5-year aging rule and other conditions. This may help keep you in a lower tax bracket after you stop working. Don't already have an IRA? Explore the options.
- Health savings account (HSA). A health savings account (HSA) allows you to put money aside if you have a qualifying high-deductible health insurance plan. The money you contribute to an HSA reduces your taxable income, which can lower the tax bracket you're in.
- Tax-loss harvesting. If you invest in a taxable brokerage account, you could consider delaying the sale of profitable investments until at least a year has passed to take advantage of lower long-term capital gains tax rates. You could also sell investments that have lost value to reduce your taxable income and possibly your tax bracket. This strategy, known as tax-loss harvesting, generally allows you to sell investments that are down, replace them with new, reasonably similar investments, and then use those losses to offset realized investment gains in the current calendar year. Any leftover net capital losses can generally offset up to $3,000 of ordinary income each year. Further losses can be carried forward to a future tax year. Note: Wash-sale rules may apply, meaning you can’t sell most investments for a loss and reinvest in the same, or a substantially identical one, 30 days prior to or after the sale, or you’ll lose the tax break.
- Consider delaying income. If you expect to have more income than usual, such as from freelance or gig work, an annual bonus, or sales commissions, consider asking for a delayed payout until the following year, which could lower your income for the current year. The same concept can apply for your investments, for example, you could wait to sell an investment at a gain until the following year.
Consult a tax advisor to help you pinpoint your exact tax bracket and, more importantly, the strategies you can use to reduce how much you owe.