Federal Tax Bracket Calculator 2026: guide
Tax brackets confuse almost everyone at first. The good news: the US federal income tax system is progressive, which means you do NOT pay your top bracket rate on your entire income.
How tax brackets actually work
A tax bracket is a marginal rate. It applies only to the next slice of taxable income.
Example: if you are in the 22% bracket, that does not mean you pay 22% on all your income. It means the last dollars you earned are taxed at 22%.
Marginal vs effective tax rate
Your marginal rate is the rate on your last dollars of income.
Your effective rate is your total tax divided by your total taxable income (or total income, depending on the calculation). Effective rate is almost always lower.
What counts as taxable income?
Tax brackets apply to taxable income, not your salary.
To get taxable income, you typically start with total income, subtract adjustments, then subtract either the standard deduction or itemized deductions.
Common mistakes
- Using gross income instead of taxable income
- Forgetting that deductions reduce taxable income before brackets apply
- Mixing capital gains rates with ordinary income brackets
- Assuming a raise can reduce your take-home pay (usually false)
Try the calculator
Use our 2026 federal tax bracket calculator to estimate your tax and see your marginal vs effective rate.