Marginal Rates
Income isn't taxed at a single rate. Instead, it's divided into portions, with each portion taxed at its own marginal rate.
Filling the Buckets
Your first dollars fill the lowest tax bracket, then the next dollars fill the next bracket, and so on. Only the income within that specific range is taxed at that rate.
Not All at Once
This progressive system means your highest tax rate applies only to the portion of your income that falls into that top bracket, not your entire income.
Choosing Your Filing Status
Married Filing Jointly
For married couples who combine their income and deductions on one tax return. Often results in lower tax liability.
Head of Household
For unmarried individuals who pay more than half the cost of keeping up a home for a qualifying person. Offers better tax benefits than 'Single'.
Single
For unmarried individuals. This is the most common filing status for those without dependents.
Typical Tax Bracket Ranges
10%
Lowest Bracket
22%
Mid-Range Bracket
37%
Highest Bracket
Discover how deductions and credits can reduce your taxable income or your tax due, dollar for dollar.