Income tax rates are the percentages the federal government takes from your earnings, and they rise as you earn more money
The United States uses a progressive tax system, which means the rate you pay depends on how much you earn. You do not pay the same percentage on every dollar. Instead, your income is divided into brackets, and each bracket has its own rate. The lowest earners pay the lowest rate on their first dollars, and as your income climbs into higher brackets, those additional dollars are taxed at higher rates.
For 2024, federal income tax rates range from 10 percent to 37 percent. The rate you actually pay — called your effective tax rate — is almost always lower than the highest bracket you reach, because only the income within each bracket gets taxed at that bracket's rate. This is different from what many people think, which is that reaching a higher bracket means all your income gets taxed at the higher rate.
Your state may also charge income tax on top of the federal rate. Some states have no income tax at all, while others charge rates between 1 percent and 13 percent. The total tax you owe combines federal and state rates, though you can deduct state taxes paid when you file your federal return (up to $10,000 per year).
Key Takeaways
- Federal income tax brackets for 2024 range from 10 percent to 37 percent, and the rate you pay depends on your total income for the year.
- Only the income that falls within each bracket is taxed at that bracket's rate, so earning more money and moving into a higher bracket does not mean all your income is taxed at the higher rate.
- Your filing status — single, married filing jointly, head of household, or married filing separately — determines which bracket your income falls into.
- State income tax rates vary from zero in some states to over 13 percent in others, and they are added on top of your federal tax bill.
How tax brackets work with your income
Each year, the IRS publishes tax bracket tables that show the income ranges for each rate. These ranges change slightly each year to account for inflation. For example, in 2024, a single filer in the 12 percent bracket pays that rate only on income between roughly $11,600 and $47,150. Income below $11,600 is taxed at 10 percent, and income above $47,150 moves into the 22 percent bracket.
To find your bracket, you add up all your income for the year — wages, self-employment income, investment gains, and other sources — and then match that total to the bracket table for your filing status. The IRS provides separate tables for single filers, married couples filing jointly, married couples filing separately, and heads of household. A married couple filing jointly reaches higher income thresholds before entering each bracket than a single filer does, which is one reason filing status matters.
Your employer withholds tax from each paycheck based on the W-4 form you fill out when you start a job. The withholding is an estimate meant to get you close to what you will owe by the end of the year. If too much is withheld, you get a refund when you file your tax return. If too little is withheld, you owe money.
The difference between marginal rate and effective rate
Your marginal tax rate is the rate on your last dollar of income — the highest bracket you reach. Your effective tax rate is the average rate you pay on all your income combined. These are almost never the same, and understanding the difference stops you from overestimating what you owe.
Suppose you are a single filer in 2024 with $60,000 in taxable income. Your marginal rate is 22 percent because your income extends into the 22 percent bracket. But your effective rate is much lower. You pay 10 percent on the first $11,600, 12 percent on income from $11,600 to $47,150, and 22 percent only on income from $47,150 to $60,000. When you add up the tax on each bracket and divide by your total income, your effective rate comes to roughly 11 percent. That is the rate that matters for your total bill, not the 22 percent marginal rate.
Federal tax brackets for 2024
| Filing Status | 10% | 12% | 22% | 24% | 32% | 35% | 37% |
|---|---|---|---|---|---|---|---|
| Single | $0–$11,600 | $11,600–$47,150 | $47,150–$100,525 | $100,525–$191,950 | $191,950–$243,725 | $243,725–$609,350 | $609,350+ |
| Married Filing Jointly | $0–$23,200 | $23,200–$94,300 | $94,300–$201,050 | $201,050–$383,900 | $383,900–$487,450 | $487,450–$731,200 | $731,200+ |
| Head of Household | $0–$17,400 | $17,400–$66,000 | $66,000–$210,000 | $210,000–$283,100 | $283,100–$365,600 | $365,600–$731,200 | $731,200+ |
These brackets are set by Congress and change each year. The IRS adjusts them annually for inflation, which means the income ranges shift up slightly but the rates themselves stay the same unless Congress passes new tax law. The brackets shown here are for the 2024 tax year, which you will report on your 2024 return filed in 2025.
Your filing status determines which column of the table applies to you. If you are married and file jointly, you use the second row. If you are single, you use the first row. Head of household status, available to unmarried people who pay more than half the household expenses for a dependent, uses the third row and has wider brackets than single status.
How state income tax adds to your federal bill
Nine states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes only investment income). The remaining 41 states and Washington, D.C. charge income tax, and the rates vary widely. Some states use a flat rate — everyone pays the same percentage regardless of income — while others use progressive brackets like the federal system.
California has the highest top state rate at 13.3 percent. New York, New Jersey, and Vermont also charge rates above 10 percent. States with lower rates include Colorado (4.63 percent), Indiana (3.15 percent), and Pennsylvania (3.07 percent). Your state tax is separate from federal tax and is calculated on your state return, though you can deduct up to $10,000 in state and local taxes (called SALT) on your federal return.
What affects your actual tax bill beyond the bracket
Your tax bracket tells you the rate, but your actual bill also depends on deductions and credits. The standard deduction is an amount you can subtract from your income before calculating tax. For 2024, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. If your income is below the standard deduction, you owe no federal income tax.
Tax credits reduce your bill dollar-for-dollar, which makes them more valuable than deductions. The Earned Income Tax Credit (EITC) and the Child Tax Credit are the largest credits for most households. You may also claim deductions for mortgage interest, charitable donations, student loan interest, and other expenses if you itemize instead of taking the standard deduction.
Self-employed people owe an additional 15.3 percent in self-employment tax (Social Security and Medicare), which is calculated separately from income tax. Certain types of income, like long-term capital gains and may have access to dividends, are taxed at lower rates than ordinary income — 0 percent, 15 percent, or 20 percent depending on your income level.
Frequently Asked Questions
Does earning more money push all my income into a higher tax bracket?
No. Only the income that falls within a higher bracket is taxed at that higher rate. If you earn $1 more and cross into the next bracket, that single dollar is taxed at the new rate, but all your previous income stays taxed at the old rates. This is why your effective rate (average rate on all income) is always lower than your marginal rate (rate on your last dollar).
Why do I owe taxes if my employer already withheld money from my paycheck?
Withholding is an estimate based on the information you provide on your W-4 form. If you have multiple jobs, significant investment income, or claimed too many exemptions, your employer may not withhold enough. When you file your return, the IRS calculates what you actually owe and compares it to what was withheld. If you owe more, you pay the difference.
Can I reduce my income tax by changing my filing status?
Your filing status is determined by your marital status and household situation on December 31 of the tax year — you cannot choose it freely. However, married couples can choose to file jointly or separately, and filing jointly almost always results in lower total tax. Single parents may be able to file as head of household, which has wider brackets than single status.
What is the difference between a tax deduction and a tax credit?
A deduction reduces the income you pay tax on, so a $1,000 deduction saves you money equal to your tax rate (roughly $120 if you are in the 12 percent bracket). A credit reduces your tax bill directly, so a $1,000 credit saves you exactly $1,000 no matter your bracket. Credits are more valuable.
Do I have to pay federal income tax if I live in a state with no income tax?
Yes. Federal income tax is separate from state income tax. Even if you live in Alaska, Florida, Nevada, or another state with no income tax, you still owe federal tax on your income if it exceeds the standard deduction. You will file a federal return but no state return.