How tax brackets really work.
Tax brackets are like buckets. Your income fills the first bucket, taxed at 10%, then spills into the next, taxed at 12%, and so on. Only the money inside each bucket gets that bucket’s rate.
Single filer brackets for 2026
| Rate | Taxable income |
|---|---|
| 10% | $0 – $12,400 |
| 12% | $12,401 – $50,400 |
| 22% | $50,401 – $105,700 |
| 24% | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 |
| 35% | $256,226 – $640,600 |
| 37% | Over $640,600 |
Ali’s tax, bucket by bucket
Ali is single with $43,900 of taxable income (his $60,000 wages minus the standard deduction).
Ali is “in the 12% bracket,” but his tax is only about 8.4% of his $60,000 pay.
Myth: “A raise can push me into a higher bracket and I’ll take home less.” Not true. Only the extra dollars are taxed at the higher rate.
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Frequently asked
What does ‘I’m in the 22% bracket’ mean?
It means your last dollars are taxed at 22%. Your earlier dollars are still taxed at 10% and 12%.
Does New York have brackets too?
Yes. New York State and New York City each have their own brackets on top of federal tax.
Source: IRS: Tax year 2026 inflation adjustments
Figures and rules on this page come from the official and published sources linked above, as of November 2026. People and numbers in the examples are made up to explain the idea. This page is general information, not tax or legal advice for your situation, and laws change; check the linked source or ask a licensed CPA before you act.
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