Marginal tax rate

Ordinary income has seven federal tax rates for 2026: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Each applies only to the taxable income inside its bracket, so one return can use several of them. The rates are now permanent, since the One Big Beautiful Bill Act removed their scheduled end after 2025.

Use your marginal rate for a first estimate of what a raise or a new deduction is worth. For a single filer in 2026, the 22% bracket covers taxable income from $50,400 to $105,700. On a joint return, it runs from $100,800 to $211,400. A single filer with $90,000 of taxable income has a marginal rate of 22%. For them, a $1,000 raise adds $220 of federal income tax. A deduction that cuts their taxable income by $1,000 saves the same $220.

A large change can cross into the next bracket. If that filer’s taxable income rose to $110,000, only the $4,300 above $105,700 would be taxed at 24%. Some deductions also shrink as income rises, so a raise can cost more than the bracket rate suggests. Once you pass the first bracket, your effective tax rate falls below your marginal rate.