Tax & Salary2026 federal brackets

Tax Bracket Calculator

Being “in the 24% bracket” does not mean you pay 24% of your income. Brackets are marginal: each slice of income is taxed at its own rate. This shows the tax owed in every bracket and the effective rate that actually comes out.

Income & Filing

Federal income tax only — state tax, FICA and credits are not included.

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Used only when Itemised is selected
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401(k), traditional IRA, HSA — reduces taxable income
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FEDERAL INCOME TAX
Marginal rate (top bracket)
Effective rate
Taxable income
After federal tax

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Marginal is not the same as effective

The bracket you are “in” is your marginal rate — the rate the next dollar you earn would be taxed at. Your effective rate is total tax divided by total income, and it is always lower, usually by a wide margin. Someone in the 24% bracket typically pays an effective federal rate closer to 14–17%.

This is why “a raise pushed me into a higher bracket so I take home less” is never true. Only the portion above the threshold is taxed at the higher rate; everything below it keeps its old rate.

What this covers and what it does not

Federal income tax on ordinary income, using the 2026 brackets and standard deduction. It does not include Social Security and Medicare (FICA), state or local income tax, the child tax credit, earned income credit, the qualified business income deduction, capital gains rates, or the alternative minimum tax. Treat the figure as the federal income tax line, not your whole tax bill.

Pre-tax contributions move the whole picture

A dollar into a traditional 401(k) or HSA comes out of taxable income entirely, so it saves tax at your marginal rate, not your effective one. For someone at 24%, a $6,000 contribution cuts federal tax by about $1,440 — which is the single most reliable return available to most wage earners.

Frequently Asked Questions

Will a raise push me into a higher bracket and cost me money?
No. Tax brackets are marginal. If the 24% bracket begins at $105,700 and you earn $106,700, only the last $1,000 is taxed at 24% — the rest keeps the lower rates. Your take-home always rises with a raise.
What is the difference between marginal and effective rate?
Marginal is the rate on your next dollar earned — useful for deciding whether to contribute more pre-tax. Effective is total tax divided by total income — useful for knowing what you actually pay. Effective is always the lower number.
Does this include Social Security and Medicare?
No. FICA is a separate flat charge of 6.2% for Social Security up to the annual wage cap, plus 1.45% for Medicare with no cap. Use the paycheck calculator for a full gross-to-net figure.
Should I itemise or take the standard deduction?
Take whichever is larger. Since the standard deduction was raised, the large majority of filers are better off with it. Itemising generally only wins with a substantial mortgage interest deduction, large charitable giving, or high state and local taxes.