Tax brackets are progressive - only income ABOVE each threshold is taxed at the higher rate. Example: $75,000 income (single): First $11,600 at 10%, next $35,550 at 12%, remaining $27,850 at 22%. Total tax ≈ $11,950 (16% effective rate).
- Moving to higher bracket doesn't tax ALL income higher
- Only the income ABOVE the threshold is taxed at higher rate
- Example: $50,000 taxable income = ~$6,500 tax (13% effective)
- Married filing jointly: Brackets are roughly double
| 2024 Bracket (Single) | Income Range | Tax on This Portion |
|---|---|---|
| 10% | $0 - $11,600 | $1,160 max |
| 12% | $11,601 - $47,150 | $4,266 max |
| 22% | $47,151 - $100,525 | $11,742 max |
| 24% | $100,526 - $191,950 | $21,942 max |
| 32% | $191,951 - $243,725 | $16,568 max |
| 35% | $243,726 - $609,350 | $127,968 max |
| 37% | $609,351+ | No limit |