Federal Income Tax Brackets 2025
Source: IRS Revenue Procedure 2024-40. Select a filing status to see the brackets that apply to you.
| Rate | Income Range | Tax on Bracket |
|---|---|---|
| 10% | $0 to $11,925 | $1,193 |
| 12% | $11,926 to $48,475 | $4,386 |
| 22% | $48,476 to $103,350 | $12,073 |
| 24% | $103,351 to $197,300 | $22,548 |
| 32% | $197,301 to $250,525 | $17,032 |
| 35% | $250,526 to $626,350 | $131,539 |
| 37% | $626,351 and above | $74,000 |
How Tax Brackets Work
The U.S. uses a progressive tax system, which means different portions of your income are taxed at different rates. A common misconception is that moving into a higher tax bracket means all your income is taxed at the higher rate. In reality, only the income within that bracket is taxed at that rate.
Worked Example: $75,000 Income (Single Filer, 2025)
| Bracket | Income in Bracket | Tax |
|---|---|---|
| 10% ($0 to $11,925) | $11,925 | $1,192.50 |
| 12% ($11,926 to $48,475) | $36,550 | $4,386.00 |
| 22% ($48,476 to $103,350) | $11,525 | $2,535.50 |
| Total Tax | $8,114.00 | |
Note: This example uses taxable income of $60,000 ($75,000 gross minus the $15,000 standard deduction). The effective rate is approximately 10.8% of gross income, even though the marginal rate is 22%.
Frequently Asked Questions
How do tax brackets work?
Tax brackets use a progressive system where only the income within each bracket is taxed at that rate. Moving to a higher bracket does not mean all your income is taxed at the higher rate.
What are the 2025 federal tax brackets?
For 2025, the seven federal tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income thresholds vary by filing status.
When do the 2025 tax brackets apply?
The 2025 brackets apply to income earned from January 1, 2025 through December 31, 2025. You will use these brackets when filing your tax return in early 2026.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate on your last dollar of income. Your effective tax rate is the total tax divided by total income, which is typically much lower than your marginal rate.
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TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only. Consult a qualified tax professional for advice specific to your situation.