1. What Are Tax Brackets?

The U.S. federal income tax system is progressive, meaning different portions of your income are taxed at different rates. These ranges of income are called tax brackets.

2. How Tax Brackets Work

Only the income within each bracket is taxed at that bracket's rate. For example, if you're single and earn $50,000 in 2025:

• The first $11,000 is taxed at 10%
• $11,001-$44,725 is taxed at 12%
• The remaining $5,275 is taxed at 22%

3. 2025 Tax Bracket Changes

Details: Tax brackets are adjusted annually for inflation. The 2025 brackets will be slightly higher than 2024 to account for inflation.

4. Using the Calculator

Tips: Enter your expected taxable income (after deductions) and select your filing status. The calculator will show your estimated tax and effective tax rate.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between marginal and effective tax rate?
A: Your marginal rate is the highest bracket you reach, while effective rate is the average rate you pay on all income.

Q2: Are state taxes included?
A: No, this calculator only estimates federal income tax.

Q3: How often do tax brackets change?
A: Brackets are adjusted annually for inflation. Major changes require new tax legislation.

Q4: What counts as taxable income?
A: This is your adjusted gross income minus either the standard deduction or itemized deductions.

Q5: Where can I find official tax bracket information?
A: The IRS publishes annual tax brackets in Revenue Procedures, typically late in the year.