Tax Bracket Waterfall
See how federal income tax actually works. Enter your income and filing status, then watch each bracket fill up sequentially — your effective rate is always lower than your marginal rate, because only your last dollars are taxed at the top rate.
Key Numbers
2026 Brackets
7 rates (10%–37%)
Std Deduction (Single)
$16,100
Std Deduction (MFJ)
$32,200
Top Rate Starts
$640,600 (single)
Total Federal Tax
$9,870
Effective Rate
11.6%
Marginal Rate
22%
After-Tax Income
$75,130
You're in the 22% bracket — but only your dollars above $50,400 of taxable income are taxed at that rate. Your overall effective rate is just 11.6%, because every earlier dollar is taxed at lower rates first.
Bracket-by-Bracket Breakdown — Single
| Bracket | Range | Your $ in Bracket | Tax at This Rate | Cumulative Tax |
|---|---|---|---|---|
| Std. Deduction | First $16,100 | $16,100 | $0 | $0 |
| 10% | $0 – $12,400 | $12,400 | $1,240 | $1,240 |
| 12% | $12,400 – $50,400 | $38,000 | $4,560 | $5,800 |
| 22%Marginal | $50,400 – $105,700 | $18,500 | $4,070 | $9,870 |
| Total | $68,900 | $9,870 | eff. 11.6% |
Deduction
Your standard deduction of $16,100 is subtracted from gross income. You pay $0 tax on this amount.
Brackets Fill Up
Each bracket fills sequentially. Your first $12,400 of taxable income is taxed at just 10%, the next chunk at 12%, and so on.
Effective ≠ Marginal
Your marginal rate (22%) applies only to your last dollars. Your actual average rate — the effective rate — is just 11.6%.
Sources: 2026 federal income tax brackets from the One Big Beautiful Bill Act (OBBBA), signed July 2025, which made the 10–37% rate structure permanent and applied inflation adjustments (4% for the 10–12% brackets, 2.3% for higher brackets). Standard deduction amounts per IRS Revenue Procedure 2025-XX. Bracket thresholds shown are for taxable income (after standard deduction). This visualization does not account for credits, AMT, NIIT, or state/local taxes.
This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.
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