Definition
A range of taxable income that is taxed at one rate; the U.S. has seven federal brackets, from 10% to 37%.
What it means
The federal income tax is progressive. Your taxable income is split into layers, and each layer is taxed at its own rate. For 2026, a single filer pays 10% on the first $12,400 of taxable income, 12% up to $50,400, 22% up to $105,700, 24% up to $201,775, 32% up to $256,225, 35% up to $640,600 and 37% above that. Joint filers have wider brackets, starting with 10% up to $24,800. Moving into a higher bracket only raises the rate on the dollars inside that bracket, not on all of your income, so a raise never lowers your take-home pay because of the bracket alone. The IRS adjusts the brackets for inflation each year. Long-term capital gains and qualified dividends use separate rates.
Example
A single filer with $60,000 of 2026 taxable income pays $1,240 (10%) + $4,560 (12%) + $2,112 (22% on $9,600) = $7,912, an average of about 13.2%.
Illustrative numbers only. Your situation will differ.