[{"data":1,"prerenderedAt":102},["ShallowReactive",2],{"term:tax-bracket":3},{"term":4,"related":89},{"id":5,"title":6,"body":7,"category":68,"description":69,"extension":70,"faq":71,"meta":75,"navigation":76,"path":77,"related":78,"seo":82,"stem":83,"takeaways":84,"__hash__":88},"terms\u002Fterms\u002Ftax-bracket.md","Tax Bracket",{"type":8,"value":9,"toc":61},"minimark",[10,15,19,22,26,34,37,41],[11,12,14],"h2",{"id":13},"understanding-tax-bracket","Understanding Tax Bracket",[16,17,18],"p",{},"In a progressive system like U.S. federal income tax, income is divided into brackets, and each slice is taxed at its own rate. Moving into a higher bracket only raises the rate on the income within that bracket.",[16,20,21],{},"That is why a raise never lowers your take-home pay because of brackets alone.",[11,23,25],{"id":24},"in-2026","In 2026",[16,27,28,29,33],{},"U.S. federal income tax has seven rates: ",[30,31,32],"strong",{},"10%, 12%, 22%, 24%, 32%, 35% and 37%",". The One Big Beautiful Bill Act of 2025 made these rates permanent; the income thresholds for each bracket rise with inflation every year.",[16,35,36],{},"For 2026, the 37% rate applies to taxable income above $640,600 for single filers and $768,700 for married couples filing jointly.",[11,38,40],{"id":39},"sources","Sources",[42,43,44,54],"ul",{},[45,46,47],"li",{},[48,49,53],"a",{"href":50,"rel":51},"https:\u002F\u002Fwww.nerdwallet.com\u002Farticle\u002Ftaxes\u002Ftax-changes-2026",[52],"nofollow","NerdWallet: 2026 tax brackets",[45,55,56],{},[48,57,60],{"href":58,"rel":59},"https:\u002F\u002Fwww.accountingtoday.com\u002Fnews\u002Firs-announces-inflation-adjustments-for-2026",[52],"Accounting Today: IRS 2026 inflation adjustments",{"title":62,"searchDepth":63,"depth":63,"links":64},"",2,[65,66,67],{"id":13,"depth":63,"text":14},{"id":24,"depth":63,"text":25},{"id":39,"depth":63,"text":40},"taxes","A range of income taxed at a particular rate in a progressive tax system.","md",[72],{"q":73,"a":74},"Can a raise push me into a higher bracket and lower my pay?","No. Only the extra income in the higher bracket is taxed at the higher rate.",{},true,"\u002Fterms\u002Ftax-bracket",[79,80,81],"marginal-tax-rate","effective-tax-rate","tax-deduction",{"title":6,"description":69},"terms\u002Ftax-bracket",[85,86,87],"Each bracket's rate applies only to income within it.","A higher bracket does not raise tax on all your income.","Brackets are adjusted for inflation each year.","cWX_LPHRIwZ3dUVdFmamzO13KyFZhWu7mlSKBE7me1A",[90,94,98],{"title":91,"description":92,"path":93},"Effective Tax Rate","The share of your total income that you actually pay in tax.","\u002Fterms\u002Feffective-tax-rate",{"title":95,"description":96,"path":97},"Marginal Tax Rate","The tax rate paid on your next dollar of income.","\u002Fterms\u002Fmarginal-tax-rate",{"title":99,"description":100,"path":101},"Tax Deduction","An amount subtracted from income before tax is calculated.","\u002Fterms\u002Ftax-deduction",1793374006046]