:max_bytes(150000):strip_icc()/shutterstock_112522391-5bfc2b9846e0fb0051bde2d3.jpg "What’s the Difference Between a Tax Rate and a Tax Bracket?")
:max_bytes(150000):strip_icc():format(jpeg)/shutterstock_112522391-5bfc2b9846e0fb0051bde2d3.jpg)
The term tax brackets refer to the Internal Revenue Service (IRS) tables, issued each year, that indicate the dollar amount owed in taxes by every taxpayer whose income falls within the minimum to maximum income numbers. Each tax bracket corresponds to a tax rate.
There are three components of a tax bracket: filing status, tax rate, and income range. Tax rates are shown on the Y-axis and filing statuses are shown on the X-axis. The amount of income taxed at a specific rate for a specific income amount is found in the body of the tax bracket.
Each of the seven tax rates applies to a specific level of income rather than applying to all of a taxpayer’s taxable income. Taxpayers use a tax bracket to determine what their taxes due are.
Key Takeaways
- A tax bracket is a tax rate for a range of incomes, as shown on a table created by the IRS to indicate the total amount of income tax due from each taxpayer.
- There are three components of a tax bracket: filing status, tax rate, and income range.
- There are five filing statuses with different tax rates: single, married filing separately, married filing jointly, head of household, and qualifying widow/widower with dependent child.
The Internal Revenue Service (IRS) uses a progressive tax system, meaning that the more a taxpayer earns the higher the tax bracket.
Taxpayers pick which filing status is most appropriate to their situation, and calculate how much income is taxable after accounting for deductions and exemptions. There are five filing statuses: single, married filing separately, married filing jointly, head of household, and qualifying widow/widower with dependent child. There are also seven marginal income tax brackets, each assigned a different tax rate. The 2025 tax brackets are below:
| 2025 Tax Brackets | ||||
|---|---|---|---|---|
| Tax rate | Single filers | Married filing jointly or qualifying widow/widower | Married filing separately | Head of household |
| 10% | Not over$11,925 | Not over $23,850 | Not over $11,925 | Not over $17,000 |
| 12% | Over $11,925 but not over $48,475 | Over $23,850 but not over $96,950 | Over $11,925 but not over $48,475 | Over $17,000 but not over $64,850 |
| 22% | Over $48,475 but not over $103,350 | Over $96,950 but not over $206,700 | Over $48,475 but not over $103,350 | Over $64,850 but not over $103,350 |
| 24% | Over $103,350 but not over $197,300 | Over $206,700 but not over $394,600 | Over $103,350 but not over $197,300 | Over $103,350 but not over $197,300 |
| 32% | Over $197,300 but not over $250,525 | Over $394,600 but not over $501,050 | Over $197,300 but not over $250,525 | Over $197,300 but not over $250,500 |
| 35% | Over $250,525 but not over $626,350 | Over $501,050 but not over $751,600 | Over $250,525 but not over $375,800 | Over $250,500 but not over $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $375,800 | Over $626,350 |