A range of income taxed at a specific marginal rate in the progressive tax system.
A tax bracket is a range of income subject to a specific marginal tax rate. The U.S. uses a progressive tax system with multiple brackets; your marginal rate increases as income rises. For 2024, single filers have seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. You don't jump from one bracket to another—only income within each bracket is taxed at that rate. For example, if you earn $60,000 (single), you pay 10% on the first $11,600, 12% on the next $35,550, and 22% on the remainder. Understanding your tax bracket helps with tax planning: reducing income (through retirement contributions, charitable giving) to avoid moving into a higher bracket can save substantial taxes.