What is a tax bracket?

Your tax bracket is the rate that is applied to your top slice of income. Learn more about tax brackets and use the tax rate calculator to find yours . What is taxable income? Taxable income typically includes wages, salaries, bonuses, commissions, and tips, but can be complex as the IRS classifies other types of earnings as taxable income as well.

What is a marginal tax bracket?

The tax bracket your top dollar of income reaches is your marginal tax bracket. This bracket is your highest tax rate, which applies to the top portion of your income. Use our federal income tax bracket calculator below to find your marginal tax percentage. What Is an Effective Tax Rate?

Does a higher tax bracket mean higher tax rates?

In the U.S., we have a progressive tax system, so different parts of your income are taxed at different rates. Only the income in the higher bracket is taxed at that rate. The rest is taxed at the lower rates. So, a higher tax bracket doesn't mean a higher rate on all your income. See the current federal income tax brackets .