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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 the next tax bracket?
The next tax bracket is 12% of taxable income levels between $11,601 to $47,150. The tax rates continue to increase as someone’s income moves into higher brackets. The IRS uses different federal income tax brackets and ranges depending on filing status: Read more in Viewpoints about how tax brackets work.What happens if your income jumps to a higher tax bracket?
When your income jumps to a higher tax bracket, you don't pay the higher rate on your entire income. You pay the higher rate only on the part that's in the new tax bracket. For a single taxpayer, the rates are: on taxable income from . . . up to . . . Here’s how that works for a single person earning $58,000 per year: