What is your federal income tax bracket?

Your income each year determines which federal tax bracket you fall into and which of the seven income tax rates applies. Knowing your federal tax bracket is essential, as it determines your federal income tax rate for the year. There are seven different income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

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?

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.