US Federal Income Tax: How Tax Brackets Work (2024)

Updated October 2026 · 5 min read

The US uses a progressive federal income tax system. This means the more you earn, the higher the rate applied — but only to the portion of income that falls within each bracket. Understanding how this works prevents a very common misconception.

2024 Federal Income Tax Brackets (Single Filers)

Marginal Rate vs Effective Tax Rate

If you earn $80,000 as a single filer, you are in the 22% bracket. But you do NOT pay 22% on all $80,000. You pay:

• 10% on the first $11,600 = $1,160
• 12% on $11,601–$47,150 = $4,266
• 22% on $47,151–$80,000 = $7,227
• Total: $12,653

Your marginal rate is 22% (the rate on your last dollar). Your effective rate is $12,653 ÷ $80,000 = 15.8%. That is what you actually pay on average.

Standard Deduction (2024)

Before applying tax brackets, you reduce your income by the standard deduction (or itemised deductions if higher):

• Single: $14,600
• Married filing jointly: $29,200
• Head of household: $21,900

This means a single filer earning $80,000 has a taxable income of only $80,000 − $14,600 = $65,400 before brackets are applied.