What Are the Federal Income Tax Brackets for 2023?
Learn how the progressive tax system applies to your earnings for 2023. This guide clarifies how different portions of your income are taxed at different rates.
Federal income tax brackets determine the rate at which an individual’s income is taxed. The U.S. uses a progressive tax system, where higher portions of income are taxed at increasingly higher rates. The income ranges for these brackets are adjusted annually by the Internal Revenue Service (IRS) to account for inflation. This adjustment helps prevent “bracket creep,” where inflation pushes a taxpayer into a higher tax bracket without an increase in real income.
Understanding How Tax Brackets Work
The U.S. tax system is marginal, meaning you pay different tax rates on different portions of your income. If a pay raise pushes you into a higher bracket, your entire income is not taxed at the new rate. Only the money you earn within that higher bracket is taxed at that bracket’s rate.
Think of your income as filling a series of buckets, each representing a tax bracket. The first bucket must be filled at the lowest tax rate before any money spills into the next bucket, which is taxed at a higher rate. This structure ensures a gradual increase in the overall tax paid as income rises.
2025 Federal Income Tax Brackets and Standard Deductions
For the 2025 tax year, which you file in early 2026, there are seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income thresholds for these brackets depend on your filing status: Single, Married Filing Jointly, Married Filing Separately, or Head of Household.
2025 Federal Income Tax Brackets
| Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| :— | :— | :— | :— | :— |
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $11,925 | $0 to $17,000 |
| 12% | $11,926 to $48,475 | $23,851 to $96,950 | $11,926 to $48,475 | $17,001 to $64,850 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $48,476 to $103,350 | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,525 | $197,301 to $250,500 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,526 to $375,800 | $250,501 to $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $375,800 | Over $626,350 |
Most taxpayers can reduce their taxable income by taking the standard deduction, which is a fixed dollar amount. For 2025, the standard deduction for single filers and those married filing separately is $15,000. For married couples filing jointly, it is $30,000, and for heads of household, it is $22,500.
Calculating Your Taxable Income
Before applying the tax brackets, you must determine your taxable income. First, calculate your gross income, which includes all income from sources like wages, dividends, and capital gains not exempt from tax. From your gross income, subtract any “above-the-line” deductions, such as traditional IRA contributions or student loan interest, to find your Adjusted Gross Income (AGI).
Your AGI is used to determine eligibility for various tax credits and other deductions. Finally, subtract either the standard deduction or your itemized deductions from your AGI to arrive at your taxable income. You should itemize only if your total itemized deductions, like mortgage interest or charitable contributions, exceed the standard deduction for your filing status.
How to Calculate Your Federal Income Tax
Once you have your taxable income, you can calculate your federal income tax. For example, consider a single filer with a taxable income of $90,000 for 2025. The income is taxed in pieces according to the brackets for that filing status.
The first $11,925 of income is taxed at 10%, which equals $1,192.50. The next portion of income, from $11,926 up to $48,475, is taxed at 12% for a total of $4,386. The final portion of income, from $48,476 up to $90,000, falls into the 22% bracket and is taxed $9,135.50.
To find the total tax liability before credits, you sum the tax from each bracket: $1,192.50 + $4,386 + $9,135.50 equals $14,714. This amount may be reduced by any tax credits for which the individual is eligible.