How marginal brackets work
Your income is taxed in layers. Only the slice of taxable income inside each bracket is taxed at that bracket's rate. Here's what single filers owe at common incomes after the $16,100 standard deduction:
| Gross income | Taxable income | Federal income tax | Effective rate |
|---|---|---|---|
| $50,000 | $33,900 | $3,820 | 7.6% |
| $75,000 | $58,900 | $7,670 | 10.2% |
| $100,000 | $83,900 | $13,170 | 13.2% |
| $150,000 | $133,900 | $24,734 | 16.5% |
| $250,000 | $233,900 | $51,304 | 20.5% |
Other 2026 payroll tax numbers
- Social Security: 6.2% employee rate on wages up to $184,500.
- Medicare: 1.45% on all wages, plus 0.9% on wages above $200,000 (withholding threshold).
- Child tax credit: $2,200 per qualifying child under 17.
- Supplemental (bonus) withholding: 22% flat, 37% over $1 million.
- New deductions (2025–2028): qualified tips (up to $25,000), qualified overtime (up to $12,500 / $25,000 joint), seniors 65+ ($6,000 each) and new-car loan interest (up to $10,000).
See how these numbers hit your paycheck with the paycheck calculator.