Your marginal tax rate is the rate you pay on the NEXT dollar of income. It is usually higher than your effective (average) rate because of progressive brackets.
Uses the 2024 US federal income tax brackets. Does not include state, FICA, or local taxes.
| Bracket | Rate | Single | MFJ | HOH |
|---|
Your marginal tax rate is the rate the IRS will apply to your next dollar of income. It is set by the bracket your last taxable dollar lands in, and it is almost always higher than your effective (average) rate because progressive brackets tax the first dollars at a lower rate than the last.
Marginal rate (federal) = bracket rate at your taxable income Combined marginal = Federal + State + FICA (on wage income) Effective rate = Total tax / Total taxable income Next-dollar tax = Tax(Income + $1) - Tax(Income)
A San Francisco single filer earns $150,000 taxable in 2026. What is the marginal rate on a $10,000 bonus and how much extra tax does it create?
| Rate | Single | MFJ | HoH |
|---|---|---|---|
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $17,000 |
| 12% | $11,925 to $48,475 | $23,850 to $96,950 | $17,000 to $64,850 |
| 22% | $48,475 to $103,350 | $96,950 to $206,700 | $64,850 to $103,350 |
| 24% | $103,350 to $197,300 | $206,700 to $394,600 | $103,350 to $197,300 |
| 32% | $197,300 to $250,525 | $394,600 to $501,050 | $197,300 to $250,500 |
| 35% | $250,525 to $626,350 | $501,050 to $751,600 | $250,500 to $626,350 |
| 37% | $626,350+ | $751,600+ | $626,350+ |
Common cliff stacks above the published brackets: 3.8 percent NIIT on investment income, 0.9 percent Additional Medicare Tax on wages, Child Tax Credit phase-out (5 percent over $200K/$400K), Roth IRA phase-out, and state taxes from 0 to 13.3 percent.
Working bracket walker that returns both marginal and effective rates for any filing status and state.
Open US Income Tax Calculator →Marginal is the rate the tax code applies to your next dollar of income, set by the bracket you happen to land in. Effective is total tax divided by total income, a blended average across every bracket your income passed through. In any progressive system the effective rate is always lower than the marginal rate. A 2026 single filer at $100,000 taxable has a 22 percent marginal federal rate but an effective rate of roughly 17.4 percent.
The marginal rate is the true cost of taking on extra income (overtime, side gig, RSU vest, Roth conversion) and the true value of a deduction. A $1,000 deductible expense saves you $220 at a 22 percent marginal rate, not $1,000. Decisions like Traditional vs Roth, charitable giving, and whether to accept a bonus all hinge on the marginal rate, not the effective one.
No, they are withheld at a higher rate but taxed at the same rate. The IRS supplemental withholding rule applies a flat 22 percent federal withholding on bonuses under $1 million (37 percent above that), plus FICA. Year-end reconciliation on Form 1040 settles the actual tax based on your marginal bracket, so over-withholding becomes part of your refund and under-withholding becomes a tax bill.
The published bracket is not the whole story. Common effective spikes include: the 3.8 percent Net Investment Income Tax above $200,000 single / $250,000 joint; the 0.9 percent Additional Medicare Tax at the same thresholds; the Child Tax Credit phase-out starting at $200,000 / $400,000; the Roth IRA phase-out at $150,000 to $165,000 single; the QBI deduction phase-out at $191,950 single; and the Saver's Credit phase-out under $39,500.