Federal Income Tax: What It Is and the Current Rates
What federal income tax is, the current rates from 10% to 37%, and how to work out roughly how much applies to an income, with a table and free calculator.
"How much is federal income tax?" is one of the most-searched tax questions, and the honest answer is: it depends on your income, but in a very predictable way. This guide covers what the tax is, the current rates, and how to turn those rates into a real number for your own income.
What federal income tax is
Federal income tax is the tax the US government charges on what you earn. It applies the same way in all fifty states, it's usually the largest tax on a paycheck, and for most employees it's collected gradually through withholding rather than in one bill. It is separate from FICA (Social Security and Medicare taxes), which comes out of your pay on top of it.
If you want the bigger picture of how federal, state, and payroll taxes fit together, start with what is income tax.
The current federal rates
There is no single "federal income tax rate". The system currently uses seven rates, and each one applies only to the part of your taxable income that falls inside its bracket:
| Taxable income | Marginal rate |
|---|---|
| Up to $12,400 | 10% |
| $12,400 – $50,400 | 12% |
| $50,400 – $105,700 | 22% |
| $105,700 – $201,775 | 24% |
| $201,775 – $256,225 | 32% |
| $256,225 – $640,600 | 35% |
| Over $640,600 | 37% |
Two things to keep in mind when reading this table:
- The thresholds change every year with inflation, which is why the table names a tax year. This one always shows the most recent year in our data.
- The brackets apply to taxable income: for most people, salary minus the standard deduction. So the tax is figured on a smaller number than your full salary.
How much federal income tax you actually pay
Because of the brackets, your top rate is not what you pay on everything. Someone "in the 22% bracket" pays 10% and 12% on the lower parts of their income, and 22% only on the part above that bracket's threshold. Our guide on how tax brackets work walks through the math with examples.
The result is that your effective rate (total tax divided by total income) is always lower than your marginal rate (the rate on your last dollar). For a real number for your own situation, the calculator runs any income through the current brackets and shows the tax, both rates, and your estimated take-home pay, including your state's tax if it has one.
What changes it
The same salary can produce different federal tax bills. The biggest reasons:
- Filing status: single, married filing jointly, married filing separately, or head of household. Each has its own bracket thresholds and standard deduction.
- Deductions: amounts subtracted before tax is calculated, like the standard deduction or pre-tax retirement contributions.
- Credits: amounts subtracted from the tax itself, which depend on personal circumstances.
Those details are personal, which is why exact answers come from a return (or a tax professional), while tables and calculators give the shape of the answer.
Sources
Frequently asked questions
What is federal income tax?
Federal income tax is the tax the US government charges on what you earn: wages, self-employment income, and most investment income. It works the same in every state and is usually the largest tax on a paycheck. It funds national programs like defense, Social Security, and Medicare.
What is the federal income tax rate?
There isn't one single rate. The federal system currently has seven rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%), and each rate applies only to the part of your taxable income that falls in its bracket. The thresholds change each year with inflation.
How much is federal income tax on my income?
It depends on your taxable income (income after deductions) and your filing status, so two people with the same salary can owe different amounts. The way to get a real number is to run your own income through the brackets, which our free calculator does in seconds.
Is federal income tax the same in every state?
Yes. The federal brackets and rates are identical nationwide. What changes from state to state is the extra state income tax, which ranges from its own brackets to nothing at all.
Why was my federal withholding different from what I owe?
Withholding is an estimate taken from each paycheck during the year. The exact tax is only settled when you file your return. If too much was withheld you get a refund; if too little, you pay the difference.