A range of income taxed at a specific marginal rate.
The U.S. has seven federal brackets (10% to 37% in 2025). Each bracket only taxes the income within its range — see marginal vs effective rate for why “moving into a higher bracket” never reduces take-home pay.
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FAQ
What is Tax Bracket in simple terms?
The U.S. has seven federal brackets (10% to 37% in 2025). Each bracket only taxes the income within its range — see marginal vs effective rate for why “moving into a higher bracket” never reduces take-home pay.