Federal Tax Brackets in 2025: Understanding the Basics

Understanding federal tax systems can be a confusing task. Are you one of those businesses struggling to file under the right federal tax bracket? The United States uses a progressive tax system. The higher you earn, the higher the tax you pay. The current federal tax brackets are divided into seven income tax rates as per the Internal Revenue Service (IRS USA). The tax rate ranges from 10% to 37% depending on many factors.

According to a study, about 53% of taxpayers feel that the federal tax system is complex and difficult to comprehend. Moreover, the federal tax code is a lengthy document clocking over 4000 pages. (Internal Revenue Code, 22nd Edition).

In this blog, we will briefly understand the federal tax brackets and other crucial taxing parameters.

Number of printed pages of Internal Revenue Code (IRC) from the year 1996 to 2022. Source: Pew Research Centre

What Are the Federal Tax Brackets?

The United States follows seven federal tax brackets as defined by the IRS. The income tax rate ranges from 10% to 37%. The tax rates are divided systematically into 10%, followed by 12%, 24%, 32%, 35%, and lastly 37% bracket. In the latest 2025 edition, tax filers can also adjust inflation while filing their tax returns. 

Table Showcasing Current Federal Tax Brackets (2025)

If you are looking for answers to what the federal income tax brackets are, the table below has all the relevant figures one should know: 

 

Percentage Tax Bracket Range	Amount Range (Individual Filing)	Amount Range (Married Joint or Widow Filing)	Amount Range (Married Separate Filing)	Household Head
10% Bracket	Up to $ 11925	Up to $ 23850	Up to $ 11925	Up to $ 17000
12% Bracket	Starting from $ 11926 up to $ 48475	Starting from $ 23851 up to $ 96950	Starting from $ 11926 up to $ 48475	Starting from $ 17001 up to $ 64850
22% Bracket	Starting from $ 48476 up to $ 103351	Starting from $ 96951 up to $ 206700	Starting from $ 48476 up to $ 103351	Starting from $ 64851 up to $ 103350
24% Bracket	Starting from $ 103351 up to $ 197300	Starting from $ 206701 up to $ 394600	Starting from $ 103351 up to $ 197301	Starting from $ 103351 up to $ 197300
32% Bracket	Starting from $ 197301 up to $ 250526	Starting from $ 394601 up to $ 501050	Starting from $ 197301 up to $ 250525	Starting from $ 197300 up to $ 250525
35% Bracket	Starting from $ 250526 up to $ 626350	Starting from $ 501051 up to $ 751600	Starting from $ 250526 up to $ 375800	Starting from $ 250526 up to $ 626350
37% Bracket	Over $ 626351	Over $ 751601	Over $ 375801	Over $ 626351
The standard deductions for single filings are $ 15000, for married joint filings are $ 30000, and for the household heads are $ 22500.

How Does the Federal Taxing System Work?

Remember that federal tax is not the only tax method. There are marginal tax and effective tax rates. Marginal tax is the highest tax rate while effective tax is the average tax rate you pay to the government. 

For example, if you are a single individual and your taxable income is $ 100000 for the year 2025. Your marginal tax will be 22% but your income may fall into different brackets. You don’t need to be taxed at the highest tax rate. 

Concluding Thoughts

The federal tax brackets may seem to be complex and cumbersome. But once you get hold of your taxable income, deductions, and adjusted gross income, tax filing can become easy. If you are still wondering what the federal income tax brackets are? It is between 10 to 37% range. Using taxing software, filing tax returns can be a cakewalk. 

Are you looking for a tax hosting service? Try the tax hosting software today. 

FAQs (Frequently Asked Questions)

What are the 2024 federal tax brackets?

The federal tax bracket is divided into seven tax ranges. The range is between 10% to 37%. 

How much federal tax do you pay on $ 50,000?

You will end up paying around $ 5700 tax. And you will fall in the 10%, 12%, and 22% tax brackets. (Type of taxpayer, deductions, and inflation adjustments can change the tax amount)

How much federal tax should be paid on $ 100,000?

You will end up paying approx $ 17053 tax. (Type of taxpayer, deductions, and inflation adjustments can change the tax amount). 

How do you avoid the 22% tax bracket?

You can lower your tax amount by adding the relevant deductions and benefits. The federal tax brackets are as per your income amount. 

What are the 7 income tax brackets?

The 7 income tax brackets are divided into 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your taxable income is decided based on your total income.