Tax Brackets Cheat Sheet
2025 Federal Income Tax Brackets
Single Filers
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $11,925 | 10% of taxable income |
| 12% | $11,926 – $48,475 | $1,192.50 + 12% of amount over $11,925 |
| 22% | $48,476 – $103,350 | $5,578.50 + 22% of amount over $48,475 |
| 24% | $103,351 – $197,300 | $17,651.00 + 24% of amount over $103,350 |
| 32% | $197,301 – $250,525 | $40,199.00 + 32% of amount over $197,300 |
| 35% | $250,526 – $626,350 | $57,231.00 + 35% of amount over $250,525 |
| 37% | $626,351+ | $188,769.75 + 37% of amount over $626,350 |
Married Filing Jointly
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $23,850 | 10% of taxable income |
| 12% | $23,851 – $96,950 | $2,385.00 + 12% of amount over $23,850 |
| 22% | $96,951 – $206,700 | $11,157.00 + 22% of amount over $96,950 |
| 24% | $206,701 – $394,600 | $35,302.00 + 24% of amount over $206,700 |
| 32% | $394,601 – $501,050 | $80,398.00 + 32% of amount over $394,600 |
| 35% | $501,051 – $751,600 | $114,462.00 + 35% of amount over $501,050 |
| 37% | $751,601+ | $202,154.50 + 37% of amount over $751,600 |
Capital Gains Tax Rates (2025)
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| Single | Up to $48,350 | $48,351 – $533,400 | Over $533,400 |
| Married Filing Jointly | Up to $96,700 | $96,701 – $600,050 | Over $600,050 |
| Head of Household | Up to $64,750 | $64,751 – $566,700 | Over $566,700 |
Short-term capital gains (assets held less than 1 year) are taxed at ordinary income rates. Long-term capital gains (held 1+ year) get the preferential rates above.
Standard Deduction (2025)
| Filing Status | Standard Deduction | Additional (65+ or Blind) |
|---|---|---|
| Single | $15,000 | +$2,000 |
| Married Filing Jointly | $30,000 | +$1,600 per qualifying spouse |
| Head of Household | $22,500 | +$2,000 |
| Married Filing Separately | $15,000 | +$1,600 |
Marginal vs. Effective Tax Rate
Your marginal rate is the tax on your last dollar earned. Your effective rate is your average rate across all income. A single filer earning $100,000 in 2025 has a 22% marginal rate but an effective rate of roughly 17%.
Net Investment Income Tax (NIIT)
High earners pay an additional 3.8% surtax on investment income (dividends, capital gains, interest, rental income) above these thresholds:
| Filing Status | MAGI Threshold |
|---|---|
| Single | $200,000 |
| Married Filing Jointly | $250,000 |
| Married Filing Separately | $125,000 |
Key Takeaways
- The US uses a progressive tax system — only income within each bracket is taxed at that rate
- Long-term capital gains are taxed at preferential rates (0%, 15%, or 20%)
- Your effective tax rate is always lower than your marginal rate
- The standard deduction reduces taxable income before brackets apply
- Tax brackets adjust annually for inflation — always check current year figures
Frequently Asked Questions
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate on your last dollar of income — it’s your highest bracket. Your effective rate is the average rate across all your income. Everyone’s effective rate is lower than their marginal rate because of the progressive system.
How do tax brackets work with investment income?
Short-term capital gains and ordinary dividends are added to your regular income and taxed at ordinary rates. Long-term capital gains and qualified dividends have their own preferential rate schedule (0%, 15%, or 20%).
Does a higher tax bracket mean all my income is taxed at that rate?
No. This is the most common tax misconception. Only the income within each bracket is taxed at that rate. If you move from the 22% to the 24% bracket, only the dollars above the 22% threshold are taxed at 24%.
What is the 3.8% net investment income tax?
The NIIT is a surtax on investment income for high earners. It applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold ($200k single, $250k married). It effectively adds 3.8% to the capital gains rate for high-income investors.
How can I reduce my taxable income?
Maximize 401(k) and Traditional IRA contributions, use HSA contributions, apply tax-loss harvesting, hold investments for over 1 year for long-term rates, and consider charitable giving strategies. Each strategy reduces taxable income at your marginal rate.