The US uses a progressivefederal income tax: income is split into bands, and each band is taxed at its own rate. Understanding this kills the most common tax myth — that a raise can leave you with less money. It can't.
How brackets actually work
There are seven federal rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37%. They apply to taxable income (your income after the standard deduction). Crucially, only the dollars insidea bracket are taxed at that bracket's rate. If you move into the 22% bracket, only the dollars above that threshold are taxed at 22% — everything below is still taxed at 10% and 12%.
The standard deduction comes first
Before any bracket applies, you subtract the standard deduction for your filing status. Most people take it rather than itemizing. So your first chunk of income is effectively taxed at 0%.
Why a raise never costs you money
Because only the dollars in the higher band get the higher rate, earning more always leaves you with more after tax. "Getting bumped into a higher bracket" only changes the rate on the extra income, never the income you already had. (The one nuance: crossing certain income thresholds can phase out specific credits — but the brackets themselves never penalize a raise.)
Marginal vs effective rate
Your top bracket is your marginal rate. Your effective rate — total federal tax ÷ income — is always lower because of those cheaper lower bands. See how to calculate take-home pay for the full picture including state tax and FICA.
See your real numbers
The paycheck calculator shows your federal tax, marginal rate, and effective rate for any salary and filing status — using the current-year brackets and standard deduction, sourced and dated on the methodology page.