How Do I Know Which Tax Bracket I Am In?

Introduction

Understanding your federal tax bracket is essential for planning your finances, estimating your tax bill, and making smart decisions about withholdings or deductions. Many people wonder how to figure out which bracket they fall into—it’s simpler than you might think.

Step 1: Determine Your Taxable Income

Your tax bracket is based on your taxable income, not your gross income. To find this number:

  1. Start with your total income (wages, self-employment income, dividends, etc.).

  2. Subtract deductions—either the standard deduction or itemized deductions, whichever is higher for you.

For example, in 2024, the standard deduction is:

  • $14,600 for single filers

  • $29,200 for married couples filing jointly

Example:
 If you earn $70,000 and take the standard deduction ($14,600), your taxable income would be $55,400.

Step 2: Identify Your Filing Status

The IRS has four main filing statuses, and each has different tax brackets:

  • Single

  • Married Filing Jointly

  • Married Filing Separately

  • Head of Household

Your status affects which tax brackets apply to you. For instance, a single filer reaches the 22% bracket at a lower income than a married couple filing jointly.

Step 3: Use IRS Tax Tables or Online Calculators

Once you know your taxable income and filing status, you can:

  • Refer to the official IRS tax tables for the current tax year.

  • Use a reputable online tax calculator, which does the math for you.

Tax brackets are progressive, meaning only the income within each bracket is taxed at that rate—not your entire income.

Example (2024 Single Filer):

  • 10% on the first $11,600

  • 12% on income from $11,601 to $47,150

  • 22% on income from $47,151 to $100,525

So if your taxable income is $55,400, part is taxed at 10%, part at 12%, and part at 22%.

Conclusion

To find your tax bracket, calculate your taxable income by subtracting deductions from your gross income, identify your filing status, and consult IRS tax brackets or use a calculator. Knowing your bracket helps you plan better for taxes and savings.

George Dimov