Taxpayers fall into one of seven 2016 tax brackets, depending on their taxable income: 10%, 15%, 25%, 28%, 33%, 35% or 39.6%. Because the U.S. tax system is a progressive one, as income rises, increasingly higher taxes are imposed. But those in the highest tax bracket don’t pay the highest rate on all their income. For example, in the 2016 tax year, single individuals pay 39.6% only on income above $415,050 (above $466,950 for married filing jointly); the lower tax rates are levied at the income brackets below that amount, as shown in the table below.

The table displays 2016 tax brackets according to filing status: single, married filing jointly or qualifying widower, head of household and married filing separately. The IRS makes inflation adjustments each year.

2016 tax bracket rates
Tax rate Single Head of household
10% $0 to $9,275 $0 to $13,250
15% $9,276 to $37,650 $13,251 to $50,400
25% $37,651 to $91,150 $50,401 to $130,150
28% $91,151 to $190,150 $130,151 to $210,800
33% $190,151 to $413,350 $210,801 to $413,350
35% $413,351 to $415,050 $413,351 to $441,000
39.6% $415,051 or more $441,001 or more
Tax rate Married filing jointly or qualifying widow Married filing separately
10% $0 to $18,550 $0 to $9,275
15% $18,551 to $75,300 $9,276 to $37,650
25% $75,301 to $151,900 $37,651 to $75,950
28% $151,901 to $231,450 $75,951 to $115,725
33% $231,451 to $413,350 $115,726 to $206,675
35% $413,351 to $466,950 $206,676 to $233,475
39.6% $466,951 or more $233,476 or more