Your real marginal tax rate
Why the rate on your next dollar is usually higher than your federal bracket alone.
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Read the full guide: Marginal Tax Rate: What It Means and How to Find Yours
Transcript
Your real marginal rate
Your marginal rate is the share of your next dollar of income that goes to tax.
For federal income tax it matches your bracket: 10 to 37 percent in 2026.
But payroll tax adds 7.65% on wages up to the $184,500 wage base.
A single filer on $90,000 of wages faces 22% income tax plus 7.65% payroll tax.
Credit phase-outs can push the real rate higher still, without changing your bracket.
High incomes add surtaxes: 0.9% additional Medicare tax and 3.8% on net investment income.
