Your tax rate is the percentage of income you pay in taxes, but it isn’t the same for all the money you earn. Different portions of income you earn are taxed at specific rates called tax brackets.
For tax years 2024 and 2025, there are seven different tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The Internal Revenue Service (IRS) provides annual inflation adjustments to the income ranges within each bracket.
Note that capital gains tax brackets are different from the federal income tax rates listed above. Most capital gains are taxed at rates of 0%, 15%, or 20%, depending on your overall taxable income.
For more on this story, please visit Yahoo.com.