The percentage of tax you pay depends on your taxable income and filing status. The U.S. federal income tax rates range from 10% to 37% in 2023. The federal income tax rates remain unchanged for the 2023 tax year at 10%, 12%, 22%, 24%, 32%, 35%, and 37% . These are marginal rates, meaning that each rate applies only to a specific slice of income, rather than to your total income. For example, if you are single and have taxable income of $200,000 in 2023, then you are in the 32% "bracket." However, you won’t pay 32% on your entire taxable income. Instead, you pay taxes as follows:

• 10 percent on your taxable income up to $11,000
• 12 percent on the excess up to $44,725
• 22 percent on taxable income between $44,725 and $95,375
• 24 percent on the amount over $95,375 up to $182,100
• 32 percent on the amount over $182,100 up to $200,000

Once all deductions are accounted for, and tax credits awarded, then the income total that is leftover is your taxable income. That income falls into a tax bracket and you pay the percentage within that bracket. Its important to note that not all your income is taxed at the rate of your tax bracket. Instead, the U.S. income tax system uses a graduated tax system, designed so that individual taxpayers pay an increasing rate as their income rises as outlined in the tax brackets above.