From Wall Street Journal:

Tax brackets determine your tax bill based on your taxable income. As taxable income increases, each layer gets taxed at progressively higher rates. A single person with $140,000 taxable income in 2024 would fall into the 24% tax bracket. However, their effective tax rate would be lower than the top rate. This means not all of their income is taxed at 24%. Understanding how tax brackets work is essential for managing your taxes effectively.



Read more: What the 2024 Tax Brackets Mean for Your Money