No \u2014 OBBB averted July 2025.

Capital gains in same brackets?

No \u2014 separate 0/15/20% rates for LTCG/QD.

No \u2014 federal only. Add your state rate.

2028 Federal Tax Brackets

Q: Marginal vs effective?

Marginal = next dollar. Effective = total tax \u00f7 total income.

2028 federal tax brackets: 10/12/22/24/32/35/37% (OBBB-permanent). 2028 thresholds projected from 2027 + 2.4% CPI. Effective vs marginal rate.

Taxable income ($)

Filing status

2028 Federal Tax

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Marginal

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Effective

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Taxable income	—
2028 federal tax	—
Marginal bracket	—
Effective rate	—
After-tax income	—

2028 federal tax brackets (projected): 10/12/22/24/32/35/37% — same rates as OBBB-permanent. Brackets adjust ~2.4% CPI from 2027 levels. Marginal rate = top bracket your last dollar hits. Effective rate = total tax / total income (always lower than marginal).

OBBB Made Rates Permanent

TCJA-era rates (10/12/22/24/32/35/37) were set to sunset Dec 31, 2025 and revert to 10/15/25/28/33/35/39.6. OBBB (July 2025) made them permanent. CPI-adjusted brackets continue annually.

Marginal vs Effective

Marginal: rate on next dollar earned. Effective: tax ÷ income. Bracket creep over time as income rises faster than CPI. Common confusion — entering a higher bracket only taxes income within that bracket, not all income.

Capital Gains Separate

Long-term capital gains use 0/15/20% brackets, not ordinary brackets. 2028 LTCG: 0% up to ~$50k single / $100k MFJ. 15% middle range. 20% above ~$553k single / $623k MFJ. Plus 3.8% NIIT for high earners.

State Tax Layered

Federal brackets above + state income tax (0-13.3% depending on state). Effective combined can hit 50%+ in CA/NY/HI. State residency planning is a major topic for high earners.

Last updated May 2026. Sources: IRS Brackets.