What puts me in the 27% marginal tax rate bracket for 2025?

The 2025 tax brackets don't actually have a 27% marginal rate - you're probably thinking of the 24% or 32% brackets. For single filers in 2025, the brackets are roughly: 10% - Up to $11,600 12% - $11,601 to $47,150 22% - $47,151 to $100,525 24% - $100,526 to $191,950 32% - $191,951 to $243,725 35% - $243,726 to $609,350 37% - $609,351 and up With your $110,000 income, you'd be in the 24% marginal bracket, assuming those are the final numbers after any adjustments for inflation. That means only the dollars above $100,526 would be taxed at 24%. Remember that your marginal tax rate only applies to income above that threshold - you'll still pay 10% on the first chunk, 12% on the next chunk, and so on. Your effective tax rate (what you actually pay overall) will be much lower than 24%.

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Something everyone seems to be missing here is the marginal vs. effective tax rate distinction. Your marginal rate only applies to the last dollars you earn. At $110k as a single filer, your effective federal rate would be around 17-18%, way lower than the 24% marginal rate. Also, if you're close to a bracket cutoff, remember that tax-advantaged contributions like 401k, HSA, and certain deductions can lower your taxable income and potentially keep you in a lower bracket.

Has anyone used FreeTaxUSA for calculating potential tax brackets? I'm in a similar situation to the OP and trying to figure out if I should do some tax loss harvesting before year end to offset gains.

Great question about the 2025 tax brackets! Just to add some practical context to what others have shared - with your $110k income, you'll definitely be in the 24% marginal bracket for federal taxes. But here's what I'd focus on: 1. **Stock options timing**: If you're planning to exercise stock options, consider spreading it across tax years if possible. A large exercise could push you well into the 24% bracket or even higher. 2. **Max out tax-advantaged accounts**: You can contribute up to $23,500 to your 401k in 2025 (if you're under 50). Every dollar you put in reduces your taxable income dollar-for-dollar. 3. **Don't forget FICA**: Remember that Social Security and Medicare taxes (7.65%) apply to your wages regardless of income tax brackets. The strategies to stay in lower brackets really depend on how close you are to the $100,526 cutoff after your 401k contributions and other deductions. If you're right on the edge, maximizing your HSA contributions (if available) and considering a traditional IRA contribution could help. What state are you in? That'll make a big difference in your total tax picture.