bromear

To joke around, kid, or tease — the standard verb for making jokes in conversation, as opposed to contar chistes (to tell jokes/anecdotes specifically). Estar bromeando (to be kidding) is the everyday way to say 'just kidding.'

• No te enojes, solo estaba bromeando. — Don't get mad, I was just joking.
• Siempre bromea con sus compañeros de trabajo. — He's always joking around with his coworkers.
• ¿Bromeas? ¡Eso es increíble! — Are you kidding? That's incredible!

Bromear is about the act of joking around generally, not necessarily telling a structured joke — for 'to tell a joke' (a specific one), contar un chiste is the more precise phrase.