What income tax bracket do I fall into?
Answer:
Your tax bracket is dependent on your filing status and your Taxable Income. Taxable Income is equal to your Gross Income, minus your itemized or standard deductions, minus your exemption amounts.
The tax bracket reflects the highest range of taxable income that your taxable income falls into and is taxed at that bracket rate. It does not mean that your "total" taxable income is taxed at that (10%, 15%, 25%, 28%, 33%, 35%,) bracket rate.
Therefore your tax liability on your taxable income is a graduated calculation.
The bottom layer of income is taxed at the 10% rate and the next layer is taxed at the 15% rate and the next layer is taxed at the 28% rate and the next layer is taxed at the 33% rate and the last layer is taxed at the 35% rate. This yields an "effective" blended rate at which your total income liability is calculated.
The current year consisits of 6 tax brackets and 6 tax rates. Income tax rates for individuals for the current year are 10%, 15%, 25%, 28%, 33%, and 35%.
The higher bracket and rates start at $8,701, $35,351, $85,651, $177,651, and $388,351 for a single person;
$17,401, $70,700, $142,701, $217,451 and $388,351 for married filing jointly and Qualifying Widower; $12,401, $47,351, $122,301, $198,0501 and $388,351
for head of household: $8,701, $35,351, $71,351, $108,726, and $194,175 for married filing separately.
The tax bracket reflects the highest range of taxable income that your taxable income falls into and is taxed at that bracket rate. It does not mean that your "total" taxable income is taxed at that (10%, 15%, 25%, 28%, 33%, 35%,) bracket rate.
Therefore your tax liability on your taxable income is a graduated calculation.
The bottom layer of income is taxed at the 10% rate and the next layer is taxed at the 15% rate and the next layer is taxed at the 28% rate and the next layer is taxed at the 33% rate and the last layer is taxed at the 35% rate. This yields an "effective" blended rate at which your total income liability is calculated.
The current year consisits of 6 tax brackets and 6 tax rates. Income tax rates for individuals for the current year are 10%, 15%, 25%, 28%, 33%, and 35%.
The higher bracket and rates start at $8,701, $35,351, $85,651, $177,651, and $388,351 for a single person;
$17,401, $70,700, $142,701, $217,451 and $388,351 for married filing jointly and Qualifying Widower; $12,401, $47,351, $122,301, $198,0501 and $388,351
for head of household: $8,701, $35,351, $71,351, $108,726, and $194,175 for married filing separately.
