Federal Tax Brackets

http://www.moneychimp.com/features/tax_brackets.htm

our tax bracket is the rate you pay on the "last dollar" you earn; but as a percentage of your income, your tax rate is generally less than that. First, here are the tax rates and the income ranges where they apply:



Tax Year:
Filing Status:
If your taxable income is between... your tax bracket is:
and %
and %
and %
and %
and %
and %

To take an example, suppose your taxable income (after deductions and exemptions) was exactly $100,000 in 2008 and your status was Married filing separately; then your tax would be calculated like this:

( $ 8,025 minus 0 ) x .10 : $ 802.50
( 32,550 minus 8,025 ) x .15 : 3,678.75
( 65,725 minus 32,550 ) x .25 : 8,293.75
( 100,000 minus 65,725 ) x .28 : 9,597.00
Total: $ 22,372.00

This puts you in the 28% tax bracket, since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 22.37%.

This next calculator lets you try it out with your own numbers:

Tax Year:
Filing Status:
Taxable Income: $
Tax: $
...as a percentage of income: %
Tax Bracket: %



"Taxable Income" here is really Regularly Taxed Income minus Adjustments, Deductions, and Exemptions.

Payroll Tax (Social Security and Medicare), and Qualified Dividends and Long Term Capital Gains are separate calculations.