IRS Tax Bracket Information

Your income places you in a tax bracket.

In the U.S. tax system, the Internal Revenue Service (IRS) utilizes tax brackets when determining how much to levy. These tax brackets change annually depending on factors such as inflation and cost of living.

Progressive Tax

Tax brackets highlight the United States' progressive tax system. A progressive tax taxes people at a higher rate if they have a higher income. People with a lower income will have a lower rate.

Filing Status

When you file your return, you must pick a status: single, married filing jointly, married filing separately or head of household. The tax rate at the same income level is different depending on filing status.

Income Level

The primary breakdown of tax brackets is by income level. For example, in 2010, income bracket levels for singles were: 0 to $8,375, $8,375 to $34,000, $34,000 to $82,400, $82,400 to $171,850, $171,850 to $373,650 and over $373,650.

Tax Rates

For 2010, the six tax rate levels were 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent.

Determining Tax Level

The tax is determined at each level. For example, the IRS taxes a single person's first $8,375 at a rate of 10 percent, then any money made between the income levels of $8,375 and $34,000 at a rate of 15 percent.

References

• IRS: Form 1040 Tax Tables
• Money Chimp: Tax Brackets
• Investopedia: Progressive Tax