What Is a Federal Income Tax Bracket?
Investopedia defines federal tax brackets as income groupings by which the IRS determines the percentage of an individual's, corporation's or trust's lawful income tax burden. The income level for each subsequent tax bracket is based on filing status.
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Marginal Tax Rates
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As of 2010, the income levels are taxed at 10, 15, 25, 28, 33 and 35 percent respectively. Each filing status; single, married filing separately, married filing jointly and head of household; has unique income levels that are subject to the tax rates. For each individual (or business), only the income above each tax bracket but below the next bracket is taxed at the specified rate within that bracket.
Single Filers
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For single persons for the 2010 tax year, income is taxed at:
10 percent up to $8,375
15 percent of incomes between $16,751 and $34,000
25 percent between $34,001 and $82,400
28 percent between $82,401 and $171,850
33 percent between $171,851 and $373,650
35 percent of all additional income above $373,650
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Married Filing Separately
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For the 2010 tax year, the rates for married persons filing separately are:
10 percent up to $8,375
15 percent between $8,376 and $34,000
25 percent between $34,001 and $68,650
28 percent between $68,651 and $104,625
33 percent between $104,625 and $186,825
35 percent above $186,825
Married Filing Jointly
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The 2010 Tax Rates for married individuals filing jointly are:
10 percent up to $16,750
15 percent between $16,751 and $68,000
25 percent between $68,001 and $137,300
28 percent between $137,300 and $209,250
33 percent between $209,250 and $373,650
35 percent above $373,650
Head of Household
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For 2010, the tax rates for Head of Household filings are:
10 percent up to $11,950
15 percent of incomes between $11,951 and $45,550
25 percent between $45,551 and $117,650
28 percent between $117,651 and $119,550
33 percent between $119,551 and $373,650
35 percent of all additional income above $373,650
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References
- Photo Credit Tax Calculator on wooden table image by Adam Radosavljevic from Fotolia.com
