The United States has what is called a "progressive income tax," meaning that as your taxable income rises, additional income is taxed at higher rates. A person with a taxable income of less than $8,025 will pay 10 percent of her income in taxes. Those who make more than $8,025 will pay 10 percent on that income, plus a higher rate for all income over that amount. The person is in the 10 percent tax bracket until her income rises above that $8,025 level, at which point she moves into a higher tax bracket.
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Difficulty:
Easy
Instructions
1
Find out what your taxable income is. On your tax return, skip your gross income and go down to your taxable income. This is the amount that's left after all deductions are taken off your adjusted gross income.
2
Determine your filing status. The tax schedule you use to determine tax brackets depends on whether you file as a single taxpayer or as married.
3
Find the tax schedule that applies to you based on the instructions accompanying your tax return form or based on the chart available on the IRS website.
4
Go down the tax schedule until you find the largest figure that is less than your taxable income. This will reveal your taxable income range. All the taxable income you have over the smallest number in your range will be taxed at at the rate applicable to that range. This rate is your income tax bracket.
Tips & Warnings
Only the income that falls into the highest tax bracket is taxed at the higher rate. All of the income less than that is still taxed at the lower rates.
