How to Calculate Federal Income Tax

There are several ways of calculating your federal income tax but I use Quick Books 2009 to help calculate my income tax for payroll. I have found several resources online to calculate my federal income tax withholding rates but as you will see in this article your rates will fall between 10%-35% depending on your gross income.

Instructions

1. 

   To calculate your federal income tax you must know where taxable income falls, such as if it is between zero (0) and $8,350.00 your tax bracket is 10% and you can calculated your federal income tax by taking $8,350.00 minus 0 times (X) .10 = $835.00

2. 

   To calculate your federal tax rate use this taxable income bracket:

   If you make:
   $8,350 - $33,950 = 15%
   $33,950 - $82,250 = 25%
   $82,250 - $171,550 = 28%
   $171,550 - $372,950 = 33%
   $372,950 - and above = 35%

   So if you make $500,000 a year you should expect to pay 35% in federal in come taxes or $175,000.00

3. 

   Married filing jointly, married filing separately, and head of household all have different rates but I have provided a link at the bottom of this page to where you can learn more about how to calculate your federal income tax withholding rate.

Resources

• Tax Brackets Chart
• Flooring