How to Figure Income Tax Percentages

All residents of the United States, if receiving some type of income, are mandated by law to pay a federal income tax each year. A portion of your annual income for the year is taken, based on how much you made. Incomes are put into tax brackets, and each tax bracket has its own tax percentages. For 2010, the tax brackets were: 10% of 0- $8,375, 15% of $8,375- $34,000, 25% of $34,000- $82,400, 28% of $82,400- $171,850, 33% of $171,850- $373,650, and 35% of $373,650 or more.

Things You'll Need

• Calculator

Instructions

1. Add together all your total income for the year you are filing. This includes your salary as well as any other monetary gains, including investments that turned a profit for you.

2. Pick out which tax bracket you fall into based on your total income. For example, if you made $80,000, you would fall into the $34,000- $82,400 bracket.

3. Identify the tax percentage that accompanies your bracket. Using the example above, your bracket would have a 25% tax percentage.

4. Multiply your total income by your tax percentage to determine how much you owe. Using the above example, you would owe $20,000 in taxes (80,000 x .25).

References

• Bargaineering: 2010 Federal Income Tax Brackets