Tax Brackets (Federal Income Tax Rates) 2000 through 2010 and 2011.
Federal Tax Brackets
Your tax bracket is the rate you pay on the “last dollar” you earn; but as a percentage of your income, your tax rate is generally less than that. First, here are the tax rates and the income ranges where they apply:
To take an example, suppose your taxable income (after deductions and exemptions) was exactly $100,000 in 2008 and your status was Married filing separately; then your tax would be calculated like this:
| ( |
$ 8,025 minus |
0 ) |
x .10 : |
$ 802.50 |
| ( |
32,550 minus |
8,025 ) |
x .15 : |
3,678.75 |
| ( |
65,725 minus |
32,550 ) |
x .25 : |
8,293.75 |
| ( |
100,000 minus |
65,725 ) |
x .28 : |
9,597.00 |
|
Total: |
$ 22,372.00 |
This puts you in the 28% tax bracket, since that’s the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 22.37%.
This next calculator lets you try it out with your own numbers: