What Is The Federal Income Tax Rates ?
Whether you agree to it or not, paying income tax is the ultimate truth and no matter how much you try to evade, they cannot be escaped from the long arms of Internal Revenue System. Hence, to a peaceful mind for the rest of life its better to face it boldly and understand the rates of Federal income rates.
The US government has a unique taxation system wherein the taxable income is categorized into different ranges of income. Each range of income has a certain taxation percentage which is assessed depending on the income ranges category.
Depending on the range of earnings, US Federal has specified various tax brackets which are enumerated as below:
Tax Slab in % |
Income Brackets in $ |
Joint Tax filers
(Married couples ) |
Single Tax filers |
10 |
Below 16,750 |
Below 8,375 |
15 |
16,750 – 68,000 |
8,375 – 34,000 |
25 |
68,000 – 137,300 |
34,000 – 82,400 |
28 |
137,300 – 209,250 |
82,400 – 171,850 |
33 |
209,250 – 373,650 |
171,850 – 373,650 |
35 |
Above 373,650 |
Above 373,650 |
Most of the brackets would remain same as compared to the previous year, except may be in case of slight variations.
Considering the type of deductions, no major change is expected in limits of personal exemptions, annual gift tax exclusion amount, and Traditional IRA and Roth IRA contribution limits.
Overall tax bracket ceiling is expected to increase for all tax filing individuals though at a comparatively lesser amount than previous year’s.
Guiding principle for standard deduction will remain same barring few exceptions such as in case of head of household filers wherein there will be minor raise in the slab by $50.
More Articles :
|
What Is The Federal Income Tax Rates ?
