Tax bracket

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Question: What tax bracket am I in?

Answer: Your tax bracket (marginal rate) refers to the highest tax rate at which a portion of your income is taxed. In other words, the percentage that you will pay in taxes on your next dollar of taxable income.

For example, the 2015 tax rates for a single person are as follows:

Tax Rate Taxable Income
10% $ 1-9,225
15% 9,226-37,450
25% 37,451-90,750
28% 90,751-189,300
33% 189,301-411,500
35% 411,501-413,200
39.6% over 413,200

Suppose you are single and you earn $38,400. After subtracting the standard deduction, personal exemption, and your IRA contribution, your taxable income is $22,600. The first $9,225 of your taxable income is taxed at a 10% rate. The remaining $13,375 of your income is taxed at a 15% rate. Because it’s the highest rate that applies to some of your income, you are considered to be in the 15% bracket.

Note: The amount of income included in each bracket depends upon your filing status (i.e., single, married joint, married separate, or head of household).



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