The federal government collects income tax revenue through progressive rates, dependent upon taxpayer income levels. These rates are continuously subject to modification. In particular, changes in Congressional composition, the President, as well as the economy are all driving forces in income tax policy. To simplify the return-filing process, the IRS announces annual rates and income ranges, adjusted for inflation, via Revenue Procedures.
For the most current tax year (2013), the IRS-produced Revenue Procedure 2013-15 provides seven-rate tables with federal income tax rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. These marginal rates are applied to particular ranges of taxable income, depending solely on the taxpayer’s marital status and household composition. Current rate tables for the two most common filing taxpayers, unmarried individuals and married individuals filing jointly, are as follows:
Unmarried Individuals (other than Surviving Spouses and Heads of Households):
If Taxable Income Is: The Tax Is:
Not over $8,925 10% of the taxable income
Over $8,925 but not over $36,250 $892.50 plus 15% of the excess over $8,925
Over $36,250 but not over $87,850 $4,991.25 plus 25% of the excess over $36,250
Over $87,850 but not over $183,250 $17,891.25 plus 28% of the excess over $87,850
Over $183,250 but not over $398,350 $44,603.25 plus 33% of the excess over $183,250
Over $398,350 but not over $400,000 $115,586.25 plus 35% of the excess over $398,350
Over $400,000 $116,163.75 plus 39.6% of the excess over $400,000
Married Individuals Filing Joint Returns (and Surviving Spouses):
If Taxable Income Is: The Tax Is:
Not over $17,850 10% of the taxable income
Over $17,850 but not over $72,500 $1,785 plus 15% of the excess over $17,850
Over $72,500 but not over $146,400 $9,982.50 plus 25% of the excess over $72,500
Over $146,400 but not over $223,050 $28,457.50 plus 28% of the excess over $146,400
Over $223,050 but not over $398,350 $49,919.50 plus 33% of the excess over $223,050
Over $398,350 but not over $450,000 $107,768.50 plus 35% of the excess over $398,350
Over $450,000 $125,846 plus 39.6% of the excess over $450,000
Taxpayers filing as neither an unmarried individual or jointly-filing married individual can obtain their 2013 tax rate tables from Revenue Procedure 2013-15. This includes any taxpayer filing as a head of household, a married individual filing separately, or on behalf of an estate or trust.
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