Tax rate schedules are provided for tax planning purposes.
Each tax rate applies to a range of income, which is called a tax bracket. Each tax rate applies to a specific range of taxable income, which is income after various deductions have been subtracted.
[Tax Rate Schedule X, Internal Revenue Code section 1(c)]
- 10% on taxable income from $0 to $9,325, plus
- 15% on taxable income over $9,325 to $37,950, plus
- 25% on taxable income over $37,950 to $91,900, plus
- 28% on taxable income over $91,900 to $191,650, plus
- 33% on taxable income over $191,650 to $416,700, plus
- 35% on taxable income over $416,700 to $418,400, plus
- 39.6% on taxable income over $418,400
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
- 10% on taxable income from $0 to $18,650, plus
- 15% on taxable income over $18,650 to $75,900, plus
- 25% on taxable income over $75,900 to $153,100, plus
- 28% on taxable income over $153,100 to $233,350, plus
- 33% on taxable income over $233,350 to $416,700, plus
- 35% on taxable income over $416,700 to $470,700, plus
- 39.6% on taxable income over $470,700.
Married Filing Separately Filing Status
[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]
- 10% on taxable income from $0 to $9,325, plus
- 15% on taxable income over $9,325 to $37,950, plus
- 25% on taxable income over $37,950 to $76,550, plus
- 28% on taxable income over $76,550 to $116,675, plus
- 33% on taxable income over $116,675 to $208,350, plus
- 35% on taxable income over $208,350 to $235,350, plus
- 39.6% on taxable income over $235,350
Head of Household Filing Status
[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]
- 10% on taxable income from $0 to $13,350, plus
- 15% on taxable income over $13,350 to $50,800, plus
- 25% on taxable income over $50,800 to $131,200, plus
- 28% on taxable income over $131,200 to $212,500, plus
- 33% on taxable income over $212,500 to $416,700, plus
- 35% on taxable income over $416,700 to $444,500, plus
- 39.6% on taxable income over $444,500.
Short-term gains taxed at ordinary income tax rates.
Long-term gains and qualified dividends taxed at
- 0% if taxable income falls in the 10% or 15% marginal tax brackets
- 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
- 20% if taxable income falls in the 39.6% marginal tax bracket
- 25% on Depreciation Recapture
- 28% on Collectibles
- 28% on qualified small business stock after exclusion
Other Tax Rates in Effect for 2017
In addition to the federal income taxes on ordinary income, there are other taxes that may apply to personal income:
Social Security Tax at a rate of 12.4% on wages and self-employment income up to the annual Social Security wage base of $127,200.
Medicare Tax at a rate of 2.9% on wages and self-employment income.
Additional Medicare Tax at a rate of 0.9% on wages and self-employment income over the following thresholds:
- Married Filing Jointly: $250,000
- Single or Head of Household or Qualifying Widow(er): $200,000
- Married Filing Separately: $125,000
