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 $9,875, plus
- 12% on taxable income over $9,876 to $40,125, plus
- 22% on taxable income over $40,126 to $85,525, plus
- 24% on taxable income over $85,526 to $163,300, plus
- 32% on taxable income over $163,301 to $207,350, plus
- 35% on taxable income over $207,351 to $518,400, plus
- 37% on taxable income over $518,400
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 $19,750, plus
- 12% on taxable income over $19,751 to $80,250, plus
- 22% on taxable income over $80,251 to $171,050, plus
- 24% on taxable income over $171,051 to $326,600, plus
- 32% on taxable income over $326,601 to $414,700, plus
- 35% on taxable income over $414,701 to $622,050, plus
- 37% on taxable income over $622,050.
Married Filing Separately Filing Status
[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]
- 10% on taxable income from $0 to $9,875, plus
- 12% on taxable income over $9,876 to $40,125, plus
- 22% on taxable income over $40,126 to $85,525, plus
- 24% on taxable income over $85,526 to $163,300, plus
- 32% on taxable income over $163,301 to $207,350, plus
- 35% on taxable income over $207,351 to $311,025, plus
- 37% on taxable income over $311,025
Head of Household Filing Status
[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]
- 10% on taxable income from $0 to $14,100, plus
- 12% on taxable income over $14,101 to $53,700, plus
- 22% on taxable income over $53,701 to $85,500, plus
- 24% on taxable income over $85,501 to $163,300, plus
- 32% on taxable income over $163,301 to $207,350, plus
- 35% on taxable income over $207,351 to $518,400, plus
- 37% on taxable income over $518,400.
Short-term gains taxed at ordinary income tax rates.
Long-term gains and qualified dividends are now taxed based on income and filing status.
Single
- 0% for taxable income up to $40,000
- 15% for taxable income from $40,001 to $441,450
- 20% for taxable income above $441,451
Married Filing Jointly
- 0% for taxable income up to $80,000
- 15% for taxable income from $80,001 to $496,600
- 20% for taxable income above $496,601
Head of Household
- 0% for taxable income up to $53,600
- 15% for taxable income from $53,601 to $469,050
- 20% for taxable income above $469,051
Married Filing Separately
- 0% for taxable income up to $40,000
- 15% for taxable income from $40,001 to $248,300
- 20% for taxable income above $248301
Rates on the following remain the same
- 25% on Depreciation Recapture
- 28% on Collectibles
- 28% on qualified small business stock after exclusion
Other Tax Rates in Effect for 2020
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 $137,700.
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
