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Tax Rates for the Year 2014

Note: These tax rate schedules are provided for tax planning purposes. To compute your actual income tax, please see the 2013 instructions for Form 1040 and the 2012 Tax Tables.

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.

Single Filing Status

[Tax Rate Schedule X, Internal Revenue Code section 1(c)]

  • 10% on taxable income from $0 to $9,075, plus
  • 15% on taxable income over $9,075 to $36,900, plus
  • 25% on taxable income over $36,900 to $89,350, plus
  • 28% on taxable income over $89,350 to $186,350, plus
  • 33% on taxable income over $186,350 to $405,100, plus
  • 35% on taxable income over $405,100 to $406,750, plus
  • 39.6% on taxable income over $406,750.

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 $18,150, plus
  • 15% on taxable income over $18,150 to $73,800, plus
  • 25% on taxable income over $73,800 to $148,850, plus
  • 28% on taxable income over $148,850 to $226,850, plus
  • 33% on taxable income over $226,850 to $405,100, plus
  • 35% on taxable income over $405,100 to $457,600, plus
  • 39.6% on taxable income over $457,600.

Married Filing Separately Filing Status

[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]

  • 10% on taxable income from $0 to $9,075, plus
  • 15% on taxable income over $9,075 to $36,900, plus
  • 25% on taxable income over $36,900 to $74,425, plus
  • 28% on taxable income over $74,425 to $113,425, plus
  • 33% on taxable income over $113,425 to $202,550, plus
  • 35% on taxable income over $202,550 to $228,800, plus
  • 39.6% on taxable income over $228,800.

Head of Household Filing Status

[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]

  • 10% on taxable income from $0 to $12,950, plus
  • 15% on taxable income over $12,950 to $49,400, plus
  • 25% on taxable income over $49,400 to $127,550, plus
  • 28% on taxable income over $127,550 to $206,600, plus
  • 33% on taxable income over $206,600 to $405,100, plus
  • 35% on taxable income over $405,100 to $432,200, plus
  • 39.6% on taxable income over $432,200.

Other Tax Rates in Effect for 2014

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 $117,000.

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

 

Alternative Minimum Tax (AMT)

For Married Filing Separately:

  • 26% on taxable income (as recalculated under the AMT rules) under $91,250
  • 28% on AMT taxable income over $91,250

For Single, Head of Household, Married Filing Jointly, and Qualifying Widow(er):

  • 26% on AMT taxable income under $182,500
  • 28% on AMT taxable income over $182,500

Net investment income tax at a rate of 3.8% on the lower of net investment income or modified adjusted gross income over the following thresholds:

  • Married Filing Jointly or Qualifying Widow(er): $250,000
  • Single or Head of Household: $200,000
  • Married Filing Separately: $125,000

Capital Gains tax rates vary depending on whether the gains are short-term or long-term.

Short-term gains taxed at ordinary income tax rates.

Capital Gains tax rates vary depending on whether the gains are short-term or long-term.

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

Long-term gains and qualified dividends taxed at