Tax Brackets

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Tax Brackets

Here is the latest information on federal income tax brackets for the tax year 2006, 2007, and 2008. You'll also hear these tables referred to as tax rate schedules or schedules. The tables can be used to figure out the incremental tax you pay on each additional dollar of income. For example, if you are in the 25% tax bracket, then for each additional dollar of income you had in 2008, you would owe $0.25 in federal income taxes.

Income Tax Rates in 2008

Additional Resources

Other than the fact that each of the dollar amounts that apply to each of these brackets change each year - they go higher - there really aren't any other differences from year-to-year. That means the number of brackets isn't changing in 2007 or 2008 - there are still six tax brackets in each table - the same as there was in 2006. And the percentage that applies to these six brackets stayed the same.

In December 2007, the IRS published the 2008 tax rate schedules. These tax schedules can be used to calculate an estimate of your 2008 tax liability. To calculate your actual tax due, you need to use the appropriate 1040 tax form.

2008 Federal Income Tax Rates / Brackets

Single - Rate Schedule X (2008)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$8,025	$0 + 10%	$0
8,025	32,550	802.50 + 15%	8,025
32,550	78,850	4,481.25 + 25%	32,550
78,850	164,550	16,056.25 + 28%	78,850
164,550	357,700	40,052.25 + 33%	164,550
357,700	-	103,791.75 + 35%	357,700

Married filling jointly or Qualifying widow(er) - Rate Schedule Y-1 (2008)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$16,050	$0 + 10%	$0
16,050	65,100	1,605.00 + 15%	16,050
65,100	131,450	8,962.50 + 25%	65,100
131,450	200,300	25,550.00 + 28%	131,450
200,300	357,700	44,828.00 + 33%	200,300
357,700	-	96,770.00 + 35%	357,700

Married filing separately - Rate Schedule Y-2 (2008)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$8,025	$0 + 10%	$0
8,025	32,550	802.50 + 15%	8,025
32,550	65,725	4,481.25 + 25%	32,550
65,725	100,150	12,775.00 + 28%	65,725
100,150	178,500	22,414.00 + 33%	100,150
178,500	-	48,385.00 + 35%	178,500

Head of Household - Rate Schedule Z (2008)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$11,450	$0 + 10%	$0
11,450	43,650	1,145.00 + 15%	11,450
43,650	112,650	5,975.00 + 25%	43,650
112,650	182,400	23,225.00 + 28%	112,650
182,400	357,700	42,755.00 + 33%	182,400
357,700	-	100,604.00 + 35%	357,700

Income Tax Rates in 2007

On November 25, 2006, the IRS published the 2007 tax rate schedules. These tax schedules can be used to calculate an estimate of your 2007 tax liability.

2007 Federal Income Tax Rates / Brackets

Single - Rate Schedule X (2007)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$7,825	$0 + 10%	$0
7,825	31,850	782.50 + 15%	7,825
31,850	77,100	4,386.25 + 25%	31,850
77,100	160,850	15,698.75 + 28%	77,100
160,850	349,700	39,148.75 + 33%	160,850
349,700	-	101,469.25 + 35%	349,700

Married filling jointly or Qualifying widow(er) - Rate Schedule Y-1 (2007)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$15,650	$0 + 10%	$0
15,650	63,700	1,565.00 + 15%	15,650
63,700	128,500	8,772.50 + 25%	63,700
128,500	195,850	24,972.50 + 28%	128,500
195,850	349,700	43,830.50 + 33%	195,850
349,700	-	94,601.00 + 35%	349,700

Married filing separately - Rate Schedule Y-2 (2007)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$7,825	$0 + 10%	$0
7,825	31,850	782.50 + 15%	7,825
31,850	64,250	4,386.25 + 25%	31,850
64,250	97,925	12,486.25 + 28%	64,250
97,925	174,850	21,915.25 + 33%	97,925
174,850	-	47,300.50 + 35%	174,850

Head of Household - Rate Schedule Z (2007)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$11,200	$0 + 10%	$0
11,200	42,650	1,120.00 + 15%	11,200
42,650	110,100	5,837.50 + 25%	42,650
110,100	178,350	22,700.00 + 28%	110,100
178,350	349,700	41,810.00 + 33%	178,350
349,700	-	98,355.50 + 35%	349,700

Income Tax Rates in 2006

The following are the federal income tax tables for the tax year 2006.

2006 Federal Income Tax Rates / Brackets

Single - Rate Schedule X (2006)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$7,550	$0 + 10%	$0
7,550	30,650	755.00 + 15%	7,550
30,650	74,200	4,220.00 + 25%	30,650
74,200	154,800	15,107.50 + 28%	74,200
154,800	336,550	37,675.50 + 33%	154,800
336,550	-	97,653.00 + 35%	336,550

Married filling jointly or Qualifying widow(er) - Rate Schedule Y-1 (2006)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$15,100	$0 + 10%	$0
15,100	61,300	1,510.00 + 15%	15,100
61,300	123,700	8,440.00 + 25%	61,300
123,700	188,450	24,040.00 + 28%	123,700
188,450	336,550	42,170.00 + 33%	188,450
336,550	-	91,043.00 + 35%	336,550

Married filing separately - Rate Schedule Y-2 (2006)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$7,550	$0 + 10%	$0
7,550	30,650	755.00 + 15%	7,550
30,650	61,850	4,220.00 + 25%	30,650
61,850	94,225	12,020.00 + 28%	61,850
94,225	168,275	21,085.00 + 33%	94,225
168,275	-	45,521.50 + 35%	168,275

Head of Household - Rate Schedule Z (2006)

Taxable income is over -	But not over -	The tax is:	Of the amount over -
$0	$10,750	$0 + 10%	$0
10,750	41,050	1,075.00 + 15%	10,750
41,050	106,000	5,620.00 + 25%	41,050
106,000	171,650	21,857.50 + 28%	106,000
171,650	336,550	40,239.50 + 33%	171,650
336,550	-	94,656.50 + 35%	336,550

Example Calculation of Taxes Owed

Finally, we are going to provide you with an example of how you'd use these tax rate schedules to calculate the federal income taxes owed. Let's say that your tax filing status is Single and your taxable income is $100,000 in 2008.

By looking at the above tables, we see that $100,000 for Single individuals means you use Rate Schedule X. We also know that you fall into the 28% tax bracket because $100,000 is between $78,850 and $164,550. By looking at the above table and using the 28% row, we can calculate your federal income taxes as follows: