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What are the brackets that one can fall into according to the tax rate chart?

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Quick Answer

As of 2015, the Internal Revenue Service maintains seven marginal tax brackets for federal income tax. The marginal rates for these brackets are 10, 15, 25, 28, 33, 35 and 39.6 percent in order of ascending income.

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What are the brackets that one can fall into according to the tax rate chart?
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Full Answer

Federal income tax rates are applied on a marginal basis, meaning that only income above the threshold for a particular bracket is assessed at the higher tax rate. The thresholds between brackets are also dependent on the filing status of the taxpayer in question. For example, a single person with taxable income of $10,000 is subject to a 10 percent tax on $9,225 of that amount and a 15 percent tax on the remainder. However, a married couple filing jointly with the same income is only subject to a 10 percent tax rate on all of their income, as the threshold for the 15 percent tax bracket is $18,450.

While these tax brackets apply to the majority of taxpayers, some persons with very high incomes are subject to the Alternative Minimum Tax, a different tax calculation scheme. In addition, these tax brackets only apply to income from wages and related sources. Income from capital gains and other forms of investments is taxed using a different set of rates.

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