What Are the Different Income Tax Brackets?

What Are the Different Income Tax Brackets?

What Are the Different Income Tax Brackets?

As of 2015, there are seven tax brackets in the United States based on applicable tax rate percentages: 10, 15, 25, 28, 33, 35, and 39.6, states Bankrate. The rate of tax at the federal level is graduated, meaning those with a higher income have a higher tax rate than those with a lower income.

In the United States, tax is imposed by the federal government as well as most state and local governments. Income tax, which is a tax rate multiplied by taxable income, is applicable to all individuals, corporations, estates and trusts, according to Wikipedia. Taxable income is qualified as the gross adjusted income less any tax deductions. Individuals pay tax at a particular bracket for every dollar within that given tax bracket's range. Tax brackets are generally updated yearly by law. Tax brackets are determined by taxable income and filing status. For example, if an individual is married filing jointly and makes $0 - $17,850, he falls within the 10 percent tax bracket. However, if he files as single and makes more than $8,925, he moves from the 10 percent bracket to the 15 percent bracket. Some states impose income tax at a flat rate as opposed to a graduated rate on all taxable income.