Federal tax rate schedules for 2015 include a 10 percent rate on taxable income for single filers earning up to $9,225, married joint filers earning up to $18,450 and head of household filers earning up to $13,150, says Kyle Pomerleau for the Tax Foundation. After these limits, tax rates increase.Continue Reading
The schedule for the highest tax bracket includes a 39.6 percent rate for any taxable income that single filers earn over $413,200, married joint filers earn over $464,850 and head of household filers earn over $439,000, according to Pomerleau. In between these lowest and highest tax brackets, taxable income is taxed at different rates in 2015 depending on the type of filer and the amount of income. For example, for taxable income that single filers earn between $9,225 and $37,450, married joint filers earn between $18,450 and $74,900 and head of household filers earn between $13,150 and $50,200 a year, the tax rate is 15 percent. The rate increases in percentage increments as such until it reaches the highest tax bracket every year.
Tax schedules and provisions are adjusted to inflation every year by the Internal Revenue Service to prevent what is known as "bracket creep," reports Pomerleau. Bracket creep is a situation in which taxpayers are forced into higher brackets because of inflation and experience decreased values from credits and exemptions.Learn more about Taxes