IRS tax bracket tables provide a percentage rate that may be applied to household income to determine approximate yearly tax liability, as the Tax Foundation reports. Some taxpayers should apply other tax policies while calculating tax liability for high-income earners, businesses and others with special circumstances, as TaxAct claims.Continue Reading
Tax rate tables list a different percentage rate for each income threshold used by the IRS to determine tax totals, as the Tax Foundation claims. Taxpayers calculate their taxes by applying the percentage listed on the table for their income bracket. In the 2014 tax year, for example, single filers with an annual income of $50,000 are in the 25 percent bracket. This bracket applies only to the income a single filer makes above $36,900 because the IRS uses a marginal tax rate system, as TaxAct claims. Any income that falls within a different tax bracket is taxed at that rate, so many taxpayers have multiple brackets.
Added together, these percentages offer an approximation of tax liability, as TaxAct reports. These tax rates apply an increased tax percentage to the households with higher incomes and offer reduced rates for low-income taxpayers. Taxpayers owe a percentage of their income to taxes that is reduced using available deductions and credits. These reductions vary depending on taxpayer circumstances and may be subject to change with each new tax year.Learn more about Taxes