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Tax Rates

The Internal Revenue Service (IRS) can modify more than 40 tax provisions annually as a response to inflation and a preventative measure to avoid bracket creep for taxpayers near the edge of tax thresholds. Since the Tax Cuts and Job Acts of 2017, the IRS uses the Chained Consumer Price Index (C-CPI) to change thresholds, deduction amounts, and credit values accordingly. Set up a consultation with one of Schell & Hogan, LLP’s tax professionals to ensure you’re being taxed at the appropriate level and learn how to maximize your deductions.

U.S. taxpayers fall into one of seven tax brackets, depending on their taxable income: 10%, 12%, 22%, 24%, 32%, 35% or 37%. Since the federal tax system is progressive, higher taxes are incurred as income rises. However, each tax rate applies only to income in a specific tax bracket. Meaning, if a taxpayer earns enough to reach a new bracket with a higher tax rate, their total income is not taxed at that rate, just the income in that bracket. For example, a single filer with $50,000 in taxable income falls into the 22% bracket but does not pay tax of $11,000 (22% of $50,000). The taxpayer is responsible for10% of $9,525 plus 12% of $29,175 plus 22% of $11,300 for a total of $6,939.50.

The table displays 2019 Tax Brackets according to filing status: single, married filing jointly, married filing separately, head of household.

Rate Unmarried Individuals,
Taxable Income Over
Married Individuals
Filing Jointly,
Taxable Income Over
Married Individuals
Filing Separately,
Taxable Income Over
Heads of Households,
Taxable Income Over
10% $0 $0 $0 $0
12% $9,700 $19,400 $9,700 $13,850
22% $39,475 $78,950 $39,475 $52,850
24% $84,200 $168,400 $84,200 $84,200
32% $160,725 $321,450 $160,725 $160,700
35% $204,100 $408,200 $204,100 $204,100
37% $510,300 $612,350 $306,176 $510,300