If you are preparing to file taxes this year, you may be wondering about the tax bracket. But not many people are aware of it, so here we wanted to give you a brief introduction to it. Tax brackets were created for a simple reason. Since every person learns differently, it is essential to divide them under brackets. Because if someone is earning $50,000 a year and someone $500,000 a year, they both need to pay taxes differently. You can use Tax calculator for calculating your taxes, but its essentials to know about the basic thing.

The Federal Income Tax Brackets

There are different tax brackets before 2018, but President Donald Trump had signed a new tax plan in 2018. It has changed the tax brackets which is now in effect. As for right now, there are total seven tax brackets. Their rates are 10%,12%,22%, 24%,32%,35% and 37%. Now you think what if you fall into 37%? Does it mean you have to pay around 37% of your income to the IRS? no it does not like it. 37% is a marginal tax rate.

How the Marginal tax rate works, we can easily understand it by an example. Let’s say your income is $9700. This is a hypothetical situation. Now if you see the tax Bracket, you will see up to the income of $9,525, you will fall into 10%. It means $9,525 from your income will be charged with 10%. The remaining $172 Will now fall into 12%. By this simple calculation, now you can understand the tax bracket and its usage. For basics of Federal Service Taxes, check this article.

Tax Brackets

Now, in the USA, there are four kinds of tax brackets for a different type of people. What we mean is this. Here is the table.

  1. For Single filers
  2. Married people filing Jointly
  3. Married but Filing separately
  4. Head of Household

For all fours, you will find there are different Tax Brackets. But what are those brackets? Let’s see. For detailed info check here or keep reading the article

Single Filers Tax Rate

$0 – $9,525 10%

$9,526 – $38,700 12%

$38,701 – $82,500 22%

$82,501 – $157,500 24%

$157,501 – $200,000 32%

$200,001 – $500,000 35%

$500,001+ 37%

2. For Married people filing Jointly

Married Filing Jointly Tax Rate

$0 – $19,050 10%

$19,051 – $77,400 12%

$77,401 – $165,000 22%

$165,001 – $315,000 24%

$315,001 – $400,000 32%

$400,001 – $600,000 35%

$600,001+ 37%

3. Married but Filing Separately

Married Filing Separately Tax Rate

$0 – $9,525 10%

$9,526 – $38,700 12%

$38,701 – $82,500 22%

$82,501 – $157,500 24%

$157,501 – $200,000 32%

$200,001 – $300,000 35%

$300,001+ 37%

Head of Household Tax Rate

$0 – $13,600 10%

$13,601 – $51,800 12%

$51,801 – $82,500 22%

$82,501 – $157,500 24%

$157,501 – $200,000 32%

$200,001 – $500,000 35%

$500,001+ 37%

So, these are tax brackets which you can check out for your Income. If all these things are complicated for you, you can also use Tax Calculator for saving your time. You can also check for eligibility of Tax Refund here.

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