Certain types of income might be taxed at different rates. There are special capital gains tax rates that apply for dividends, long-term investments, collectibles, and certain types of real estate.
Note: These tax rate schedules are provided for tax planning purposes. To compute your actual income tax, please see the 2013 Instructions for Form 1040 and the 2013 Tax Tables.
Each tax rate applies to a range of income, which is called a tax bracket. Each tax rate applies to a specific range of taxable income. Taxable income is total income after various deductions have been subtracted.
Single Filing Status
[Tax Rate Schedule X, Internal Revenue Code section 1(c)]- 10% on taxable income from $0 to $8,925, plus
- 15% on taxable income over $8,925 to $36,250, plus
- 25% on taxable income over $36,250 to $87,850, plus
- 28% on taxable income over $87,850 to $183,250, plus
- 33% on taxable income over $183,250 to $398,350, plus
- 35% on taxable income over $398,350 to $400,000, plus
- 39.6% on taxable income over $400,000.
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]- 10% on taxable income from $0 to $17,850, plus
- 15% on taxable income over $17,850 to $72,500, plus
- 25% on taxable income over $72,500 to $146,400, plus
- 28% on taxable income over $146,400 to $223,050, plus
- 33% on taxable income over $223,050 to $398,350, plus
- 35% on taxable income over $398,350 to $450,000, plus
- 39.6% on taxable income over $450,000.
Married Filing Separately Filing Status
[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]- 10% on taxable income from $0 to $8,925, plus
- 15% on taxable income over $8,925 to $36,250, plus
- 25% on taxable income over $36,250 to $73,200, plus
- 28% on taxable income over $73,200 to $111,525, plus
- 33% on taxable income over $111,525 to $199,175, plus
- 35% on taxable income over $199,175 to $225,000, plus
- 39.6% on taxable income over $225,000.
Head of Household Filing Status
[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]- 10% on taxable income from $0 to $12,750, plus
- 15% on taxable income over $12,750 to $48,600, plus
- 25% on taxable income over $48,600 to $125,450, plus
- 28% on taxable income over $125,450 to $203,150, plus
- 33% on taxable income over $203,150 to $398,350, plus
- 35% on taxable income over $398,350 to $425,000, plus
- 39.6% on taxable income over $425,000.
How Marginal Tax Rates are Used
Individuals can use the tax rate schedules in a number of ways to help plan their finances. You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket of 28%.Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. A taxpayer in the 28% tax bracket, for example, will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.
Be aware that marginal tax rates interact with other tax rates, including the alternative minimum tax, Social Security tax, and Medicare tax rates. In particular, the alternative minimum tax can push income into a higher tax rate or eliminate the tax savings of deductions.
Source: the official tax brackets for 2013 were published by the Internal Revenue Service in Revenue Procedure 2013-15 (pdf).
