2010 Tax Rates
Below are the marginal tax brackets for 2010. Tax rates progressively increase as income increases. However, the increasingly higher tax rates apply only to the income in each range, which is called a tax bracket. Also, the tax rates apply only to taxable income. Various adjustments and deductions, including the standard deduction and personal exemptions, all lower a person's taxable income. Taxable income is almost always less than your total income.Capital gains may be taxed at different tax rates. Capital gains tax rates are calculated separately. The rates below are what we call ordinary or marginal tax rates. They are ordinary rates in distinction to the lower rates imposed on capital gains. They are marginal in the sense that these rates apply to the next dollar earned.
Note: These tax rate schedules are provided for tax planning purposes. To compute your actual income tax, please see the office instructions from the IRS for Form 1040, 1040A, or 1040EZ as appropriate.
How to read these tax rate charts. First, find your filing status. Second, find your income level. A single person making $50,000 would be in the 25% tax bracket, for example. On this income, the person would pay tax of $4,681.25 plus 25% on income over $34,000. The $4,681.25 amount covers taxes calculated on income that falls in the 10% and 15% brackets. The 25% amount covers taxes calculated on income only within the 25% bracket.
Single Filing Status
[Tax Rate Schedule X, Internal Revenue Code section 1(c)]- 10% on income between $0 and $8,375
- 15% on the income between $8,375 and $34,000; plus $837.50
- 25% on the income between $34,000 and $82,400; plus $4,681.25
- 28% on the income between $82,400 and $171,850; plus $16,781.25
- 33% on the income between $171,850 and $373,650; plus $41,827.25
- 35% on the income over $373,650; plus $108,421.25
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]- 10% on the income between $0 and $16,750
- 15% on the income between $16,750 and $68,000; plus $1,675
- 25% on the income between $68,000 and $137,300; plus $9,362.50
- 28% on the income between $137,300 and $209,250; plus $26,687.50
- 33% on the income between $209,250 and $373,650; plus $46,833.50
- 35% on the income over $373,650; plus $101,085.50
Married Filing Separately Filing Status
[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]- 10% on the income between $0 and $8,375
- 15% on the income between $8,375 and $34,000; plus $837.50
- 25% on the income between $34,000 and $68,650; plus $4,681.25
- 28% on the income between $68,650 and $104,625; plus $13,343.75
- 33% on the income between $104,625 and $186,825; plus $23,416.75
- 35% on the income over $186,825; plus $50,542.75
Head of Household Filing Status
[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]- 10% on the income between $0 and $11,950
- 15% on the income between $11,950 and $45,550; plus $1,195
- 25% on the income between $45,550 and $117,650; plus $6,235
- 28% on the income between $117,650 and $190,550; plus $24,260
- 33% on the income between $190,550 and $373,650; plus $44,672
- 35% on the income over $373,650; plus $105,095
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. Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. For a taxpayer in the 28% tax bracket will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.Source: Internal Revenue Service, Revenue Procedure 2009-50 (pdf).
