What Are The Tax Brackets For 2016?

If you’re looking for an answer to the question ‘what are the tax brackets for 2016?’ then we can help you.  The federal tax brackets change every year based on the rate of inflation and they determine how much tax you’ll actually pay.

Our guide outlines the tax brackets for 2016 and also includes help on how you work out what tax you will actually pay.

2016 tax brackets

The tax brackets in 2016 depend on your filing status as follows:

Tax rate Single Head of Household Married Filing Jointly or Surviving Spouse Married Filing Separately
10% Up to $9,275 Up to $13,250 Up to $18,550 Up to $9,275
15% $9,276 to $37,650 $13,251 to $50,400 $18,551 to $75,300 $9,276 to $37,650
25% $37,651 to $91,150 $50,401 to $130,150 $75,301 to $151,900 $37,651 to $75,300
28% $85,651 to $178,650 $122,301 to $198,050 $142,701 to $217,450 $71,351 to $108,725
33% $190,151 to $413,350 $210,801 to $413,350 $231,451 to $413,350 $115,726 to $206,675


35% $413,351 to $415,050 $413,351 to $441,000 $413,351 to $466,950 $206,676 to $233,475
39.6% $415,051 or more $441,000 or more $466,951 or more $233,476 or more


What is your ‘marginal’ tax rate?

The US tax system is a ‘progressive’ system.  This means that the amount of income taxes you pay increases in steps as your income rises.

For example, if you have a taxable income of $100,000 in 2016 you won’t simply owe 28 per cent of all your income ($28,000) to the IRS.

In 2016, speelautomaten online if you are a single taxpayer your tax would have been worked out as follows:

So, your total tax bill would be $21,460.50 as your tax is charged at different rates.  This also means that your ‘real’ or ‘effective’ tax rate on your $100,000 earnings is 21.5 per cent even though your marginal tax rate, which is the rate applied to the last dollar of income that you earned, is 28 per cent.  This is because you don’t pay 28 per cent on every penny of your income.

It is also important to keep in mind that this example uses your gross earnings (in this case $100,000).  In reality you would be able to reduce this final taxable amount by using the tax deductions, adjustments and exemptions that are available.  Using these deductions has the effect of reducing your income to a lower taxable level. viagra

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