United States (US) Tax Brackets Calculator
Easily determine your tax liability based on your income and filing status using this powerful calculator. Discover which tax bracket you fall into and calculate your federal income taxes accurately. This tool considers the latest tax brackets set by the IRS for individuals and helps you plan your finances accordingly.
What is United States (US) Tax Brackets Calculator
The United States Tax Brackets Calculator is a tool used to determine the tax rate applicable to an individual or household based on their taxable income. The U.S. has a progressive tax system, which means that tax rates increase as income levels rise.
To use the tax brackets calculator, you typically need to provide the following information:
- Filing Status: Whether you are single, married filing jointly, married filing separately, or head of household.
- Taxable Income: The amount of income that is subject to taxation after accounting for deductions, exemptions, and other adjustments.
Based on this information, the calculator will determine the applicable tax rate and the amount of tax owed. It takes into account the current tax brackets set by the Internal Revenue Service (IRS) for the given tax year.
It's important to note that tax rates can change from year to year, so it's recommended to use an up-to-date calculator or consult with a tax professional for accurate and specific tax information based on your circumstances. Additionally, state and local taxes are not included in this calculation, as they vary depending on your location.
When you are looking at the federal tax brackets, you are able to determine which tax rate applies to you for the current tax season which allows you to go on and determine how much tax you will be paying based on your income. Each year, federal tax rates are changed meaning that each year, the tax you pay will most likely differ from the previous year.
Once you have entered the necessary information into our Federal Tax Brackets Calculator you will be provided with a full breakdown of how much tax you will be paying and the amount of tax that falls into each bracket. The more income you receive; the more tax you will be paying.
Please note: This calculator has been updated for the 2022 tax year.
Using Our Federal Tax Brackets Calculator
You can use our Federal Tax Brackets Calculator to determine how much tax you will pay for the current tax year, or to determine how much tax you have paid in previous tax years. To do so, all you need to do is:
- Select a Tax Year
- Select a Filing Status (either single or joint)
- Enter your income amount
- Click "Calculate"
In order for the country to continue functioning on a stable financial level, Congress passed a bill which ensures that the tax rates which were cut during the presidency of George Bush are sustained for the foreseeable future. The terms which this bill ensures are:
- The tax rate for couples (joint filing) earning under $450K will be preserved
- The tax rate for individuals (single filing) earning under $400K will be preserved
However, with that in mind there is a new tax rate which has been enlisted for those earning more than these amounts.
- For couples who are earning over $470.7K, their tax rate will be 39.6%
- For individuals who are earning over $418.4K, their tax rate will be 39.6%
As mentioned above, tax rates are adjusted on an annual basis in order to account for economic inflation and recession. Depending on the status of inflation; and recession, with consideration to the previous tax year, the tax rates will either be adjusted a lot or a little.
In order for the tax rates to be calculated accurately, the CPI-U (Consumer Price Index for Urban Consumers) is used, allowing the government to make the necessary changes using official statistics. Depending on the changes made to tax rates, a change in the IRS tax liability may follow.
As of 2017, there are a total of seven tax brackets. The tax brackets consist of the following marginal rates: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
Note: From 2018, the new bracket rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.