2016 Federal Marginal Tax Rates For Individuals


Marginal Tax Rates are very important for tax planning.  By knowing how much you’ll be taxed on your ‘next dollar’, you can figure out if you need to have additional withholding, make an estimated tax payment or if you have enough currently being withheld to cover your earnings.

For Individuals, there are 4 possible categories:

  1. Single Individuals (non-married individuals without dependents)
  2. Head of Household (non-married individuals with dependents)
  3. Married Filing Jointly (married couple filing together, with or without dependents) – this is also used for a Surviving Spouse
  4. Married Filing Separately (married couple, filing apart, with or without dependents)

Each category has several tax rates, depending upon income.  Check below for your category, look for your income range, and you’ll find the percentage of money that could go to Federal Tax.

Please remember your are not taxed on all of your income – you are at least allowed to deduct a Personal Exemption of $4,050 for each person on your tax return in 2016.  In addition, you’re allowed to deduct the greater of your Itemized Deductions or Standard Deduction ($6,300 if you are Single, $9,300 for Head of Household, $12,600 for Married Filing Jointly or Surviving Spouse, and $6,300 for Married Filing Separately).

 

2016 Tax Rate Schedule – Single Individuals

Taxable Income                                Tax Rate

$0 – $9,275                                           10%

$9,276 – $37,650                                15%

$37,651 – $91,150                              25%

$91,151 – $190,150                           28%

$190,151 – $413,350                         33%

$413,351 – $415,050                         35%

$415,051 – unlimited                      39.6%

 

2016 Tax Rate Schedule – Head of Households

       Taxable Income                         Tax Rate

$0 – $13,250                                        10%

$13,251 – $50,400                              15%

$50,401 – $130,150                           25%

$130,151 – $210,800                        28%

$210,801 – $413,350                        33%

$413,351- $441,000                         35%

$441,001 – unlimited                      39.6%

 

2016 Tax Rate Schedule – MFJ or Surviving Spouse

Taxable Income                            Tax Rate

$0 – $18,550                                       10%

$18,551 – $75,300                              15%

$75,301 – $151,900                           25%

$151,901 – $231,450                         28%

$231,451 – $413,350                         33%

$413,351 – $466,950                        35%

$466,951 – unlimited                      39.6%

 

2016 Tax Rate Schedule – Married Individuals filing Separately

Taxable Income                                Tax Rate

$0 – $9,275                                           10%

$9,275 – $37,650                                15%

$37,651 – $75,950                              25%

$75,951 – $115,725                           28%

$115,726 – $206,675                         33%

$206,676 – $233,475                      35%

$233,476 – unlimited                      39.6%