Tax Brackets in the USA
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The percentage of taxes paid increases as income increases. The income limits for each tax bracket are adjusted by the Internal Revenue Service to accommodate inflation. Tax brackets are based on taxable income and filing status. Tax credits such as the earned income tax credit and child tax credits help to reduce your taxable income and may lower your tax bracket. - The 10 percent tax bracket is the lowest tax bracket. As of 2009, people filing as a single or married and filing separately who did not make more than $8,350 owe 10 percent of taxable income in taxes. The income limit for married couples is $16,700.
- Starting at the 15 percent tax bracket, people pay a fixed amount plus a percentage of taxable income. People filing as a single and married couples filing separately in this bracket earn between $8,350 and $33,950, as of 2009. They pay $835 in tax plus 15 percent. Married couples earn between $16,700 and $67,900 and pay $1,670 plus 15 percent.
- People filing as a single in the 25 percent tax bracket make between $33,950 and $82,250 and pay $4,675 plus 25 percent. People who are married and filing separately make between $33,950 and $68,525 and pay $4,675 plus 25 percent. Married couples pay $9,350 plus 25 percent and earn between $67,900 and $137,050.
- The 28 percent tax bracket, as of 2009, is for people filing as a single who earn between $82,250 and $171,550. In addition to 28 percent, they pay $16,750 in tax. Married couples filing separately pay $13,318.75 and earn between $68,525 and $104,425. Married couples filing jointly earn between $137,050 and $208,850 and pay $26,637.50 plus 28 percent.
- People filing as a single in the 33 percent tax bracket make between $171,550 and $372,950 and pay $41,754 plus 33 percent. People who are married and filing separately make between $104,425 and $186,475 and pay $23,370 plus 33 percent. Married couples pay at least $46,741 plus 33 percent and earn between $208,850 and $372,950.
- The 35 percent tax bracket is the highest tax bracket. As of 2009, people filing as a single earn more than $372,950 and pay $108,216 plus 35 percent. Married couples filing separately pay $50,447 plus 35 percent and earn more than $186,475. Married couples filing jointly in this tax bracket earn more than $372,950 and pay $100,894 plus 35 percent.