Tax Brackets & Rates for Individuals

When filing a tax return, you have a choice of five filing statuses. These are Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Tax tables for 2016 apply the same tax brackets to Married Filing Jointly and Surviving Spouses.

 

The rate of tax you will be required to pay, as well as other tax benefits such as the standard deduction, depends on the filing status that you choose. Tax rates are the same for all filing statuses. However, the tax brackets to which they apply varies. There are seven (7) tax rates: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. There are also seven (7) tax brackets for each filing status, of course, so that the seven (7) tax rates are applied to seven (7) different tax brackets.

 

Filing Your Tax Return as a Single Unmarried Individual

 

For unmarried individuals, other than surviving spouses and heads of household, the tax brackets and rates appear in Table 3 of Revenue Procedure 2015-53. The seven (7) tax brackets for single individuals are as shown in Table 3. The first six tax brackets have the following thresholds: (i) $9,275; (ii) $37,650; (iii) $91,150; (iv) $190,150; (v) $413,350; and (vi) $415,050. The last bracket is for taxable income equal to or greater than $415,050.

 

Table 3 – Single
Unmarried Individuals (other than Surviving Spouses and Heads of Households)
 
Over But Not Over Tax is Rate Of Amount Over
$0 $9,275 $0.00 + 10.0% $0.00
$9,275 $37,650 $927.50 + 15.0% $9,275.00
$37,650 $91,150 $5,183.75 + 25.0% $37,650.00
$91,150 $190,150 $18,558.75 + 28.0% $91,150.00
$190,150 $413,350 $46,278.75 + 33.0% $190,150.00
$413,350 $415,050 $119,934.75 + 35.0% $413,350.00
$415,050 $120,529.75 + 39.6% $415,050.00

 

If you’re filing as a single unmarried individual, up to the first $9,275 of taxable income (not your actual income) has a 10% rate applied to it so, for example, if your taxable income was $6,000, your tax payable, if you had no credits or other offsets, would be 10% of $6,000 or $600.

 

If, as a single unmarried individual, your taxable income took you into the 15% tax bracket because it exceeded $9,275, say  $30,000, the tax payable would be 10% of $9,275, i.e., $927.50 plus 15% of the amount in the 15-percent tax bracket ($30,000 – $9,275 = $20,725), i.e., $3,108.75, giving you a total tax liability of $927.50 + $3,108.75 = $4,036.25.

 

If, as a single unmarried individual, your taxable income is even higher, say $100,000, you will have entered the 28-percent tax bracket. However, just as in the previous examples, the 28-percent rate is not applied to all of your taxable income, but only to the amount that ‘spills’ over into your highest tax bracket.

 

The first $9,275 of your taxable income would be taxed, as usual, at 10%, giving a tax of $927.50. The $37,650 – $9,275 = $28,375 in the 15-percent tax bracket would result in a tax of $4,256.25. The $91,150 – $37,650 = $53,500 in the 25-percent tax bracket would result in a tax of $13,375. And the $100,000 – $91,150 = $8,850 in the 28-percent bracket would result in a tax of $2,478. Therefore, your total tax liability would be $927.50 + $4,256.25 + $13,375.00 + $2,478.00 = $21,036.75.