Tax Brackets Rates
When filing your taxes, you must determine which federal tax rate applies to you. Tax brackets lay out the ranges of income that a certain tax rate applies to. There are currently seven federal tax brackets with corresponding tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
U.S. tax brackets are based on a progressive system, meaning that higher level incomes (and wealthier individuals) are taxed at higher rates. However, determining your tax bracket is not as straightforward as finding your income level in the table and multiplying it by the corresponding rate. Only the portion of your income that falls into particular ranges will be charged at that particular rate.
Understandably, income tax brackets can be confusing, especially for individuals filing their taxes for the first time. If you need help figuring out which tax rates apply to you and how to calculate your federal income taxes, the experts at Community Tax can be of assistance. Check out our library of posts regarding tax brackets and rates.