Tax Rates for the 2012 Tax Year
For 2012 there are six tax rates, and each rate applies to a specific range of income. The income subject to the federal income tax is taxable income, which is total income after various tax deductions have been subtracted.
Federal income tax rates progressively increase as income increases. Instead of just one, flat rate that applies to all income, a person's income will fall into one or more tax rates depending on their income and deductions. For example, a single person with taxable income of $50,000 falls into the 25% tax bracket. (See the single tax rates below.) This "25% tax bracket" means that the person's income from zero to $8,700 is taxed at 10%, and income from $8,700 to $35,350 is taxed at 15%, and finally income from $35,350 to $50,000 is taxed at 25%. The 25% tax rate is this person's marginal tax rate, the tax rate that applies to the last dollars of income earned during the year.
For 2012 there are six tax rates, and each rate applies to a specific range of income. The income subject to the federal income tax is taxable income, which is total income after various tax deductions have been subtracted.
Federal income tax rates progressively increase as income increases. Instead of just one, flat rate that applies to all income, a person's income will fall into one or more tax rates depending on their income and deductions. For example, a single person with taxable income of $50,000 falls into the 25% tax bracket. (See the single tax rates below.) This "25% tax bracket" means that the person's income from zero to $8,700 is taxed at 10%, and income from $8,700 to $35,350 is taxed at 15%, and finally income from $35,350 to $50,000 is taxed at 25%. The 25% tax rate is this person's marginal tax rate, the tax rate that applies to the last dollars of income earned during the year.
2012 Tax Rates
For 2012, there will be six tax rates of:- 10%,
- 15%,
- 25%,
- 28%,
- 33%, and
- 35%.
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