![]() Income in this bracket is taxed at a 35% rate.ģ7% Bracket: The highest tax bracket is 37%. For married couples filing jointly, the range is $462,501 to $693,750. For single filers in 2023, it applies to incomes between $231,251 to $578,125. Income within this bracket is taxed at a 32% rate.ģ5% Bracket: The 35% bracket is for even higher incomes. For married couples filing jointly, the range is $364,201 to $462,500. In 2023, for single filers, it applies to incomes between $182,101 to $231,250. ![]() Income within this bracket is taxed at a 24% rate.ģ2% Bracket: The 32% bracket is for relatively high incomes. For married couples filing jointly, the range is $190,751 to $364,200. For single filers in 2023, it applies to incomes between $95,376 to $182,100. Incomes within this bracket are taxed at a 22% rate.Ģ4% Bracket: The 24% bracket encompasses higher incomes. For married couples filing jointly, the range is $89,451 to $190,750. In 2023, for single filers, it applies to incomes between $44,726 to $95,375. Income falling within this bracket is taxed at a 12% rate.Ģ2% Bracket: The 22% bracket includes a broader income range. For married couples filing jointly, the range is $22,001 to $89,450. For single filers, it applies to incomes between $11,001 and $44,725 in 2023. For taxpayers within this bracket, the first portion of their income is taxed at 10%.ġ2% Bracket: The 12% bracket encompasses a higher income range. In 2023, for single filers, this threshold was up to $11,000, and for married couples filing jointly, it was $22,000. This bracket applies to individuals with taxable incomes up to a certain threshold, which is the lowest income range. ![]() Understanding these brackets is crucial for accurately calculating and filing your income tax return.ġ0% Bracket: The lowest tax bracket is 10%. The tax brackets are divided into different income ranges, each with its associated tax rate. In the U.S., the federal income tax system is progressive, which means that as your income increases, you pay a higher percentage of your income in taxes. Keep in mind that tax laws can change, so it's essential to consult the most current tax regulations or a tax professional for up-to-date information. In this explanation, we'll focus on the tax brackets used in the U.S. They determine how much income tax individuals owe based on their earnings. Tax brackets are a fundamental component of the tax system in many countries, including the United States.
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