Federal Income Tax RatesBelow are the marginal tax rates. Tax rates progressively increase as income increases. The tax rates apply only to the income in each tax bracket range. Also, the tax rates apply only to taxable income. Various adjustments and deductions, including the standard deduction and personal exemptions, all lower your taxable income. Taxable income is almost always less than your total income.
Capital gains are may taxed at different tax rates. Capital gains tax rates are calculated separately.
Note: These tax rate schedules are provided for tax planning purposes. To compute your actual income tax, please see the 2008 instructions for Form 1040, 1040A, or 1040EZ as appropriate.
Single Filing Status
(Tax Rate Schedule X)
Married Filing Jointly or Qualifying Widow(er) Filing Status
(Tax Rate Schedule Y-1)
Married Filing Separately Filing Status
(Tax Rate Schedule Y-2)
Head of Household Filing Status
(Tax Rate Schedule Z)
How Marginal Tax Rates are Used
Individuals can use the tax rate schedules in a number of ways to help plan their finances.
You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket.
Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. For a taxpayer in the 28% tax bracket will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charitable donations.
Source: Internal Revenue Service, Revenue Procedure 2007-66.