(Look at the tax brackets above to see the breakout.) Actually, you pay only 10% on the first $9,525 you pay 12% on the rest. That puts you in the 12% tax bracket in 2018. Example #1: Let’s say you’re a single filer with $32,000 in taxable income.The beauty of this is that no matter which bracket you’re in, you won’t pay that tax rate on your entire income. The government decides how much tax you owe by dividing your taxable income into chunks - also known as tax brackets - and each chunk gets taxed at the corresponding tax rate.The progressive tax system means that people with higher taxable incomes are subject to higher tax federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates. Being “in” a tax bracket doesn’t mean you pay that federal income tax rate on everything you make.The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates. Single Filers Married, Filing Jointly Married, Filing Separately Head Of Household How Tax Brackets Work Our table shows the tax brackets and federal income tax rates that apply to the 2018 tax year and relate to the tax return you’ll file in 2019. The bracket depends on taxable income and filing status. Keep up to date on the latest changes in the federal income tax brackets with Brilliant Tax.
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