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The six different federal income tax brackets are 10%, 15%, 25%, 28%, 33%, and 35%.  Which bracket you fall in depends not just on your income, but on your filing status as well. The four different filing statuses are single, head-of-household, married separate, and married joint.

With that warning, below are the Federal Income Tax Brackets 2011.

Single

Taxable income over But not over Rate
$0.00 $8,700.00 10.00%
$8,700.00 $35,350.00 15.00%
$35,350.00 $85,650.00 25.00%
$85,650.00 $178,650.00 28.00%
$178,650.00 $388,350.00 33.00%
$388,350.00   35.00%

Married, Joint

Taxable income over But not over Rate
$0.00 $17,400.00 10.00%
$17,400.00 $70,700.00 15.00%
$70,700.00 $142,700.00 25.00%
$142,700.00 $217,450.00 28.00%
$217,450.00 $388,350.00 33.00%
$388,350.00   35.00%

Married, Separate

Taxable income over But not over Rate
$0.00 $8,700.00 10.00%
$8,700.00 $35,350.00 15.00%
$35,350.00 $71,350.00 25.00%
$71,350.00 $108,725.00 28.00%
$108,725.00 $194,175.00 33.00%
$194,175.00   35.00%

Head of Household

Taxable income over But not over Rate
$0.00 $12,400.00 10.00%
$12,400.00 $47,350.00 15.00%
$47,350.00 $122,300.00 25.00%
$122,300.00 $198,050.00 28.00%
$198,050.00 $388,350.00 33.00%
$388,350.00   35.00%

But these tax brackets might not end up applying. If the IRS feels a taxpayer has reduced his or her income tax too much based on total income, the IRS is allowed by law to assess an Alternative Minimum Tax, or AMT for short. The AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold (exemption). This exemption is substantially higher than the exemption from regular income tax. Regular taxable income is adjusted for certain items and computed differently for AMT, such as depreciation and medical expenses. No deduction is allowed for state income taxes or miscellaneous itemized deductions in computing AMT income. Taxpayers with incomes above the exemption rate, whose regular Federal Income Tax is below the amount of AMT, must pay the higher AMT amount.

There are also separate AMT tax brackets:

Status

Single Married Joint Married Separate Trust Corporation
Tax Rate: Low 26% 26% 26% 26% 20%
Tax Rate: High 28% 28% 28% 28% 20%
High Rate Starts $175,000 $175,000 $87,500 $87,500 n/a
Exemption 2009 $46,700 $70,950 $35,475 $22,500 $40,000
Exemption 2010 $47,450 $72,450 $36,225 $22,500 $40,000
Exemption phase-out starts at $112,500 $150,000 $75,000 $75,000 $150,000
Zero 2009 exemption at $299,300 $433,800 $216,900 $165,000 $310,000
Zero 2010 exemption at $302,300 $439,800 $219,900 $165,000 $310,000
Capital gain rate 25% 25% 25% 25% 20%

The AMT has most likely outlived its useful life. It was first passed in 1969, but due to years of reform and reconciliation, the tax code has changed dramatically. Tax shelters that were available then are no longer available today, and have not been for awhile.

The AMT is particularly punitive to high income earners in high tax jurisdictions. Not only do they have to pay high local and state taxes, but the IRS does not allow the full deduction simply because they make a lot of money. Therefore, they wind up paying more in federal taxes as well.

 

For more on federal income tax brackets, visit the tax brackets category.

Did you like this article? Check out the Strangest State Tax Write-Offs.

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3 Comments
  1. If i’m in the 15% tax bracket, is that for federal and state taxes or is that just federal?? If its just federal, what would my state rate be here in r.i

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