Tax brackets for 2009 income
By law, the thresholds for the marginal federal income tax brackets must change each year to keep pace with inflation. For 2009, those brackets are as follows:
Taxpayers Filing as Single:
10% on taxable income between $0 and $8,350
15% on taxable income between $8,350 and $33,950; plus $835
25% on taxable income between $33,950 and $82,250; plus $4,675
28% on taxable income between $82,250 and $171,550; plus $16,750
33% on taxable income between $171,550 and $372,950; plus $41,754
35% on taxable income over $372,950; plus $108,216
Taxpayers Filing as Married Filing Jointly or Qualifying Widow(er):
10% on taxable income between $0 and $16,700
15% on taxable income between $16,700 and $67,900; plus $1,670
25% on taxable income between $67,900 and $137,050; plus $9,350
28% on taxable income between $137,050 and $208,850; plus $26,637.50
33% on taxable income between $208,850 and $372,950; plus $46,741.50
35% on taxable income over $372,950; plus $100,894.50
Taxpayers Filing as Head of Household:
10% on taxable income between $0 and $11,950
15% on taxable income between $11,950 and $45,500; plus $1,195
25% on taxable income between $45,500 and $117,450; plus $6,227.50
28% on taxable income between $117,450 and $190,200; plus $24,215
33% on taxable income between $190,200 and $372,950; plus $44,585
35% on taxable income over $372,950; plus $104,892.50
Taxpayers Filing as Married Filing Separately:
10% on taxable income between $0 and $8,350
15% on taxable income between $8,350 and $33,950; plus $835
25% on taxable income between $33,950 and $68,525; plus $4,675
28% on taxable income between $68,525 and $104,425; plus $13,318.75
33% on taxable income between $104,425 and $186,475; plus $23,370.75
35% on taxable income over $186,475; plus $50,447.25
One of the things you'll notice about these tax brackets is that our federal income tax system is progressive -- tax rates increase as taxable income increases. This means that each taxpayer reporting the same filing status actually pays tax at the same rate for the same income. So, for example, you and Warren Buffett actually pay the same tax rate on the first $10,000 of taxable income.
Marginal tax brackets are generally announced each fall before the tax year begins (for example, these 2009 tax brackets were announced in the fall of 2008). The brackets for 2010 have already been announced; as expected, the brackets are relatively the same due to low inflation. With that in mind, expect to see similar tables next season.