# 2009 Tax Brackets

For 2009, the six income tax rates for individual taxpayers are 10%, 15%, 25%, 28%, 33%, and 35%.
In addition to cutting tax rates, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 created the 10% tax bracket for lower incomes.
In 2009, for single taxpayers and married persons filing a separate return, the first \$8,350 of income is taxed at this rate. For married persons filing a joint return, the first \$16,700 is taxed at 10%. For persons filing as head of household, the first \$11,950 is taxed at the 10% rate.
It helps to think of your tax rate in terms of a marginal tax rate. This is the tax rate on the last dollar of income that you earned. As your taxable income increases, you are taxed at a higher tax rate as a result of being bumped into a higher income tax bracket.
The following tables show the cutoff points in taxable income for 2009 that mark each income tax bracket:
Table A: Single tax return:
 If taxable income is: Amount of taxthat you owe is: More than: However, not over: This amount (or %) plus % of: Amount over: \$0 \$8,350 10% -- \$8,350 \$33,950 \$835 + 15% \$8,350 \$33,950 \$82,250 \$4,675 + 25% \$33,950 \$82,250 \$171,550 \$16,750 + 28% \$82,250 \$171,550 \$372,950 \$41,754 + 33% \$171,550 \$372,950 -- \$108,216 + 35% \$372,950

Table B: Married Filing Jointly (MFJ) or Qualifying Widow(er):
 If taxable income is: Amount of taxthat you owe is: More than: However, not over: This amount (or %) plus % of: Amount over: \$0 \$16,700 10% -- \$16,700 \$67,900 \$1,670 + 15% \$16,700 \$67,900 \$137,050 \$9,350 + 25% \$67,900 \$137,050 \$208,850 \$26,638 + 28% \$137,050 \$208,850 \$372,950 \$46,742 + 33% \$208,850 \$372,950 -- \$100,895 + 35% \$372,950

Table C: Head of Household tax return:
 If taxable income is: Amount of taxthat you owe is: More than: However, not over: This amount (or %) plus % of: Amount over: \$0 \$11,950 10% -- \$11,950 \$45,500 \$1,195 + 15% \$11,950 \$45,500 \$117,450 \$6,228 + 25% \$45,500 \$117,450 \$190,200 \$24,215 + 28% \$117,450 \$190,200 \$372,950 \$44,585 + 33% \$190,200 \$372,950 -- \$104,893 + 35% \$372,950

Table D: Married Filing Separate (MFS) return:
 If taxable income is: Amount of taxthat you owe is: More than: However, not over: This amount (or %) plus % of: Amount over: \$0 \$8,350 10% -- \$8,350 \$33,950 \$835 + 15% \$8,350 \$33,950 \$68,525 \$4,675 + 25% \$33,950 \$68,525 \$104,425 \$13,319 + 28% \$68,525 \$104,425 \$186,475 \$23,371 + 33% \$104,425 \$186,475 -- \$50,447 + 35% \$186,475

For example, say you file a single return and have taxable income of \$40,000 in 2009. Using Table A, above, your tax liability would be \$4,675 plus 25% of income above \$33,950, or \$6,050 in your case. That works out to be \$1,513 for a total federal income tax liability of \$6,188.
To prevent you from being bumped into the next-higher bracket as a result of a cost-of-living wage increase, the IRS adjusts upward the amount of income that can be earned for each tax bracket every year. This phenomenon of being bumped into the next-higher tax bracket is sometimes called "bracket creep."
2008-07-21 17:03:59