Although most of us are still working on our 2009 federal income taxes, the tax rates for 2008 taxes are already available from the IRS. Remember that the total amount of income you will be taxed on will be decreased by your personal deduction, the standard deduction or your itemized deductions and a number of other adjustments.
Here are the 2009 Federal Income Tax Rates:
For those under single filing status (Tax Rate Schedule X):
- 10% on income between $0 and $8,350
- 15% on the income between $8,350 and $33,950; plus $835
- 25% on the income between $33,950 and $82,250; plus $4,675
- 28% on the income between $82,250 and $171,550; plus $16,750
- 33% on the income between $171,550 and $372,950; plus $41,754
- 35% on the income over $372,950; plus $108,216
For those that are “Married Filing Jointly” (Tax Rate Schedule Y-1):
- 10% on the income between $0 and $16,700
- 15% on the income between $16,700 and $67,900; plus $1,670
- 25% on the income between $67,900 and $137,050; plus $9,350
- 28% on the income between $137,050 and $208,850; plus $26,637.50
- 33% on the income between $208,850 and $372,950; plus $46,741.50
- 35% on the income over $372,950; plus $100,894.50
For those that are “Married Filing Separately” (Tax Rate Schedule Y-2):
- 10% on the income between $0 and $8,350
- 15% on the income between $8,350 and $33,950; plus $835
- 25% on the income between $33,950 and $68,525; plus $4,675
- 28% on the income between $68,525 and $104,425; plus $13,318.75
- 33% on the income between $104,425 and $186,475; plus $23,370.75
- 35% on the income over $186,475; plus $50,447.25
For those that are considered a “Head of Household” (Tax Rate Schedule Z):
- 10% on the income between $0 and $11,950
- 15% on the income between $11,950 and $45,500; plus $1,195
- 25% on the income between $45,500 and $117,450; plus $6,227.50
- 28% on the income between $117,450 and $190,200; plus $24,215
- 33% on the income between $190,200 and $372,950; plus $44,585
- 35% on the income over $372,950; plus $104,892.50
You can use these Federal Income Tax Brackets to help plan and manage your financial situation throughout the year. By looking at the brackets, you can tell how much you will have to pay in tax on any additional income that you earn. For example, if you were filing as “Single” and earned $50,000 per year, you can see that any additional income that you make up to $82,250 would be taxed at 25%.
You can also use these federal income tax brackets to determine how much you will save by increasing your tax deductions. For example, if you were considering buying a home and estimated that you were going to pay $10,000 per year in mortgage interest and were at a 28% tax-bracket, you would save a total of $2,800 per year in taxes from that additional deduction.