The United States imposes tax on income using progressive rates. That means that a person's tax liabilities gradually increases as income increases. There are currently seven tax brackets, ranging from ten percent to 39.6 percent.

Tax Rates are displayed by year and filing status. First are tax rates for 2015 by filing status. Next comes tax rates for 2014 by filing status.

Single
2015 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
$ 0	$ 9,225	10%	0%
9,225	37,450	15%	0%
37,450	90,750	25%	15%
90,750	189,300	28%	15%
189,300	411,500	33%	15%
411,500	413,200	35%	15%
413,200	--	39.60%	20%

 

Head of Household
2015 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
$ 0	$ 13,150	10%	0%
13,150	50,200	15%	0%
50,200	129,600	25%	15%
129,600	209,850	28%	15%
209,850	411,500	33%	15%
411,500	439,000	35%	15%
439,000	--	39.60%	20%

 

Married Filing Separately
2015 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	9,225	10%	0%
9,225	37,450	15%	0%
37,450	75,600	25%	15%
75,600	115,225	28%	15%
115,225	205,750	33%	15%
205,750	232,425	35%	15%
232,425	--	39.60%	20%

 

Married Filing Jointly / Qualifying Widow or Widower
2015 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	18,450	10%	0%
18,450	74,900	15%	0%
74,900	151,200	25%	15%
151,200	230,450	28%	15%
230,450	411,500	33%	15%
411,500	464,850	35%	15%
464,850	--	39.60%	20%

 

Single
2014 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	9,075	10%	0%
9,075	36,900	15%	0%
36,900	89,350	25%	15%
89,350	186,350	28%	15%
186,350	405,100	33%	15%
405,100	406,750	35%	15%
406,750	--	39.60%	20%

 

Head of Household
2014 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	12,950	10%	0%
12,950	49,400	15%	0%
49,400	127,550	25%	15%
127,550	206,600	28%	15%
206,600	405,100	33%	15%
405,100	432,200	35%	15%
432,200	--	39.60%	20%

 

Married Filing Separately
2014 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	9,075	10%	0%
9,075	36,900	15%	0%
36,900	74,425	25%	15%
74,425	113,425	28%	15%
113,425	202,550	33%	15%
202,550	228,800	35%	15%
228,800	--	39.60%	20%

 

Married Filing Jointly / Qualifying Widow or Widower
2014 Tax Brackets
If your taxable income is over ↓	but not over ↓	Marginal tax rate on ordinary income:	Marginal rate on long-term capital gains:
0	18,150	10%	0%
18,150	73,800	15%	0%
73,800	148,850	25%	15%
148,850	226,850	28%	15%
226,850	405,100	33%	15%
405,100	457,600	35%	15%
457,600	--	39.60%	20%

Terminology

We speak of marginal tax brackets to refer to the tax imposed on the next dollar earned. This is a useful concept for tax planning, as it enables people to analyze the tax impact of additional income or additional deductions. The marginal tax bracket is the highest tax rate imposed on your income.

Ordinary income tax rates apply to most kinds of income. Ordinary rates are distinguished from the capital gains tax rate imposed on long-term gains and qualified dividends.

The Marginal Tax Brackets

There are seven marginal tax brackets:

• 10%
• 15%
• 25%
• 28%
• 33%
• 35%
• 39.6%

These rates are imposed by Congress and found in section 1 of the Internal Revenue Code. The income to which these rates apply adjusts every year. The IRS updates the official tax rates to take into account inflation.

The Hidden Zero Percent Tax Bracket

Everyone is entitled to a standard deduction or itemized deductions and one or more personal exemptions.

Together these constitute a zero percent tax bracket, in the sense that there's no tax imposed the income represented by these deductible expenses.

Progressive Structure of the Tax Rates

The ordinary income tax rates are called progressive because the tax rate that applies progressively increases as a person's income increases. A person with $1 million in income, just to take an example, would have their income taxed at all the tax brackets. Progressive tax rates are distinguished from a flat tax (in which there's one tax rate that applies to all income) or regressive tax rates (in which tax rates decrease as income increases).

Average Tax Rates versus Marginal Tax Rates

Marginal tax rates only tell half the story when it comes to tax planning. Also important is a person's average tax rate. This rate is a person's total federal tax liability divided by his or her total income.

Average tax rates indicate, on average, what the federal government taxes on a person's income. To find your own average tax rate, take your total federal tax liability and divide by your taxable income.