Federal Income Tax Rates for the Year 2013

Income Tax Rates and Brackets for 2013

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The American Taxpayer Relief Act introduced a new top income tax bracket of 39.6 percent in 2013, and two new surtaxes began that year as well: the additional Medicare tax of 0.9 percent on wages and self-employment income, and the net investment income tax of 3.8 percent on the lower of a taxpayer’s modified adjusted gross income or net investment income. Both apply to single filers earning more than $200,000, or $250,000 if you're married and filing jointly.

 

Taxpayers in the highest tax bracket of 39.6 percent potentially face a combined 43.4 percent marginal tax rate on their income—39.6 percent plus 3.8 percent.

Tax Changes in 2013

  • The Social Security tax reverted back to 12.4 percent. It had been at 10.4 percent in 2011 and 2012.
  • The Medicare tax remained at 2.9 percent plus the additional Medicare tax of 0.9 percent on wages and self-employment over the thresholds.
  • A 20 percent top tax rate was added to the capital gains tax rates. There are now three tiers of tax rates on capital gains and qualified dividends: zero, 15 and 20 percent. Capital gains may also be subject to the net investment income tax of 3.8 percent, making the top rate on long-term gains potentially 23.8 percent combined.
  • The alternative minimum tax rates remained at 26 percent and 28 percent.

2013 Federal Tax Rates by Filing Status

The following tax rates apply to ordinary income, which is most types of income.

Special rates apply to long-term capital gains and qualified dividends.

Each tax rate applies to a specific range of taxable income called a tax bracket. Taxable income is your total income after various deductions and credits have been subtracted.

Single Filing Status

Tax Rate Schedule X, Internal Revenue Code section 1(c): 

  • 10 percent on taxable income from $0 to $8,925, plus
  • 15 percent on taxable income over $8,925 to $36,250, plus
  • 25 percent on taxable income over $36,250 to $87,850, plus
  • 28 percent on taxable income over $87,850 to $183,250, plus
  • 33 percent on taxable income over $183,250 to $398,350, plus
  • 35 percent on taxable income over $398,350 to $400,000, plus
  • 39.6 percent on taxable income over $400,000.

Married Filing Jointly or Qualifying Widow(er) Filing Status

  • Tax Rate Schedule Y-1, Internal Revenue Code section 1(a): 
  • 10 percent on taxable income from $0 to $17,850, plus
  • 15 percent on taxable income over $17,850 to $72,500, plus
  • 25 percent on taxable income over $72,500 to $146,400, plus
  • 28 percent on taxable income over $146,400 to $223,050, plus
  • 33 percent on taxable income over $223,050 to $398,350, plus
  • 35 percent on taxable income over $398,350 to $450,000, plus
  • 39.6 percent on taxable income over $450,000.

Married Filing Separately Filing Status

Tax Rate Schedule Y-2, Internal Revenue Code section 1(d):

  • 10 percent on taxable income from $0 to $8,925, plus
  • 15 percent on taxable income over $8,925 to $36,250, plus
  • 25 percent on taxable income over $36,250 to $73,200, plus
  • 28 percent on taxable income over $73,200 to $111,525, plus
  • 33 percent on taxable income over $111,525 to $199,175, plus
  • 35 percent on taxable income over $199,175 to $225,000, plus
  • 39.6 percent on taxable income over $225,000.

Head of Household Filing Status

Tax Rate Schedule Z, Internal Revenue Code section 1(b):

  • 10 percent on taxable income from $0 to $12,750, plus
  • 15 percent on taxable income over $12,750 to $48,600, plus
  • 25 percent on taxable income over $48,600 to $125,450, plus
  • 28 percent on taxable income over $125,450 to $203,150, plus
  • 33 percent on taxable income over $203,150 to $398,350, plus
  • 35 percent on taxable income over $398,350 to $425,000, plus
  • 39.6 percent on taxable income over $425,000.

Marginal tax rates interact with other tax rates, especially the alternative minimum tax which can push income into a higher tax bracket and eliminate the tax savings of certain types of tax deductions.

 

NOTE: Tax laws change periodically, and you should consult with a tax professional for the most up-to-date advice. The information contained in this article is not intended as tax advice and is not a substitute for tax advice.