# Federal Income Tax Rates for Tax Year 2014

## Personal Tax Rates and Brackets for 2014

The U.S. federal government taxes personal income using a graduated or progressive scale. Tax rates began at 10% in 2014 and gradually increased to 15%, then 25%, 28%, 33%, 35%, and finally a top rate of 39.6%.

Each tax rate applies to a specific range of income called a tax bracket. Where each bracket begins and ends depends on a taxpayer’s filing status. Tax rates can also vary depending on the type of income.

Ordinary tax rates apply to most sources of income.

### From       Up To       Rate       Tax         Total Tax

 \$0 \$9,075 × 0.10 \$907 \$907 9,076 36,900 × 0.15 4,174 5,081 36,901 89,350 × 0.25 13,112 18,193 89,351 186,350 × 0.28 27,160 45,353 186,351 405,100 × 0.33 72,187 117,540 405,101 406,750 × 0.35 577 118,117 406,751 -- × 0.396

Tax and total tax in the final row would depend upon how much income falls into the 39.6% bracket—how much did a filer earns over \$406,750? These numbers have been rounded off to the dollar for simplicity's sake.

### Do the Math

Start by figuring out the individual's taxable ordinary income, then use the first two columns to determine the range into which this income falls. Then multiply the applicable portion of income against the tax rate for that bracket. The total for each level of income is then added to the last to calculate the overall tax.

Let's say that you're single and you earned \$80,000 in 2014.

According to the 2014 tax brackets:

• The first \$9,075 would be taxed at the rate of 10%, for a total of \$907.
• The next \$27,825 of income, that which falls between \$9,076 and \$36,900, is multiplied by 15%, arriving at a tax of \$4,174.
• Finally, the balance of your income over \$36,900, and up to your \$80,000 income, falls into the 25% bracket. Tax on this portion of your income—\$43,099—works out to \$10,775.

Add each segment together to come up with a total tax liability of \$15,856.

Here's how it breaks down for other filing statuses.

### From       Up To       Rate       Tax         Total Tax

 \$0 \$12,950 × 0.10 \$1,295 \$1,295 12,951 49,400 × 0.15 5,467 6,762.50 49,401 127,550 × 0.25 9,112 5,587.50 127,551 206,600 × 0.28 22,134 9,414.00 206,601 405,100 × 0.33 65,505 19,744.00 405,101 432,200 × 0.35 9,485 27,846.00 432,201 -- × 0.396

### From       Up To       Rate       Tax         Total Tax

 \$0 \$9,075 × 0.10 \$907 \$907 9,076 36,900 × 0.15 4,174 5,081 36,901 74,425 × 0.25 9,381 14,462 74,426 113,425 × 0.28 10,920 25,382 113,426 202,550 × 0.33 29,411 54,793 202,551 228,800 × 0.35 9,187 64,160 228,801 -- × 0.396

Note that the 39.6% tax bracket begins for this filing status at incomes of almost \$178,000 less than that of single filers.

### From       Up To       Rate       Tax         Total Tax

 \$0 \$18,150 × 0.10 \$1,815 \$1,815 18,151 73,800 × 0.15 8,347 10,162 73,801 148,850 × 0.25 18,762 28,924 148,851 226,850 × 0.28 21,840 50,764 226,851 405,100 × 0.33 58,822 109,586 405,101 457,600 × 0.35 18,735 128,321 457,601 -- × 0.396

### Other Tax Rates in Effect for 2014

In addition to federal income taxes on ordinary income, the following taxes can also apply:

• Social Security tax at a rate of 12.4% on wages and self-employment income up to the annual Social Security wage base of \$117,000 in 2014. Employees pay 6.2% and employers must match this. Self-employed taxpayers pay the full 12.4%.
• Medicare tax at a rate of 2.9% on wages and self-employment income. This tax is also divided between employers and employees. Self-employed individuals must pay the entire 2.9%.
• Additional Medicare tax at a rate of 0.9% on wages and self-employment income over \$250,000 if you’re married and filing jointly, \$125,000 if you’re married and filing separately, or \$200,000 if you file as single, head of household, or qualifying widow(er), as of 2014.
• The alternative minimum tax (AMT) is 26% of taxable income under \$91,250 as recalculated under the AMT rules, or 28% on taxable income over \$91,250 if you’re married and filing separately. All other taxpayers pay 26% on AMT taxable income under \$182,500 or 28% of AMT taxable income over \$182,500. Again, these are 2014 rates and thresholds.
• Net investment income is taxed at a rate a rate of 3.8% on the lower of net investment income or modified adjusted gross income over the following thresholds in 2014: \$250,000 for qualifying widow(ers) and those filing joint married returns, \$200,000 for single filers and those filing as head of household, and \$125,000 for married individuals who file separate returns.
• Capital gains tax rates vary depending on whether the gains are short-term or long-term. Short-term gains are taxed at ordinary income tax rates. Long-term gains and qualified dividends are taxed at the following rates: zero percent if taxable ordinary income falls in the 10% or 15% tax brackets, 15% if taxable income falls in the 25, 28, 33 or 35% tax brackets, 20% if taxable income falls in the 39.6% marginal tax bracket, 25% on depreciation recapture, 28% on collectibles, and 28% of qualified small business stock after exclusion.

### How to Use Your Marginal Tax Rate

Individuals can use these tax rate schedules in a number of ways to help plan their finances. For example, you can figure out how much tax you'll pay on any extra income you earn if you take on a second job. If the extra income pushes you into the 25% tax bracket, it will be taxed at that rate until it reaches the next tax bracket range of 28%.

You can also use these tax rates to figure out how much you'll save by increasing your deductions. A taxpayer in the 28% tax bracket will save 28 cents in federal tax for every dollar spent on a tax-deductible expenses such as mortgage interest or charity.

Remember that different intervals of income are taxed at different rates and the income intervals at which the rates apply are based on your filing status. These marginal tax rates interact with other tax rates, particularly the alternative minimum tax which can push income to a higher tax rate or eliminate the tax savings of certain types of deductions.