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What Are the Current US Tax Brackets?

Mark Steber Chief Tax Information Officer Published On June 19, 2019

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Income tax rates in the United States are split into seven different groups. Each group is designated by a predetermined amount of taxable income by filing status – these rates are known as tax brackets. Every taxpayer falls into at least one tax bracket.

An individual’s tax bracket is determined by their filing status, as well as their taxable income, so a married couple filing jointly will be in a different tax bracket than they would were they tfile separately. Taxable income means the total of all income from all sources – not just wages – less any adjustments and deductions.

Federal Tax Brackets for 2019

The US tax system is a progressive system of rates based on taxable income. To determine your marginal tax rate – the percent of taxes you actually paid, divide your taxes by your income; the result is your marginal tax rate.  

Each year all tax brackets are slightly broader, based on inflationary adjustments. Generally, if your income remains the same each year, your taxes will go down slightly based on the annual changes.

How Tax Brackets Work

The current income tax brackets are 10, 12, 22, 24, 32, 35, and 37 percent, respectively. Since the IRS uses a progressive tax system, the greater your income, the more taxes you pay. However, this does not mean you pay a fixed tax rate on your entire income. For instance, if your filing status is Single and your taxable income is $29,350, you will pay 10% on the initial $9,525 of your taxable income and 12% on the amount remaining. Prior to tax reform, you would have paid 10% on the initial $9,525, and 15% on the rest of your income. As you can see, you are not usually in one single tax bracket – based on your taxable income, are likely to fall into two or more brackets.

Also, these rates apply to income acquired from ordinary sources. Different rates apply to capital gains income.

State Tax Brackets

Income tax rules and regulations will vary from state to state. Thus, while some states have no income tax, others have a flat rate structure. Still others have tax brackets similar to that of federal taxes, with varying marginal tax rates. For instance, California and Missouri have 10 brackets each, while Hawaii has 12.

The tax brackets change each year based on inflationary adjustments – so be sure you are using the correct year’s tax rates when determining your taxes.

About the Author

Mark Steber is Chief Tax Information Officer, responsible for key initiatives that support overall tax service delivery and quality assurance. Mark also serves as a Jackson Hewitt liaison with the Internal Revenue Service, states, and other government authorities. With over 30 years of tax experience and deep knowledge of the federal and state tax codes, Mark is widely referenced as an expert on consumer income tax issues, especially electronic-tax and data-protection issues.

View Mark's LinkedIn Profile Jackson Hewitt Editorial Policy

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