Income Tax Rate

Income tax rate in the United States is progressive. Those who come within the range of income tax are taxed at a fixed rate. The higher income group is taxed at a higher rate than the lower income group. With increase in income, the rate of tax also increases.
The reason behind such proportional taxes is the fact that the government believes those who have higher earnings have the ability to save more money. Therefore, they can pay higher amount of money as taxes to the government, which in turn will be used to promote social welfare and other political and economic purposes.

Estimates of the US treasury department reveal that 17.4% of the total federal taxes are paid by 0.1% of the high-income group while 50% of the lower income group pay about3.03% of the total taxes paid.

The following is the table for rates of income tax in America.

Tax Rates Single Householh Heah Marrieh filing tax separately Marrieh filing tax jointly
10% $0 to $7,550 $0 to $10,750 $0 to $7,550 $0 to $15,100
15% $7,551 to $30,650 $10,751 to $41,050 $7,551 to $30,650 $15,101 to $61,300
25% $30,651 to $74,200 $41,051 to $106,000 $30,651 to $61,850 $61,301 to $123,700
28% $74,201 to $154,800 $106,001 to $171,650 $61,851 to $94,225 $123,701 to $188,450
33% $154,801 to $336,550 $171,651 to $336,550 $94,226 to $168,275 $188,451 to $336,550
35% $336,551+ $336,551+ $168,276+ $336,551+

The tax rates have varied over time through various legislative amendments to the tax laws of America. Many people in America think that the tax system in the country is regressive, but this is not true. The opinion that only the wealthy needs to be taxed heavily, should not be encouraged. Income tax rates in America are very well spread out and balanced. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001has fixed the top rate at 35% and the bottom rate at 10%.

Income Tax Rate is thus the most convenient way of preparing and filing income tax. The income tax preparation forms ensure accurate calculations with all deductions in place. The whole procedure of filing Income Tax Rate is time saving, cost effective and risk free.

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Last Updated on : 5th July 2013

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