2010 Federal Tax Rates Schedule

CAUTION: If you are back filing 2010 taxes, DO NOT use these Federal Tax Withholding Rates to figure your tax. Rather, see the instructions for line 44 in the 2010 1040 Instruction Booklet.



Click Here For -- 2011 -- Federal Tax Rates
Clicking here will take you to the Federal Tax Rate Schedule for 2011, along with the same examples to understand the information across filing types. To stay with 2010 Tax Rates, DO NOT Click Here; just stay on the page you're on now.


As Federal Income Tax Rates can be confusing, we'll provide you with an example of how the 2010 Federal Tax Rates applied to YOU for the year 2010. For this example, we will use 2010 Federal Tax Rates Schedule X with filing status "SINGLE" - based on 2010 Federal Tax Withholding Rates of the United States "Progressive" Tax System.


The nation should have a tax system that looks like someone designed it on purpose" ~William Simon
(www.QuoteGarden.com)


Hey, psssssst, scroll down this page if you want to see Grover. He doesn't show himself that often anymore ya know...


EXAMPLE:

You can use this example and follow it step by step to double check and ensure that you figured out your own tax rates correctly.

Using US income tax rates, here's how our progressive tax system would play out in this example:

$90,000 TAXABLE INCOME - FILING STATUS SINGLE:

Step 1: Take the first $8,375 of that $90,000 and apply the first stage tax indicated, which in this case is 10% or $837.50.

So, so far you have a tax due of $837.50 +

Step 2: Take the amount between $8,375 and $34,000 ($34,000 minus $8,375), which is $25,625 - and apply the second stage tax indicated, which in this case is 15% or $3,843.75.

Now, so far your tax due is $837.50 + $3,843.75 + Step 3: Take the amount between $34,000 and $82,400 ($82,400 minus $34,000), which is $48,400 - and apply the third stage tax indicated, which in the case is 25% or $12,100.00.

Now, so far your tax due is $837.50 + $3,843.75 + $12,100.00 +

Step 4: Take the amount between $82,400 and $90,000 ($90,000 minus 82,400), which is $7,600 - and apply the fourth stage tax indicated, which in the case is 28% or $2,128.00.

Now, you have the total tax due on your "TAXABLE" income:

$837.50 + $3,843.75 + $12,100.00 + $2,128.00 = $18,909.25.




So the person in the example above is in the 28% tax bracket because the last taxable portion of the income - was taxed at 28%.

However, as a percentage of your total "taxable" income the tax you will pay is 21.01% of that.
OUCH!



Now while on the surface, 20% (or one fifth) of your income being taxed right off the top by Uncle Sam may not seem all that steep - keep in mind that this is BEFORE you pay any City and/or State taxes if they apply in your situation, sales tax, gasoline tax, property tax, beverage tax, meal tax, and Hotel and other taxes. Now if on top of your US Income Tax Rates, you add all of these other taxes up that you're paying, you may start to be feeling that OUCH!


Below we have broken out the Federal Tax Rate Schedule in to four Federal Tax Rate Tables for each IRS Filing Status available to you to use when filing your Federal Tax Return.