2011 Federal Tax Rate Schedule

CAUTION: DO NOT use these IRS Tax Rates to figure your tax. Rather, see the instructions for line 44 in the 2011 1040 Instruction Booklet.

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


As the Federal Tax Rate Schedule below can be confusing to some who may not have seen this information before, we'll show you an example of how these Federal Personal Income Tax Rates apply to YOU. For this example, we will use the 2011 Federal Tax Rate Schedule X Rates with filing status "SINGLE" - based on the US Income Tax Rates of the United States "Progressive" Tax System.


Pothinus: "Is it possible that Caesar, the conqueror of the world, has time to occupy himself with such a trifle as our taxes?"
Caesar: "My friend, taxes are the chief business of a conqueror of the world." ~George Bernard Shaw, "Caesar and Cleopatra"
(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:
HOW TO USE THE FEDERAL TAX RATE SCHEDULE:

Okay, so let's say your 2011 "TAXABLE" income (after all your deductions and exemptions and credits) is $90,000.

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 $8,500 of that $90,000 and apply the first stage tax indicated, which in this case is 10% or $850.00.

So, so far you have a tax due of $850.00 +

Step 2: Take the amount between $8,500 and $34,500 ($34,500 minus $8,500), which is $26,000 - and apply the second stage tax indicated, which in this case is 15% or $3,900.00.

Now, so far your tax due is $850.00 + $3,900.00 +

Step 3: Take the amount between $34,500 and $83,600 ($83,600 minus $34,500), which is $49,100 - and apply the third stage tax indicated, which in the case is 25% or $12,275.00.

Now, so far your tax due is $850.00 + $3,900.00 + $12,275.00 +

Step 4: Take the amount between $83,600 and $90,000 ($90,000 minus 83,600), which is $6,400 - and apply the fourth stage tax indicated, which in the case is 28% or $1,792.00.

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

$850.00 + $3,900.00 + $12,275.00 + $1,792.00 = $18,817.00


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 20.91% 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.