Blaise Pascal, Penseé 347: “Man is but a reed, the most feeble thing in nature; but he is a thinking reed. The entire universe need not arm itself to crush him. A vapor, a drop of water suffices to kill him. But, if the universe were to crush him, man would still be more noble than that which killed him, because he knows that he dies and the advantage which the universe has over him; the universe knows nothing of this. All our dignity consists, then, in thought. By it we must elevate ourselves, and not by space and time which we cannot fill. Let us endeavor, then, to think well; this is the principle of morality.”

Friday, November 9, 2012

Current Tax Rates / Effective Federal Income Tax



As we get into the "fiscal cliff" Congressional contest, we are going to hear a lot about tax rates. Here are the current rates. Historically, the most relevant data with regard to revenue collection may be effective federal income tax rates, which stay surpisingly even, even though marginal rates have varied a lot.

Single Filing Status

[Tax Rate Schedule X, Internal Revenue Code section 1(c)]
  • 10% on taxable income from $0 to $8,700, plus
  • 15% on taxable income over $8,700 to $35,350, plus
  • 25% on taxable income over $35,350 to $85,650, plus
  • 28% on taxable income over $85,650 to $178,650, plus
  • 33% on taxable income over $178,650 to $388,350, plus
  • 35% on taxable income over $388,350.

Married Filing Jointly or Qualifying Widow(er) Filing Status

[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
  • 10% on taxable income from $0 to $17,400, plus
  • 15% on taxable income over $17,400 to $70,700, plus
  • 25% on taxable income over $70,700 to $142,700, plus
  • 28% on taxable income over $142,700 to $217,450, plus
  • 33% on taxable income over $217,450 to $388,350, plus
  • 35% on taxable income over $388,350.

Married Filing Separately Filing Status

[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]
  • 10% on taxable income from $0 to $8,700, plus
  • 15% on taxable income over $8,700 to $35,350, plus
  • 25% on taxable income over $35,350 to $71,350, plus
  • 28% on taxable income over $71,350 to $108,725, plus
  • 33% on taxable income over $108,725 to $194,175, plus
  • 35% on taxable income over $194,175.

Head of Household Filing Status

[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]
  • 10% on taxable income from $0 to $12,400, plus
  • 15% on taxable income over $12,400 to $47,350, plus
  • 25% on taxable income over $47,350 to $122,300, plus
  • 28% on taxable income over $122,300 to $198,050, plus
  • 33% on taxable income over $198,050 to $388,350, plus
  • 35% on taxable income over $388,350.
For historical effective federal tax rates, see the Tax Policy Center, which shows data back to 1979:


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