Federal Income Tax Brackets -- 2011

posted on 06-07-2019

Federal income tax in America is considered a progressive tax. There are income tax-brackets to assure this.

As you can see, those who make the least amount of money owe the lowest marginal tax rate. The more money one makes, the higher the tax rate.

This table can be a little confusing without further explanation. Note that everyone is taxed in steps. A single, non-head of household person earning $100,000 is not taxed 28% on the entire amount. Instead, he is taxed 10% on the first $8,500 earned, 15% for the portion up to $34,500, 25% for the portion up to $83,600, and 28% for the remainder.
This clarification is important to quell some misleading rumors. It has been suggested that if an employee earning $8,500 (take home after taxes: $7,650) is offered a $5 pay raise (enough to boost him into the next tax bracket), it will actually decrease the total amount he takes home (suggested take home after taxes: $7,229.25). But this is incorrect. Only the $5 above $8,500 will be taxed the higher 15%. In this case, his ACTUAL after taxes take home would be $7,654.25.

To learn more about the U.S.'s federal tax system, check out the Progressive Tax definition.