Federal Income Tax Brackets -- 2011

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.

What's even better than earning rewards for spending on your credit cards? Getting paid hundreds of dollars worth in sign-up bonuses in three months or sooner -- just for trying out a new card.Wh...
Tired of dragging credit card debt around with you? Taking 15 minutes to transfer your debt to a credit card with generous balance transfer perks could save you thousands in interest charges and ...
If you're going to spend money anyway, then why not get paid for it?Whether you're looking for credit cards with up to 6% cash back, double flight miles, or even a free hotel stay each year, ther...
by Christian HudspethIn times where interest rates are on the rise, you may start hearing financial advisors and bankers sing the praises of an income strategy called "CD laddering" (short for ce...
Those of us familiar with selling property know real estate agents don't come cheap. With real estate agent commission and fees amounting to as much as 6% of the selling price (that's $18...
Beverly Harzog is a nationally recognized credit card expert, author, and consumer advocate. She blogs about credit cards at BeverlyHarzog.com. Being in credit card debt is the pits. I've bee...
If you haven't already felt the pressure to refinance your mortgage, you're probably really feeling it now. Mortgage rates are still hovering near historic lows. But with the economy improving...
If you or someone you know is thinking about getting a home mortgage, you may want to know about the thousands of dollars in hidden charges that some lenders are quietly adding to mortgage loans ...
by Christian Hudspeth Money market accounts (MMAs) and savings accounts make great places to set aside your emergency fund money and earn some interest income at the same time.Simply put, these s...
by Christian Hudspeth It's true that auto loans and home loans offer attractively-low annual percentage rates (APRs), while credit cards offer borrowing power without the risk of ever seeing the ...
by Christian HudspethWant to keep your emergency fund safe while earning interest yields that are three to five times higher than a typical savings account? Putting your money into an FDIC-insure...
Question: Hi there. I need your advice. I'm only 19 and I really need to start investing. Where can I start? -- Tirelo M., Gaborone, Botswana Answer: You've definitely got the right thinkin...