What Are The Tax Brackets For 2012?
If you’re looking for an answer to the question ‘what are the tax brackets for 2012?’ then we can help you. The federal tax brackets change every year based on the rate of inflation and they determine how much tax you’ll actually pay.
Our guide outlines the tax brackets for 2012 and also includes help on how you work out what tax you will actually pay.
2012 tax brackets
The tax brackets in 2012 depend on your filing status as follows:
| Tax rate | Single | Head of Household | Married Filing Jointly or Surviving Spouse | Married Filing Separately |
| 10% | Up to $8,700 | Up to $12,400 | Up to $17,400 | Up to $8,700 |
| 15% | $8,701 to $35,350 | $12,401 to $47,350 | $17,401 to $70,700 | $8,701 to $35,350 |
| 25% | $35,351 to $85,650 | $47,351 to $122,300 | $70,701 to $142,700 | $35,351 to $71,350 |
| 28% | $85,651 to $178,650 | $122,301 to $198,050 | $142,701 to $217,450 | $71,351 to $108,725 |
| 33% | $178,651 to $388,350 | $198,051 to $388,350 | $217,451 to $388,350 | $108,726 to $194,175
|
| 35% | $388,351 or more | $388,351 or more | $388,351 or more | $194,176 or more |
What is your ‘marginal’ tax rate?
The US tax system is a ‘progressive’ system. This means that the amount of income taxes you pay increases in steps as your income rises.
For example, if you have a taxable income of $100,000 in 2012 you won’t simply owe 28 per cent of all your income ($28,000) to the IRS.
In 2012, speelautomaten online if you are a single taxpayer your tax would have been worked out as follows:
- The first $8,700 is taxed at 10 per cent ($870)
- The next $26,650 is taxed at 15 per cent ($3,997.50)
- The next $50,300 is taxed at 25 per cent ($12,575)
- The final $14,350 is taxed at 28 per cent ($4,018)
So, your total tax bill would be $21,460.50 as your tax is charged at different rates. This also means that your ‘real’ or ‘effective’ tax rate on your $100,000 earnings is 21.5 per cent even though your marginal tax rate, which is the rate applied to the last dollar of income that you earned, is 28 per cent. This is because you don’t pay 28 per cent on every penny of your income.
It is also important to keep in mind that this example uses your gross earnings (in this case $100,000). In reality you would be able to reduce this final taxable amount by using the tax deductions, adjustments and exemptions that are available. Using these deductions has the effect of reducing your income to a lower taxable level. viagra
Have these tax brackets changed from last year?
Carlos – thanks for your question. Yes, the tax brackets have changed. The tax rates have not changed from 2011, but the brackets have. The brackets change every year based on the inflation rate and so are different from 2011.