The Income Tax Rates for 2011 haven’t changed much from 2010. This is because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law on December 17, 2010 (Click here if you would like to read the full bill). This Act included a last minute extension of the Bush-era tax cuts, which in turn confounded most projections regarding the federal tax rates for 2011.
If you recall, this is the reason for the income tax filing delay, but not the reason for the extension of the tax deadline.
First I will give you the income tax rates for 2011 in the form of a basic chart with the dollar range and the marginal tax rate. Then I will list the income tax rates using the form of the IRS rate table showing exactly how much you will pay in taxes.
Single: Income Tax Rates
Taxable Income is Taxable Income is
Over But Not Over Tax Rate
$0 $8,500 10%
$8,500 $34,500 15%
$34,500 $83,600 25%
$83,600 $174,400 28%
$174,400 $379,150 33%
$379,150 Unlimited 35%
Below is the actual dollar amount that “single” taxpayers will owe:
If Taxable Income Is Over But Not Over The Tax Is:
$0 $8,500 10% of the taxable income
$8,500 $34,500 $850 plus 15% of the excess over $8,500
$34,500 $83,600 $4,750 plus 25% of the excess over $34,500
$83,600 $174,400 $17,025 plus 28% of the excess over $83,600
$174,400 $379,150 $42,449 plus 33% of the excess over $174,400
$379,150 Unlimited $110,016.50 plus 35% of the excess over $379,150
Married Filing Jointly: Income Tax Rates
Taxable Income is Taxable Income is
Over But Not Over Tax Rate
$0 $17,000 10%
$17,000 $69,000 15%
$69,000 $139,350 25%
$139,350 $212,300 28%
$212,300 $379,150 33%
$379,150 Unlimited 35%
Below is the actual dollar amount that “married filing jointly” taxpayers will owe:
If Taxable Income Is Over But Not Over The Tax Is:
$0 $17,000 10% of the taxable income
$17,000 $69,000 $1,700 plus 15% of the excess over $17,000
$69,000 $139,350 $9,500 plus 25% of the excess over $69,000
$139,350 $212,300 $27,087.50 plus 28% of the excess over $139,350
$212,300 $379,150 $47,513.50 plus 33% of the excess over $212,300
$379,150 Unlimited $102,574 plus 35% of the excess over $379,150
Head of Household: Federal Tax Rates
Taxable Income is Taxable Income is
Over But Not Over Tax Rate
$0 $12,150 10%
$12,150 $46,250 15%
$46,250 $119,400 25%
$119,400 $193,350 28%
$193,350 $379,150 33%
$379,150 Unlimited 35%
Below is the actual dollar amount that “head of household” taxpayers will owe:
If Taxable Income Is Over But Not Over The Tax Is:
$0 $17,000 10% of the taxable income
$17,000 $69,000 $1,215 plus 15% of the excess over $12,150
$69,000 $139,350 $6,330 plus 25% of the excess over $46,250
$139,350 $212,300 $24,617.50 plus 28% of the excess over $119,400
$212,300 $379,150 $45,323.50 plus 33% of the excess over $193,350
$379,150 Unlimited $106,637.50 plus 35% of the excess over $379,150
Married Filing Separately: Federal Tax Rates
Taxable Income is Taxable Income is
Over But Not Over Tax Rate
$0 $8,500 10%
$8,500 $34,500 15%
$34,500 $69,675 25%
$69,675 $106,150 28%
$106,150 $189,575 33%
$189,575 Unlimited 35%
Below is the actual dollar amount that “married filing separately” taxpayers will owe:
If Taxable Income Is Over But Not Over The Tax Is:
$0 $8,500 10% of the taxable income
$8,500 $34,500 $850 plus 15% of the excess over $8,500
$34,500 $83,600 $4,750 plus 25% of the excess over $34,500
$83,600 $174,400 $13,543.75 plus 28% of the excess over $69,675
$174,400 $379,150 $23,756.75 plus 33% of the excess over $106,150
$379,150 Unlimited $51,287 plus 35% of the excess over $189,575
A Quick Note About Marginal Tax Rates:
As you can see from the tables above, a marginal tax system works very differently than a flat tax system. If the United States used federal tax rates based on a flat tax, then once you crossed over into a new tax bracket, all of your income would be taxed at that higher rate. For example, once a single taxpayer earned over $34,500 in taxable income, then they would pay 25% on all of their income.
However, due to our marginal tax system, this single taxpayer only has to pay 25% on taxable income over $34,500. You must keep this in mind when you evaluate whether a raise, bonus, or investment is as good or bad as it seems (especially when compared to a flat tax system).
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