Basics of US Income Tax Rate
By Jacob Hemmersbach
What Is It?
The income tax rate is based off of how much money you make a year. If you make more money you will be classified into a higher tax bracket which has a higher income tax rate. If you make not a lot of money then you get placed into a lower tax bracket which will have a lower income tax rate.
How Is It Calculated?
Lets say that you have $100,000. The US income Tax Rate rates are between $0 and $8,350 is placed with 10% tax. Between $8,350 and $33,950 has a tax rate of 15%. Between $33,950 and $82,250 has a rate of 25% tax rate. Between $82,250 and $171,550 has a rate of 28% tax rate. For example purposes that is as far as I will go. The first $8,350 will get a rate of 10%. The next $25,600 gets a 15% rate. The next $48,300 gets a 25% rate. The next $17,750 gets a tax rate of 28%. They each get those rates different because that is where they land in the brackets. Then you take the percent of each group pair and you add them together and that is the total tax on $100,000.