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Federal Tax Rates 2017 - 2018

Your tax bracket is determined by your last dollar earned for the tax year. However your federal tax rate is actually a variable of every tax rate up to your last dollar earned as each tax bracket rate portion is added together to give you your overall taxes due.

Calculate Federal Tax Rates from Tax Brackets

As your income increases into each new tax bracket, that portion of income falling within the next tax bracket is taxed at that higher tax bracket rate. It is then added to the previous calculations from the lower tax bracket portions to determine overall federal income tax liability.

In a nutshell: you are applying different federal tax rates to each income portion falling within each tax bracket then adding all these calculations together to determine what your tax liability will be for your federal income taxes.

Federal Tax Rates and Tax Brackets Calculator

Deciphering Marginal Tax Rates

Your income tax bracket tells you what federal tax rate your tax preparation software will prepare your taxes at.

Federal tax rates often vary by tax year and are typically different for each filing status. The rate of taxation is applied only to your taxable income.

You can determine your tax bracket and tax rate for several different years using the federal income tax rates calculator above by selecting tax year and filing status.

Tax rates describes the burden or ratio (generally calculated as a percentage of your income) for which an individual or business is taxed.

Your marginal tax rate is calculated by adding the tax rate tally for each portion of income falling into each tax bracket. Therefore it is an aggregate of all your income from each tax bracket.

There are several different methods that can be used to calculate federal tax rates, the methods below are referenced from the IRS website:

statutory, average, marginal, effective, effective average, and effective marginal.

Use links at the top of this page to estimate your tax return with free federal tax calculators from TurboTax or HR Block to determine taxes owed or refund amount.



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