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Income-tax rates are unchanged for 2008, but, as happens every year, the Internal Revenue Service has adjusted tax brackets to account for inflation.
Expanding the brackets means that a touch more of your income will be taxed at lower rates than might have been the case last year. That could mean savings for you.
The IRS is required by law to adjust the dollar amounts for a variety of tax provisions each year to keep pace with inflation.
The adjustments of tax brackets, standard deductions, personal exemptions, earned-income credits and other things affect about three dozen areas of tax rules.
The IRS publishes the following year's tax rates in the fall.
So 2009 tax brackets, as well as amounts for standard deductions, personal exemptions and other tax areas, are already published.
You can get more information on 2009 tax law changes here.
| These tables can help you estimate your tax bill | ||
|---|---|---|
| For single taxpayers | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $8,025 | 10% of the amount over $0 |
| $8,025 | $32,550 | $802.50 plus 15% of the amount over $8,025 |
| $32,550 | $78,850 | $4,481.25 plus 25% of the amount over $32,550 |
| $78,850 | $164,550 | $16,056.25 plus 28% of the amount over $78,850 |
| $164,550 | $357,700 | $40,052.25 plus 33% of the amount over $164,550 |
| $357,700 | no limit | $103,791.75 plus 35% of the amount over $357,700 |
| For married couples filing jointly* | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $16,050 | 10% of the amount over $0 |
| $16,050 | $65,100 | $1,605 plus 15% of the amount over $16,050 |
| $65,100 | $131,450 | $8,962.50 plus 25% of the amount over $65,100 |
| $131,450 | $200,300 | $25,550 plus 28% of the amount over $131,450 |
| $200,300 | $357,700 | $44,828 plus 33% of the amount over $200,300 |
| $357,700 | no limit | $96,770 plus 35% of the amount over $357,700 |
| * Or qualifying widow(er) | ||
| For married couples filing separately | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $8,025 | 10% of the amount over $0 |
| $8,025 | $32,550 | $802.50 plus 15% of the amount over $8,025 |
| $32,550 | $65,725 | $4,481.25 plus 25% of the amount over $32,550 |
| $65,725 | $100,150 | $12,775 plus 28% of the amount over $65,725 |
| $100,150 | $178,850 | $22,414 plus 33% of the amount over $100,150 |
| $178,850 | no limit | $48,385 plus 35% of the amount over $178,850 |
| For heads of households | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $11,450 | 10% of the amount over $0 |
| $11,450 | $43,650 | $1,145 plus 15% of the amount over $11,450 |
| $43,650 | $112,650 | $5,975 plus 25% of the amount over $43,650 |
| $112,650 | $182,400 | $23,225 plus 28% of the amount over $112,650 |
| $182,400 | $357,700 | $42,755 plus 33% of the amount over $182,400 |
| $357,700 | no limit | $100,605 plus 35% of the amount over $357,700 |
Here is how the brackets change in 2009.
| These tables can help you estimate your tax bill | ||
|---|---|---|
| For single taxpayers | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $8,350 | 10% of the amount over $0 |
| $8,350 | $33,950 | $835 plus 15% of the amount over $8,350 |
| $33,950 | $82,250 | $4,675 plus 25% of the amount over $33.950 |
| $82,250 | $171,550 | $16,750 plus 28% of the amount over $82,250 |
| $171,550 | $372,950 | $41,754 plus 33% of the amount over $171,550 |
| $372,950 | no limit | $108,216 plus 35% of the amount over $372,950 |
| For married couples filing jointly* | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $16,700 | 10% of the amount over $0 |
| $16,700 | $67,900 | $1,670 plus 15% of the amount over $16,700 |
| $67,900 | $137,050 | $9,350 plus 25% of the amount over $67,900 |
| $137,050 | $208,850 | $26,637.50 plus 28% of the amount over $137,050 |
| $208,850 | $372,950 | $46,741.50 plus 33% of the amount over $208,850 |
| $372,950 | no limit | $100,894.50 plus 35% of the amount over $372,950 |
| * Or qualifying widow(er) | ||
| For married couples filing separately | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $8,350 | 10% of the amount over $0 |
| $8,350 | $33,950 | $835 plus 15% of the amount over $8,350 |
| $33,950 | $68,525 | $4,675 plus 25% of the amount over $33,950 |
| $68,525 | $104,425 | $13,318.75 plus 28% of the amount over $68,525 |
| $104,425 | $186,475 | $23,370.75 plus 33% of the amount over $104,425 |
| $186,475 | no limit | $50,447.25 plus 35% of the amount over $186,475 |
| For heads of households | ||
| If taxable income is over -- | But not over -- | The tax is: |
| $0 | $11,950 | 10% of the amount over $0 |
| $11,950 | $45,500 | $1,195 plus 15% of the amount over $11,950 |
| $45,500 | $117,450 | $6,227.50 plus 25% of the amount over $45,500 |
| $117,450 | $190,200 | $24,215 plus 28% of the amount over $117,450 |
| $190,200 | $372,950 | $44,585 plus 33% of the amount over $190,200 |
| $372,950 | no limit | $104,892.50 plus 35% of the amount over $372,950 |
Updated Dec. 10, 2008
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