2018 - 2019 Tax Software Reviews, Tips, and Tools

Calculate Federal Tax Brackets & Rates 2018 - 2019

The U.S. government sets the tax brackets and tax rates each year. This is done based on a few factors.

  • The legitimate ones include the cost of living adjustments as well as inflation.

  • The non legitimate ones include our governments out of control spending that tortures our deficit, and the greed that comes along with big business manipulating our government into all those corporate tax breaks that insure our deficit will continue to grow.

Ok, enough of the stressful news about how the common man continues to be responsible to pay for government waste.

So here is how our tax brackets and tax rates calculator works: select your tax filing status and then the tax year you are filing to see the list of Tax Brackets and Tax Rates. Below that you can calculated the amount of federal income taxes you will owe based on those tax brackets and rates. Simple!

How To Calculate Federal Tax Brackets

With the new tax laws for 2018 - 2019 in place, there are seven different tax brackets with corresponding tax rates. How much you will actually owe depends on both your income and your tax filing status.

Tax Rates Taxable Income Brackets
10% $0 to $9,525
12% $9,526 to $38,700
22% $38,701 to $82,500
24% $82,501 to $157,500
32% $157,501 to $200,000
35% $200,001 to $500,000
37% $500,001 or more

How Tax Brackets Effect Tax Rates You PayTax brackets show you the tax rate you will pay on each portion of income you earn falling within each tax bracket.

For example, if you are single, the lowest tax rate of 10% is applied to the first tax bracket with an income up to $9,525 of your 2018 earnings. The next chunk of your taxable income is then taxed at 12%, and so on up the tax bracket chart, up to the total amount of taxable income earned.

The progressive tax system ensures each taxpayer pays the same rates on the same levels of taxable income. The end effect is that people that have higher incomes pay higher taxes on higher earnings.

The government system determines how much taxpayers owe by dividing taxable income into chunks — also known as tax brackets —  so each chunk gets taxed at the corresponding income tax rate. Regardless of which bracket you’re in, you don’t pay that tax rate on your entire taxable income.

How To Calculate Federal Tax Rates

Federal Income Tax Rates are the tax rates paid on each tax bracket which is based on your annual income.

Your actual tax rate is a variable percentage since each portion of your income is taxed at the tax bracket rate that it falls into. As your income increases into another tax bracket, that portion of income is taxed at the higher rate.

The current tax rates of 10, 12, 22, 24, 32, 35, and 37 percent are applied for the 2018 - 2019 tax season.

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Tax Brackets and Tax Rates Calculator

How The Tax Brackets and Rates Calculator Works

So now that you have had the chance to look at our calculator, we will give you a breakdown of how it operates.

To start with as you can see there is a tax rate that resides next to each set of tax brackets. This is the tax rate you will pay for that portion of income falling within each tax bracket. Simple right? Not!

So what the calculator is doing is calculating how much taxes you owe for the amounts in each tax bracket then adding them together to get your total taxes due based on marginal tax rates, and your total income.

Internal Revenue Service Announces New Tax Bracket and Rates Annually As Tax Laws Change

The Internal Revenue Service announces the annual inflation adjustments for a each year, including tax rate schedules, tax tables, and the cost-of-living adjustments that are made for certain tax items.

These are the applicable numbers used each tax year to determine the new years tax rates that you’ll use to prepare your tax returns on an annual basis. These tax brackets and tax rates are generally available quite a bit ahead of time for any new upcoming tax year.

For some reason, our government CAN'T balance the budget or even come up with one on time. But, they can figure how much they will increase our taxes way ahead of time so that we can stress about it...