2009 Tax Brackets

For 2009, the six income tax rates for individual taxpayers are 10%, 15%, 25%, 28%, 33%, and 35%.

In addition to cutting tax rates, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 created the 10% tax bracket for lower incomes.

In 2009, for single taxpayers and married persons filing a separate return, the first $8,350 of income is taxed at this rate. For married persons filing a joint return, the first $16,700 is taxed at 10%. For persons filing as head of household, the first $11,950 is taxed at the 10% rate.

It helps to think of your tax rate in terms of a marginal tax rate. This is the tax rate on the last dollar of income that you earned. As your taxable income increases, you are taxed at a higher tax rate as a result of being bumped into a higher income tax bracket.

The following tables show the cutoff points in taxable income for 2009 that mark each income tax bracket:

Table A: Single tax return:

If taxable income is:		Amount of tax that you owe is:
More than:	However, not over:	This amount (or %) plus % of:	Amount over:
$0	$8,350	10%	--
$8,350	$33,950	$835 + 15%	$8,350
$33,950	$82,250	$4,675 + 25%	$33,950
$82,250	$171,550	$16,750 + 28%	$82,250
$171,550	$372,950	$41,754 + 33%	$171,550
$372,950	--	$108,216 + 35%	$372,950

Table B: Married Filing Jointly (MFJ) or Qualifying Widow(er):

If taxable income is:		Amount of tax that you owe is:
More than:	However, not over:	This amount (or %) plus % of:	Amount over:
$0	$16,700	10%	--
$16,700	$67,900	$1,670 + 15%	$16,700
$67,900	$137,050	$9,350 + 25%	$67,900
$137,050	$208,850	$26,638 + 28%	$137,050
$208,850	$372,950	$46,742 + 33%	$208,850
$372,950	--	$100,895 + 35%	$372,950

Table C: Head of Household tax return:

If taxable income is:		Amount of tax that you owe is:
More than:	However, not over:	This amount (or %) plus % of:	Amount over:
$0	$11,950	10%	--
$11,950	$45,500	$1,195 + 15%	$11,950
$45,500	$117,450	$6,228 + 25%	$45,500
$117,450	$190,200	$24,215 + 28%	$117,450
$190,200	$372,950	$44,585 + 33%	$190,200
$372,950	--	$104,893 + 35%	$372,950

Table D: Married Filing Separate (MFS) return:

If taxable income is:		Amount of tax that you owe is:
More than:	However, not over:	This amount (or %) plus % of:	Amount over:
$0	$8,350	10%	--
$8,350	$33,950	$835 + 15%	$8,350
$33,950	$68,525	$4,675 + 25%	$33,950
$68,525	$104,425	$13,319 + 28%	$68,525
$104,425	$186,475	$23,371 + 33%	$104,425
$186,475	--	$50,447 + 35%	$186,475

For example, say you file a single return and have taxable income of $40,000 in 2009. Using Table A, above, your tax liability would be $4,675 plus 25% of income above $33,950, or $6,050 in your case. That works out to be $1,513 for a total federal income tax liability of $6,188.

To prevent you from being bumped into the next-higher bracket as a result of a cost-of-living wage increase, the IRS adjusts upward the amount of income that can be earned for each tax bracket every year. This phenomenon of being bumped into the next-higher tax bracket is sometimes called "bracket creep."