2016 Federal Income Tax Brackets and Marginal Rates
Individual Tax Rate Schedules for 2016
|Filing Status||Taxable Income ($)||Marginal Tax Bracket Rate (%)|
|Married Filing Jointly||0 to 18,550||10|
|18,551 to 75,300||15|
|75,301 to 151,900||25|
|151,901 to 231,450||28|
|231,451 to 413,350||33|
|413,351 to 466,950||35|
|466,951 and higher||39.6|
|Head of Household||0 to 13,250||10|
|13,251 to 50,400||15|
|50,401 to 130,150||25|
|130,501 to 210,800||28|
|210,801 to 413,500||33|
|413,351 to 441,000||35|
|441,001 and higher||39.6|
|Single||0 to 9,225||10|
|9,276 to 37,650||15|
|37,651 to 91,150||25|
|91,151 to 190,150||28|
|190,151 to 413,350||33|
|413,351 to 415,050||35|
|415,051 and higher||39.6|
|Married Filing Separately||0 to 9,275||10|
|9,276 to 37,650||15|
|37,651 to 75,950||25|
|75,950 to 115,725||28|
|115,726 to 206,675||33|
|206,675 to 233,475||35|
|233,475 and higher||39.6|
Numbers provided by https://www.irs.com/articles/projected-us-tax-rates-2016.
|Tax-Exempt Yield (%)||Taxable Equivalent Yield (%) for Tax Rate of:|
|15% Tax Bracket||25% Tax Bracket||28% Tax Bracket||33% Tax Bracket||35% Tax Bracket||39.6% Tax Bracket|
|*Federal income tax rates only. Does not include state income tax.|
*Federal income tax rates only. Does not include state income tax.
If you cannot find a specific rate on the chart you can compare yields by using the following formula:
Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %)
Example: Assume you are in the 25% tax bracket, and have an account with a 4.5% tax-free yield. To get the equivalent taxable yield, divide 4.5% by 75% (100% - 25%). The taxable yield is 6.%.
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© Financial Visions, 2013 (updated 1/9/2013)