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What Tax Bracket Am I In?

January 29, 2024

What Tax Bracket Am I In?

What tax bracket am I in and why does it matter? There are seven different tax brackets in the United States, ranging from 10 to 37 percent. Your bracket will determine your tax rate, which is important when it’s time to file for the year. In this guide, we walk you through how tax brackets work and what are the tax brackets currently. Let’s get started, and feel free to contact IntentGen with any questions along the way! 

How Do Tax Brackets Work?

Let’s start with the basics: how do tax brackets work? The United States uses what’s called a “progressive tax system.” This means that if you have a lower income level, you’ll pay lower tax rates. If you have a higher income level, you’ll pay higher tax rates. Ordinary income is taxed at the rates of 10, 12, 22, 24, 32, 35 and 37 percent.

What if you get a raise and move up into the next tax bracket? Some Naperville taxpayers worry that this means they’ll pay a substantially higher rate than the previous year, negating the effects of that raise. But the good news is that each rate applies only to a specific portion of income, rather than to your total income. That means only the amount of money in the next tax bracket will be charged at the higher rate, not your entire income for the year.

What are the Tax Brackets for 2023?

The answer to “What is my tax bracket?” will depend on your filing status. Take a look at the 2023 tax brackets for the four different statuses in Plainfield:

Single Filing Status

  • Not over $11,000: 10% of taxable income
  • $11,000 - $44,725: $1,100 plus 12% of the excess over $11,000
  • $44,725 - $95,375: $5,147 plus 22% of the excess over $44,725
  • $95,375 - $182,100: $16,290 plus 24% of the excess over $95,375
  • $182,100 - $231,250:$37,104 plus 32% of the excess over $182,100
  • $231,250 - $578,125: $52,832 plus 35% of the excess over $231,250
  • Over $578,125: $174,238.25 plus 37% of the excess over $578,125

Married Filing Separately

  • Not over $11,000: 10% of taxable income
  • $11,000 - $44,725: $1,100 plus 12% of the excess over $11,000
  • $44,725 - $95,375: $5,147 plus 22% of the excess over $44,725
  • $95,375 - $182,100: $16,290 plus 24% of the excess over $95,375
  • $182,100 - $231,250: $37,104 plus 32% of the excess over $182,100
  • $231,250 - $346,875: $52,832 plus 35% of the excess over $231,250
  • Over $346,875: $93,300.75 plus 37% of the excess over $346,875

Married Filing Jointly 

  • Not over $22,000: 10% of taxable income
  • $22,000 - $89,450: $2,200 plus 12% of the excess over $22,000
  • $89,450 - $190,750: $10,294 plus 22% of the excess over $89,450
  • $190,750 - $364,200: $32,580 plus 24% of the excess over $190,750
  • $364,200 - $462,500: $74,208 plus 32% of the excess over $364,200
  • $462,500 - $693,750: $105,664 plus 35% of the excess over $462,500
  • Over $693,750: $186,601.50 plus 37% of the excess over $693,750

Head of Household

  • Not over $15,700: 10% of taxable income
  • $15,700 - $59,850: $1,570 plus 12% of the excess over $15,700
  • $59,850 - $95,350: $6,868 plus 22% of the excess over $59,850
  • $95,350 - $182,100: $14,678 plus 24% of the excess over $95,350
  • $182,100 - $231,250: $35,498 plus 32% of the excess over $182,100
  • $231,250 - $578,100: $51,226 plus 35% of the excess over $231,250
  • Over $578,100: $172,623.50 plus 37% of the excess over $578,100

Learn How to Do Tax Bracket Work with IntentGen

Taxes can be confusing, but luckily, the experts at IntentGen can guide you through every step of the filing process with ease. Get to know our financial planning team in Naperville and feel free to contact us with any questions along the way.