To give you a head start on the 2016 tax year, Bloomberg BNA has released their tax rate/bracket predictions.
The Federal income tax currently consists of 7 rate brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe in April depends on your filing status and income level.
Remember, only the money you earn within a specific tax bracket is subject to that specific tax rate. If you earn more income and move into a higher tax bracket, not all of your income will be taxed at the higher rate.
Here are the projected Federal tax rates that will apply to your 2016 income (listed by filing status):
Single
| Taxable Income | Tax Rate |
| $0—$9,275 | 10% |
| $9,276—$37,650 | $927.50 plus 15% of the amount over $9,275 |
| $37,651—$91,150 | $5,183.75 plus 25% of the amount over $37,650 |
| $91,151—$190,150 | $18,558.75 plus 28% of the amount over $91,150 |
| $190,151—$ 413,350 | $46,278.75 plus 33% of the amount over $190,150 |
| $413,351—$415,050 | $119,934.75 plus 35% of the amount over $413,350 |
| $415,051 or more | $120,529.75 plus 39.6% of the amount over $415,050 |
Married Filing Jointly or Qualifying Widow(er)
| Taxable Income | Tax Rate |
| $0—$18,550 | 10% |
| $18,551—$75,300 | $1,855 plus 15% of the amount over $18,550 |
| $75,301—$151,900 | $10,367.50 plus 25% of the amount over $75,300 |
| $151,901—$231,450 | $29,517.50 plus 28% of the amount over $151,900 |
| $231,451—$413,350 | $51,791.50 plus 33% of the amount over $231,450 |
| $413,351—$466,950 | $111,818.50 plus 35% of the amount over $413,350 |
| $466,951 or more | $130,578.50 plus 39.6% of the amount over $466,950 |
Married Filing Separately
| Taxable Income | Tax Rate |
| $0—$9,275 | 10% |
| $9,276—$37,650 | $927.50 plus 15% of the amount over $9,275 |
| $37,651—$75,950 | $5,183.75 plus 25% of the amount over $37,650 |
| $75,951—$115,725 | $14,758.75 plus 28% of the amount over $75,950 |
| $115,726—$206,675 | $25,895.75 plus 33% of the amount over $115,725 |
| $206,676—$233,475 | $55,909.25 plus 35% of the amount over $206,675 |
| $233,476 or more | $65,289.25 plus 39.6% of the amount over $233,475 |
Head of Household
| Taxable Income | Tax Rate |
| $0—$13,250 | 10% |
| $13,251—$50,400 | $1,325 plus 15% of the amount over $13,250 |
| $50,401—$130,150 | $6,897.50 plus 25% of the amount over $50,400 |
| $130,151—$210,800 | $26,835 plus 28% of the amount over $130,150 |
| $210,801—$413,350 | $49,417 plus 33% of the amount over $210,800 |
| $413,351—$441,000 | $116,258.50 plus 35% of the amount over $413,350 |
| $441,001 or more | $125,936 plus 39.6% of the amount over $441,000 |
See the full Bloomberg BNA report [PDF] for more 2016 tax figures and projections.
