Below is a table with tax brackets to be used filing taxes for income earned in 2015.
Tax brackets give better idea of estimating how much you’ll owe in taxes and optimize your withholding amount. (For more accurate calculations on withholding, check out the IRS’s Withholding Calculator.) Note that the bracket amounts apply to your earning after deductions to your gross income. It is the taxable income that you should be concerned about.
On the side note, I was reviewing the tax brackets for the past few years and noticed that the taxpayers may have received a bit if a tax “break.” The wage growth was miniscule (more on wage growth trend, click here or here), but the bracket size have expended slightly. Although it doesn’t amount to much, it is still a win in the form of smaller effective tax rate for those whose wages have been stagnant.
Here’s an example, if you are a single tax payer who has earned $50,000 for the past three years (for simplicity let’s assume that your gross income is also your taxable income), your actual tax rate would be:
This is not true for all income levels, but for the higher the income levels these observations are valid.