The United States uses a progressive tax system, which means different portions of your income are taxed at different rates. To learn more about this system and how it impacts your taxes, see the full TurboTax article about tax brackets.
Which tax bracket are you in? No matter which category you fall into, it is important to know where you stand for the upcoming tax season. We have tips to help lower or maintain your current tax bracket. Learn more from this tax bracket infographic on the TurboTax blog.
Did you know that not everyone or every dollar earned is taxed the exact same amount? For the 2016 tax year, there are seven tax brackets of varying size with the lowest bracket being subject to a 10% marginal tax rate and the highest being subject to 39.6%. Read more about tax brackets in this TurboTax Blog post.
Even if you live in a state that has no income tax, your city may levy a variety of taxes that could eat away the entire benefit of living in an income tax-free state, including property taxes, sales taxes and auto taxes.
If you happen be among this country’s 1% of wealthiest Americans, you are also in the highest tax bracket. Here are a few helpful state tax tips for millionaires.
Visit our website to learn all about IRS tax forms.
What is my tax bracket? The term “tax bracket” refers to the highest tax rate charged on your income.