Federal Income Tax Brackets 2012 to 2015

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Federal Income Tax BracketsThe federal income tax brackets are a fickle thing. Between political meddling and inflation, something changes every year. Of course, that streak is alive and well for next year.

There are two things that can happen to the tax brackets every year: the tax rates may change and the tax brackets can be adjusted for inflation.

When the tax rates change, you can blame Congress for messing with the tax laws (unless it’s in your favor).

Otherwise, the federal tax brackets are indexed to inflation. This prevents inflation creep from pushing you into a higher tax bracket. The IRS looks at the CPI data (Consumer Price Index) over a twelve month period. If inflation is high enough, the IRS will make adjustments to the income limits for each bracket.

Each October, the IRS announces the inflation adjustments to the federal income tax brackets for next year, along with many other tax credits and deductions. This gives you a two month head start to plan for next year.

You can plan ahead on your own with tax tools, a spreadsheet, or a good accountant. I use TurboTax to simplify the process. A little extra planning helps lower your taxable income before you file your taxes each year.

Before we get to the tax tables, here’s one last reminder. Don’t be too concerned if your income rose this year and you find yourself in a higher bracket. Based on how the tax brackets work, your tax bill might go up but so does your after tax income.

Choose the Tax Year
2015 2014 2013 2012

2015 Federal Income Tax Brackets

These tax tables are for the 2015 tax year, with taxes due in April 2016.

Single Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $9,225 10% 10% of the amount over $0
$9,225 – $37,450 15% $923 plus 15% of the amount over $9,225
$37,450 – $90,750 25% $5,156 plus 25% of the amount over $37,450
$90,750 – $189,300 28% $18,481 plus 28% of the amount over $90,750
$189,300 – $411,500 33% $46,075 plus 33% of the amount over $189,300
$411,500 – $413,200 35% $119,401 plus 35% of the amount over $411,500
Over $413,200 39.6% $119,996 plus 39.6% of the amount over $413,200

Married, Filing Jointly Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $18,450 10%  10% of the amount over $0
$18,450 – $74,900 15%  $1,845 plus 15% of the amount over $18,450
$74,900 – $151,200 25%  $10,313 plus 25% of the amount over $74,900
$151,200 – $230,450 28%  $29,388 plus 28% of the amount over $151,200
$230,450 – $411,500 33%  $51,578 plus 33% of the amount over $230,450
$411,500 – $464,850 35%  $111,324 plus 35% of the amount over $411,500
Over $464,850 39.6%  $129,997 plus 39.6% of the amount over $464,850

Head of Household Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $13,150 10% 10% of the amount over $0
$13,150 – $50,200 15% $1,315 plus 15% of the amount over $13,150
$50,200 – $129,600 25% $6,873 plus 25% of the amount over $50,200
$129,600 – $209,850 28% $26,723 plus 28% of the amount over $129,600
$209,850 – $411,500 33% $49,193 plus 33% of the amount over $209,850
$411,500 – $439,000 35% $115,737 plus 35% of the amount over $411,500
Over $439,000 39.6% $125,362 plus 39.6% of the amount over $439,000

Married, Filing Separately Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $9,225 10% 10% of the amount over $0
$9,225 – $37,450 15% $923 plus 15% of the amount over $9,225
$37,450 – $75,600 25% $5,156 plus 25% of the amount over $37,450
$75,600 – $115,225 28% $14,694 plus 28% of the amount over $75,600
$115,225 – $205,750 33% $25,789 plus 33% of the amount over $115,225
$205,750 – $232,425 35% $55,662 plus 35% of the amount over $205,750
Over $232,425 39.6% $64,989 plus 39.6% of the amount over $232,425

2015 Standard Deduction

The 2015 standard deductions are based off the 2013 numbers and adjusted for inflation.

Filing Status Standard Deduction
Single  $6,300
Married, Filing Jointly  $12,600
Head of Household  $9,250
Married, Filing Separately  $6,300

Other 2015 Tax Changes

There were several other tax changes made due to the inflation adjustment. Some of the more important changes are highlighted below with links to the respective pages:

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) exemption is finally tied to the inflation index. The 2015 AMT exemption for single filers is $53,600, for those married filing jointly is $83,400, and for married filing separately is $41,700.

Student Loan Interest Deduction

The student loan interest deduction allows you to deduct up to $2,500 in paid interest every year. This deduction has a phase-out period based on your modified adjustable gross income. The phase-out will begin for single filers at $65,000 and for married filing jointly at $130,000. The phase-out will end for single filers at $80,000 and for married filing jointly at $160,000.

Estate Taxes

Estate taxes were also tied to the inflation index last year. For 2014, the estate tax exclusion will be $5,430,000. Any amount over that will be taxed at 40%. If your net worth is hovering near this amount, I recommend talking with an estate tax attorney. They can help you build a solid estate plan that makes sure most of your estate goes where you want it to go and not to the government.

Previous Year Federal Tax Brackets

2014 Tax Brackets

These tables are for the 2014 tax year, with taxes due April 2015.

Single Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $9,075 10% 10% of the amount over $0
$9,075 – $36,900 15% $908 plus 15% of the amount over $9,075
$36,900 – $89,350 25% $5,081 plus 25% of the amount over $36,900
$89,350 – $186,350 28% $18,194 plus 28% of the amount over $89,350
$186,350 – $405,100 33% $45,354 plus 33% of the amount over $186,350
$405,100 – $406,750 35% $117,541 plus 35% of the amount over $405,100
Over $406,750 39.6% $118,189 plus 39.6% of the amount over $406,750

Married, Filing Jointly Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $18,150 10% 10% of the amount over $0
$18,150 – $73,800 15% $1,815 plus 15% of the amount over $18,150
$73,800 – $148,850 25% $10,163 plus 25% of the amount over $73,800
$148,850 – $226,850 28% $28,925 plus 28% of the amount over $148,850
$226,850 – $405,100 33% $50,765 plus 33% of the amount over $226,850
$405,100 – $457,600 35% $109,588 plus 35% of the amount over $405,100
Over $457,600 39.6% $127,963 plus 39.6% of the amount over $457,600

Head of Household Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $12,950 10% 10% of the amount over $0
$12,950 – $49,400 15% $1,295 plus 15% of the amount over $12,950
$49,400 – $127,550 25% $6,763 plus 25% of the amount over $49,400
$127,550 – $206,600 28% $26,300 plus 28% of the amount over $127,550
$206,600 – $405,100 33% $48,434 plus 33% of the amount over $206,600
$405,100 – $432,200 35% $113,939 plus 35% of the amount over $405,100
Over $432,200 39.6% $123,424 plus 39.6% of the amount over $432,200

Married, Filing Separately Tax Brackets

Taxable Income Tax Rate The Tax Is:
$0 – $9,075 10% 10% of the amount over $0
$9,075 – $36,900 15% $908 plus 15% of the amount over $9,075
$36,900 – $74,425 25% $5,081 plus 25% of the amount over $36,900
$74,425 – $113,425 28% $14,463 plus 28% of the amount over $74,425
$113,425 – $202,550 33% $25,383 plus 33% of the amount over $113,425
$202,550 – $228,800 35% $54,794 plus 35% of the amount over $202,550
Over $228,800 39.6% $63,981 plus 39.6% of the amount over $228,800

2013 Tax Brackets

These tax tables are for the 2013 tax year, with taxes due in April 2014.

Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household
 10% $0 – $8,925 $0 – $17,850 $0 – $8,925 $0 – $12,750
 15% $8,925 – $36,250 $17,850 – $72,500 $8,925 – $36,250 $12,750 – $48,600
 25% $36,250 – $87,850 $72,500 – $146,400 $36,250 – $73,200 $48,600 – $125,450
 28% $87,850 – $183,250 $146,400 – $223,050 $73,200 – $111,525 $125,450 – $203,150
 33% $183,250 – $398,350 $223,050 – $398,350 $111,525 – $199,175 $203,150 – $398,350
 35% $398,350 – $400,000 $398,350 – $450,000 $199,175 – $225,000 $398,350 – $425,000
 39.6% Over $400,000 Over $450,000 Over $225,000 Over $425,000

2012 Tax Brackets

These tax tables are for the 2012 tax year, with taxes due in April 2013.

Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household
10% $0 – $8,700 $0 – $17,400 $0 – $8,700 $0 – $12,400
15% $8,700 – $35,350 $17,400 – $70,700 $8,700 – $35,350 $12,400 – $47,350
25% $35,350 – $85,650 $70,700 – $142,700 $35,350 – $71,350 $47,350 –  $122,300
28% $85,650 – $178,650 $142,700 – 217,450 $71,350 – $108,725 $122,300 – $198,050
33% $178,650 – $388,350 $217,450 – $388,350 $108,725 – $194,175 $198,050 – $388,350
35% Over $388,350 Over $388,350 Over $194,175 Over $388,350
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