Tax Lawyer's Blog

William Perez has published the 2010 tax rate schedules:

Single Filing Status

[Tax Rate Schedule X, Internal Revenue Code section 1(c)]

• 10% on income between $0 and $8,375
• 15% on the income between $8,375 and $34,000; plus $837.50
• 25% on the income between $34,000 and $82,400; plus $4,681.25
• 28% on the income between $82,400 and $171,850; plus $16,781.25
• 33% on the income between $171,850 and $373,650; plus $41,827.25
• 35% on the income over $373,650; plus $108,421.25

Married Filing Jointly or Qualifying Widow(er) Filing Status

[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]

• 10% on the income between $0 and $16,750
• 15% on the income between $16,750 and $68,000; plus $1,675
• 25% on the income between $68,000 and $137,300; plus $9,362.50
• 28% on the income between $137,300 and $209,250; plus $26,687.50
• 33% on the income between $209,250 and $373,650; plus $46,833.50
• 35% on the income over $373,650; plus $101,085.50

Married Filing Separately Filing Status

[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]

• 10% on the income between $0 and $8,375
• 15% on the income between $8,375 and $34,000; plus $837.50
• 25% on the income between $34,000 and $68,650; plus $4,681.25
• 28% on the income between $68,650 and $104,625; plus $13,343.75
• 33% on the income between $104,625 and $186,825; plus $23,416.75
• 35% on the income over $186,825; plus $50,542.75

Head of Household Filing Status

[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]

• 10% on the income between $0 and $11,950
• 15% on the income between $11,950 and $45,550; plus $1,195
• 25% on the income between $45,550 and $117,650; plus $6,235
• 28% on the income between $117,650 and $190,550; plus $24,260
• 33% on the income between $190,550 and $373,650; plus $44,672
• 35% on the income over $373,650; plus $105,095

William then tells readers how the marginal tax rates might be used:

Individuals can use the tax rate schedules in a number of ways to help plan their finances. You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket.

Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. For a taxpayer in the 28% tax bracket will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.

You might want to print these rate schedules out, frame them and put them on your historical artifacts wall next to your copy of the Northwest Ordinance because we aren’t going to see tax rates this low again for a very, very long time.

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