Tax Rates

2017 Income Tax Brackets

The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status.

It’s important to understand that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.

Single

Taxable IncomeTax Rate
$0 - $9,32510%
$9,326 - $37,950$932.50 plus 15% of the amount over $9,325
$37,951 - $91,900$5,226.25 plus 25% of the amount over $37,950
$91,901 - $191,650$18,713.75 plus 28% of the amount over $91,900
$191,651 - $416,700$46,643.75 plus 33% of the amount over $191,650
$416,701 - $418,400$120,910.25 plus 35% of the amount over $416,700
$418,401 or more$121,505.25 plus 39.6% of the amount over $418,400

Married Filing Jointly or Qualifying Widow(er)

Taxable IncomeTax Rate
$0 - $18,65010%
$18,651 - $75,900$1,865 plus 15% of the amount over $18,650
$75,901 - $153,100$10,452.50 plus 25% of the amount over $75,900
$153,101 - $233,350$29,752.50 plus 28% of the amount over $153,100
$233,351 - $416,700$52,222.50 plus 33% of the amount over $233,350
$416,701 - $470,700$112,728 plus 35% of the amount over $416,700
$470,701 or more$131,628 plus 39.6% of the amount over $470,700

Married Filing Separately

Taxable IncomeTax Rate
$0 - $9,32510%
$9,326 - $37,950$932.50 plus 15% of the amount over $9,325
$37,951 - $76,550$5,226.25 plus 25% of the amount over $37,950
$76,551 - $116,675$14,876.25 plus 28% of the amount over $76,550
$116,676 - $208,350$26,111.25 plus 33% of the amount over $116,675
$208,351 - $235,350$56,364 plus 35% of the amount over $208,350
$235,351 or more$65,814 plus 39.6% of the amount over $235,350

Head of Household

Taxable IncomeTax Rate
$0 - $13,35010%
$13,351 - $50,800$1,335 plus 15% of the amount over $13,350
$50,801 - $131,200$6,952.50 plus 25% of the amount over $50,800
$131,201 - $212,500$27,052.50 plus 28% of the amount over $131,200
$212,501 - $416,700$49,816.50 plus 33% of the amount over $212,500
$416,701 - $444,550$117,202.50 plus 35% of the amount over $416,700
$444,551 or more$126,950 plus 39.6% of the amount over $444,550

2017 Personal Exemption Amounts

For tax year 2017, the personal exemption amount is $4,050 (the same as 2016).

You are allowed to claim one personal exemption for yourself and one for your spouse (if married). However, if somebody else can list you as a dependent on their tax return, you are not permitted to claim a personal exemption for yourself.

The personal exemption amount “phases out” for taxpayers with higher incomes. The Personal Exemption Phaseout (PEP) thresholds are as follows:

Filing StatusPEP Threshold StartsPEP Threshold Ends
Single$261,500$384,000
Married Filing Jointly$313,800$436,300
Married Filing Separately$156,900$218,150
Head of Household$287,650$410,150

2017 Standard Deduction Amounts

There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both.

For example, if you claim the standard deduction, you cannot itemize deductions – and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2017, the standard deduction amounts are as follows:

Filing StatusStandard Deduction
Single$6,350
Married Filing Jointly$12,700
Married Filing Separately$6,350
Head of Household$9,350
Qualifying Widow(er)$12,700