Your marginal tax bracket determines how much of the earnings from savings and investments you get to keep after taxes. Below are the four individual tax rate schedules for 2017: Individual Tax Rate Schedules for 2017Filing Status | Taxable Income ($) | Marginal Tax Bracket Rate (%) |
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Married Filing Jointly | 0 to 18,450 | 10 | 18,451 to 74,900 | 15 | 74,901 to 151,200 | 25 | 151,201 to 230,450 | 28 | 230,451 to 411,500 | 33 | 411,501 to 464,850 | 35 | 464,851 and higher | 39.6 | Head of Household | 0 to 13,150 | 10 | 13,151 to 50,200 | 15 | 50,201 to 129,600 | 25 | 129,601 to 290,850 | 28 | 209,8511 to 411,500 | 33 | 411,501 to 439,000 | 35 | 493,001 and higher | 39.6 | Single | 0 to 9,225 | 10 | 9,226 to 37,450 | 15 | 37,451 to 90,750 | 25 | 90,751 to 189,300 | 28 | 189,301 to 411,500 | 33 | 411,501 to 413,200 | 35 | 413,201 and higher | 39.6 | Married Filing Separately | 0 to 9,225 | 10 | 9,226 to 37,450 | 15 | 37,451 to 75,600 | 25 | 75,601 to 115,225 | 28 | 115,226 to 205,750 | 33 | 205,751 to 232,425 | 35 | 232,426 and higher | 39.6 |
Tax-Exempt and Taxable Yields Compared*Tax-Exempt Yield (%) | Taxable Equivalent Yield (%) for Tax Rate of: |
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15% Tax Bracket | 25% Tax Bracket | 28% Tax Bracket | 33% Tax Bracket | 35% Tax Bracket | 39.6% Tax Bracket |
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2.0 | 2.35 | 2.66 | 2.77 | 2.98 | 3.08 | 3.31 | 2.5 | 2.94 | 3.33 | 3.47 | 3.73 | 3.85 | 4.14 | 3.0 | 3.53 | 4.00 | 4.17 | 4.48 | 4.62 | 4.97 | 3.5 | 4.18 | 4.66 | 4.86 | 5.22 | 5.38 | 5.79 | 4.0 | 4.71 | 5.33 | 5.55 | 5.97 | 6.15 | 6.62 | 4.5 | 5.29 | 6.00 | 6.25 | 6.71 | 6.92 | 7.45 | 5.0 | 5.88 | 6.66 | 6.94 | 7.46 | 7.69 | 8.28 | 5.5 | 6.47 | 7.33 | 7.63 | 8.20 | 8.46 | 9.11 | 6.0 | 7.06 | 8.00 | 8.33 | 8.95 | 9.23 | 9.93 | 6.5 | 7.65 | 8.66 | 9.02 | 9.70 | 10.00 | 10.76 | 7.0 | 8.24 | 9.33 | 9.72 | 10.44 | 10.77 | 11.59 | | *Federal income tax rates only. Does not include state income tax. |
If you cannot find a specific rate on the chart you can compare yields by using the following formula: Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %) Example: Assume you are in the 25% tax bracket, and have an account with a 4.5% tax-free yield. To get the equivalent taxable yield, divide 4.5% by 75% (100% - 25%). The taxable yield is 6.%. IMPORTANT DISCLOSURES Financial Visions does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. |