See How Federal Tax Brackets & Rates Effect Your Taxes

Over the decades, federal tax rates have run the gambit with tax rates that have been astronomically above what we see today for the higher income earners. Today's federal income tax rates represent a much closer range throughout all tax brackets than from the past.

Federal Income Tax Rate History

Historical tax rates for the United States federal government put higher income earners in a much more constrictive position with tax rates as high as 91% back in the 1950's.

Now days, those tax rate gaps between the lowest and highest income earners are much more narrow than they use to be.

U.S. Income Tax Rates are associated to out federal tax brackets based on the tax filing status you choose.

Our federal IRS income tax calculator used these factors to calculate your overall federal tax bill. By claiming tax deductions, every tax filer has the opportunity to possibly lower their taxable income, and therefore lower their tax brackets and tax rates in order to possible pay less taxes on their remaining taxable income.

Federal Tax Rate History Chart

93 - 2000 2001 2002 03 - 2012 13 - Now
    10% 10% 10%
15% 15% 15% 15% 15%
28% 27.5% 27% 25% 25%
31% 30.5% 30% 28% 28%
36% 35.5% 35% 33% 33%
39.6% 39.1% 38.6% 35% 35%
        39.6%

Tax Deductions Lower Overall Taxable Income

Tax deductions come from many facets of our tax code.

Home mortgage, Medical expenses, Education expenses, Dependants, Job expenses, and much more.

Deductions can push your taxable income down into lower tax bracket rates.

The tax rates describe the ratio or percentage at which taxpayers are taxed based on federal tax filing status. And each of the tax brackets increase your tax rate as your income grows and pushes you up into these higher tax brackets and associated higher tax rates.

Several formats can be used to determine your tax rate based on your preference for how you like to analyze your tax rate.

These Federal Tax Rate Formats Include:

Statutory Tax Rate: This is the actual multiple level statutory rates related to your tax brackets and overall taxable income.

Average Tax Rate: This refers to the ratio of total taxes paid - to your total taxable income, expressed as a percentage of your income.

Marginal Tax Rate: This refers to the tax rate a taxpayer pays on the last dollar earned in their annual income. This is the highest rate paid from the highest tax bracket your income falls within. The highest marginal tax rate for 2015 is 39.6%.

Effective Tax Rate: An effective tax rate calculation is generally used to measure the total amount of taxes paid as a flat percentage of the individuals or company's gross income, as apposed to a percentage of the taxable income in the same circumstances.