The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels.Publishing documents on edocr is a proven way to start demand generation for your products and services. Thousands of professionals and businesses publish marketing (brochures, data sheets, press releases, white papers and case studies), sales (slides, price lists and pro-forma agreements), operations (specifications, operating manuals, installation guides), customer service (user manuals) and financial (annual reports and financial statements) documents making it easier for prospects and customers to find content, helping them to make informed decisions. #SEO #leadgen #content #analytics
<p>FISCAL
FACT
The Tax Foundation is a 501(c)(3)
non-partisan, non-profit research
institution founded in 1937 to
educate the public on tax policy.
Based in Washington, D.C., our
economic and policy analysis is
guided by the principles of sound
tax policy: simplicity, neutrality,
transparency, and stability.
©2015 Tax Foundation
Distributed under
Creative Commons CC-BY-NC 4.0
Editor, Melodie Bowler
Designer, Dan Carvajal
Tax Foundation
1325 G Street, NW, Suite 950
Washington, DC 20005
202.464.6200
taxfoundation.org
2016 Tax Brackets
By Kyle Pomerleau
Economist
Oct. 2015
No. 486
Introduction
Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done
to prevent what is called “bracket creep.” This is the phenomenon by which people
are pushed into higher income tax brackets or have reduced value from credits or
deductions due to inflation, instead of any increase in real income.
The IRS uses the Consumer Price Index (CPI) to calculate the past year’s inflation
and adjusts income thresholds, deduction amounts, and credit values accordingly.
Rather than directly adjusting last year’s values for annual inflation, each provision is
adjusted from a specified base year. For more information, see Methodology, below.
Estimated Income Tax Brackets and Rates
In 2016, the income limits for all brackets and all filers will be adjusted for inflation
and will be as follows (Table 1). The top marginal income tax rate of 39.6 percent will
hit taxpayers with adjusted gross income of $415,050 and higher for single filers and
$466,950 and higher for married filers.
Table 1.
2016 Taxable Income Brackets and Rates (Estimate)
Rate
Single Filers
Married Joint Filers
Head of Household Filers
10%
$0 to $9,275
$0 to $18,550
$0 to $13,250
15%
$9,275 to $37,650
$18,550 to $75,300
$13,250 to $50,400
25%
$37,650 to $91,150
$75,300 to $151,900
$50,400 to $130,150
28%
$91,150 to $190,150
$151,900 to $231,450
$130,150 to $210,800
33%
$190,150 to $413,350
$231,450 to $413,350
$210,800 to $413,350
35%
$41