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Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S.
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) Required: How much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate?
2021 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,950 | 10% of taxable income |
$ 9,950 | $ 40,525 | $995 plus 12% of the excess over $9,950 |
$ 40,525 | $ 86,375 | $4,664 plus 22% of the excess over $40,525 |
$ 86,375 | $ 164,925 | $14,751 plus 24% of the excess over $86,375 |
$ 164,925 | $ 209,425 | $33,603 plus 32% of the excess over $164,925 |
$ 209,425 | $ 523,600 | $47,843 plus 35% of the excess over $209,425 |
$ 523,600 | $157,804.25 plus 37% of the excess over $523,600 |
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 19,900 | 10% of taxable income |
$ 19,900 | $ 81,050 | $1,990 plus 12% of the excess over $19,900 |
$ 81,050 | $ 172,750 | $9,328 plus 22% of the excess over $81,050 |
$ 172,750 | $ 329,850 | $29,502 plus 24% of the excess over $172,750 |
$ 329,850 | $ 418,850 | $67,206 plus 32% of the excess over $329,850 |
$ 418,850 | $ 628,300 | $95,686 plus 35% of the excess over $418,850 |
$ 628,300 | $168,993.50 plus 37% of the excess over $628,300 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,200 | 10% of taxable income |
$ 14,200 | $ 54,200 | $1,420 plus 12% of the excess over $14,200 |
$ 54,200 | $ 86,350 | $6,220 plus 22% of the excess over $54,200 |
$ 86,350 | $ 164,900 | $13,293 plus 24% of the excess over $86,350 |
$ 164,900 | $ 209,400 | $32,145 plus 32% of the excess over $164,900 |
$ 209,400 | $ 523,600 | $46,385 plus 35% of the excess over $209,400 |
$ 523,600 | $156,355 plus 37% of the excess over $523,600 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,950 | 10% of taxable income |
$ 9,950 | $ 40,525 | $995 plus 12% of the excess over $ 9,950 |
$ 40,525 | $ 86,375 | $4,664 plus 22% of the excess over $40,525 |
$ 86,375 | $ 164,925 | $14,751 plus 24% of the excess over $86,375 |
$ 164,925 | $ 209,425 | $33,603 plus 32% of the excess over $164,925 |
$ 209,425 | $ 314,150 | $47,843 plus 35% of the excess over $209,425 |
$ 314,150 | $84,496.75 plus 37% of the excess over $314,150 |
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