Income tax in the United States is applied at a progressive tax rate. There is a misconception that when people earn a certain amount of money it is all taxed at the higher rate. In fact, only the amount of money that extends into the higher bracket is taxed at the higher rate. In the income tax table below, determine the amount of tax owed within each bracket to make this a little easier to understand. Individual Taxpayers If Taxable income is Between Tax Rate The Tax Due is: 0 - $9,525 10% $9,526 - $38,700 12% + 12% of the amount over $9,525 $38,701 - $82,500 22% + 22% of the amount over $38,700 $82,501 - $157,500 24% + 24% of the amount over $82,500 $157,501 - $200,000 32% + 32% of the amount over $157,500 $200,001 - $500,000 35% + 35% of the amount over $200,000 $500,001 + 37% + 37% of the amount over $500,000 Married Filing Jointly Taxpayers If Taxable income is Between Tax Rate The Tax Due is: 0 - $19,050 10% $19,051 - $77,400 12% + 12% of the amount over $19,050 $77,401 - $165,000 22% + 22% of the amount over $77,400 $165,001 - $315,000 24% + 24% of the amount over $165,000 $315,001 - $400,000 32% + 32% of the amount over $315,000 $400,001 - $600,000 35% + 35% of the amount over $400,000 | $600,001 + 37% +37% of the amount over $600,000