IRS Tax Brackets and Deduction Amounts for Tax Year 2015

2015 Income Tax Brackets

The Federal income tax has 7 tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your filing status and income level.

What Are Your Filing Status Options?

There are 5 options for filing status:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow/Widower

It’s important to realize that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular tax bracket is subject to that particular tax rate.

Single:

Taxable Income            Tax Rate

$0 to $9,225                   10%

$9,226 to $37,450          $922.50 plus 15% of the amount over $9,225

$37,451 to $90,750         $5,156.25 plus 25% of the amount over $37,450

$90,751 to $189,300       $18,481.25 plus 28% of the amount over $90,750

$189,301 to $411,500     $46,075.25 plus 33% of the amount over $189,300

$411,501 to $413,200     $119,401.25 plus 35% of the amount over $411,500

$413,201 or more            $119,996.25 plus 39.6% of the amount over $413,200

 Married Filing Jointly or Qualifying Widow(er):

Taxable Income            Tax Rate

$0 to $18,450                   10%

$18,451 to $74,900            $1,845.00 plus 15% of the amount over $18,450

$74,901 to $151,200         $10,312.50 plus 25% of the amount over $74,900

$151,201 to $230,450        $29,387.50 plus 28% of the amount over $151,200

$230,451 to $411,500        $51,577.50 plus 33% of the amount over $230,450

$411,501 to $464,850        $111,324.00 plus 35% of the amount over $411,500

$464,851 or more              $129,996.50 plus 39.6% of the amount over $464,850

Married Filing Separately:

Taxable Income            Tax Rate

$0 to $9,225                   10%

$9,226 to $37,450            $922.50 plus 15% of the amount over $9,225

$37,451 to $75,600          $5,156.25 plus 25% of the amount over $37,450

$75,601 to $115,225        $14,693.75 plus 28% of the amount over $75,600

$115,226 to $205,750      $25,788.75 plus 33% of the amount over $115,225

$205,751 to $232,425      $55,662.00 plus 35% of the amount over $205,750

$232,426 or more            $64,998.25 plus 39.6% of the amount over $232,425

Head of Household:

Taxable Income            Tax Rate

$0 to $13,150                  10%

$13,151 to $50,200          $1,315.00 plus 15% of the amount over $13,150

$50,201 to $129,600        $6,872.50 plus 25% of the amount over $50,200

$129,601 to $209,850      $26,772.50 plus 28% of the amount over $129,600

$209,851 to $411,500      $49,192.50 plus 33% of the amount over $209,850

$411,501 to $439,000       $115,737.00 plus 35% of the amount over $411,500

$439,001 or more            $125,362.00 plus 39.6% of the amount over $439,000

2015 Personal Exemption Amounts

You are allowed to claim one personal exemption for yourself and one for your spouse (if married). However, if somebody else can list you as a dependent on their tax return, you are not permitted to claim a personal exemption for yourself.

For tax year 2015, the personal exemption amount is $4,000 (up from $3,950 in 2014).

The personal exemption amount “phases out” for taxpayers with higher incomes. The Personal Exemption Phase-out (PEP) thresholds are as follows:

Filing Status            PEP Threshold Starts            PEP Threshold Ends

Single                                    $258,250                              $380,750

Married Filing Jointly              $309,900                             $432,400

Married Filing Separately       $154,950                              $216,200

Head of Household               $284,050                             $406,550

2015 Standard Deduction Amounts

There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both. For example, if you claim the standard deduction, you cannot itemize deductions – and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2015, the standard deduction amounts are as follows:

Filing Status            Standard Deduction

Single                                     $6,300

Married Filing Jointly              $12,600

Married Filing Separately       $6,300

Head of Household               $9,250

Qualifying Widow(er)             $12,600