U.S. Federal Income Tax Rates for 2018 - 2019

Every year we wait and watch while our politicians continue their greedy tactics of frivolous spending and budget deficit advancement. In turn, the American tax payers are left with tax rate increases in the attempt to keep up with our countries financial falter. No doubt a roll of the dice in this losing battle!

IRS Income Tax Rates 2018 - 2019

While this may be stressful to think about, no energy will be wasted in the effort to calculate your tax rates.

Our electronic tax rates calculator will make light of this process and keep you informed as tax rates are updated each year.

What's more is that you can also see how the tax bracket system determines how each portion of your income is taxed at increased rates, as your income increases.

The percentage of taxes you pay in each tax bracket are calculated and added together to get your overall federal tax liability. Fortunately, all this calculation effort is made simple with our income tax calculator available here on this website for you to use all year round.

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TurboTax Income Tax Calculator

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Federal IRS Electronic Tax Rates Calculator

United States Income Tax Rates History

Here in the United States, tax rates have changed dramatically over the past decades.

With our political system being governed by greed, there is no doubt our countries financial woes will continue to escalate.

Many decades ago, tax rates for top income earners were up to double what our highest tax rates are today. Fact is, big business runs our country with the full use of politician puppets under their control. Historical tax rates from 1913 forward.

History of Tax Rates From 1993 to 2018 - 2019

1993 - 00 2001 2002 2003 - 12 2013 - 17 2018
    10% 10% 10% 10%
15% 15% 15% 15% 15% 12%
28% 27.5% 27% 25% 25% 22%
31% 30.5% 30% 28% 28% 24%
36% 35.5% 35% 33% 33% 32%
39.6% 39.1% 38.6% 35% 35% 35%
        39.6% 37%

With that said, the best we can do for ourselves as American tax payers is stay on top of tax deductions to insure that we are not funding more of our poor political spending habits. After all, it's better to waste the money ourselves than to give it to our government to do the same.

Tax Rates And Our Progressive Tax System

Tax laws in the United States are based on a progressive taxing system. With this system you pay a percentage of your income, owing a higher percentage of taxes on higher portions of income, and contributing fewer tax dollars on lower portions of income when you make less money.

Theoretically, a progressive tax system distributes the tax burden more heavily onto those who make more money and thus have more ability to pay, and away from low income families and individuals who can’t afford as much.

Over time, tax deductions, credits, exemptions, and loopholes have modified and complicated our system to where the rich can in fact pay a lower percentage than the poor. But basically, the American income tax system uses a relatively simple series of stepped tax rates to determine how much you owe prior to deductions.

Marginal Federal Tax Rate

Your total federal income tax rate and tax amount owed is based on your adjusted gross income, or net income.

When your information is plugged into your tax preparation software program, it fills out your form 1040. Your entries supply the appropriate totals for all of the income you earned from various categories like investments, wages, alimony, unemployment, and business profits.

Now you can apply an assortment of deductions, such as charitable contributions, contributing to an IRA or paying student loan interest. Deductions help you to reduce your overall taxable income, ultimately this lowers the amount of taxes you pay Uncle Sam. You may also use the personal tax exemption for yourself as well as a dependent exemption for qualifying dependents to lower your tax burden even more.

Deciphering Marginal Tax Rates

Your income tax bracket tells you what federal tax rate your tax preparation software will prepare your taxes at.

Federal tax rates often vary by tax year and are typically different for each filing status. The rate of taxation is applied only to your taxable income.

You can determine your tax bracket and tax rate for several different years using the federal income tax rates calculator above by selecting tax year and filing status.

Tax rates describes the burden or ratio (generally calculated as a percentage of your income) for which an individual or business is taxed.

Your marginal tax rate is calculated by adding the tax rate tally for each portion of income falling into each tax bracket. Therefore it is an aggregate of all your income from each tax bracket.

There are several different methods that can be used to calculate federal tax rates, the methods below are referenced from the IRS website:

statutory, average, marginal, effective, effective average, and effective marginal.

Federal Tax Software Helps Lower Tax Rates

There is a definite advantage that can be gained from using top rated federal tax software program for your tax preparation. Squeezing the most out of your purchase can go a long way, and hopefully get you some tax deduction that push you back down into lower tax brackets for lower tax rates.

Pinching off taxable income for lower tax ratesTax season can tend to bring on stress for a lot of us, especially if you think you are going to have additional taxes due.

Choosing one of the best income tax software brands is the sure way to avoid frustration from poorly formatted tax programs that do little more than cause confusion and stress you out.

Consumer reports have shown that there are two online income tax software brands that have stayed on top of customer satisfaction surveys for decades. TurboTax the top selling brand along with H&R Block the second most popular brand. These income tax software brands continue to lead with intuitive formatting that keeps the general public using these programs year after year. Fact is, they are the best way to take advantage of lower tax rate opportunities that come from discovering tax breaks.

Use our tax rates calculator above to keep informed about your tax bill and what Uncle Sam is going to expect from you...