Herbert & Company - Certified General Accountant


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How Tax Brackets Work:

Personal tax rates are approximately as follows:

Taxable Income Tax Rate

  • $0 to $46,605
  • $46,606 to $93,208
  • $93,209 to $128,145
  • $128,146 to $144,489
  • $144,490 to $153,773
  • $153,774 to $205,031
  • $205,032 to $205,842
  • $205,843 to $307,547
  • $307,548 and above

25% (about 17% after personal exemption)

30.5%

36%

38%

41%

42%

43%

47%

48%


It is important to realize that if your taxable income is one dollar into the next tax bracket, it is only that dollar that is taxed at the higher rate.

Example: Taxable income $100,000

  • First $46,605 taxed at approximately 17% after personal exemption
  • Next $46,603 taxed at approximately 30.5%
  • Remaining $6,792 taxed at approximately 36%

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