Tax Rate Schedules
The tax rate schedules below are provided to help you determine your marginal tax bracket at both a federal and state level. Locate your taxable income in the appropriate tax filing (single, joint, etc.) to estimate which marginal tax bracket you are in.
It is important to know your marginal tax bracket to understand the tax consequences of additional income. For example, if you earn $120,000 from your job and have $20,000 of various deductions, your taxable income would be $100,000. As a single person living in California, you would be in the 28% tax bracket at the federal level and 9.55% at the state level, for a combined tax rate of 37.55%. That means that any additional income would be taxed at 37.55%.
Additional taxable income may come from interest from bank accounts and/or dividends and capital gains from taxable investments. In this scenario, if you earned an additional $5,000 in interest and dividends, your additional tax liability would be approximately $1,878 ($5,000 * 37.55%) leaving you really with $3,122. With this knowledge, a few questions arise:
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What is the rate difference what a taxable money market is paying and a tax-exempt money market?
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Does it make sense to invest in a tax-exempt money market fund for my savings?
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Is my investment strategy and the investments in my taxable account appropriate?
Tax efficient investing is important to not only reduce your current tax liabilities, but to manage your future tax liabilities as well. It also helps generate better after-tax returns.
Federal Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Indiana Iowa Kansas Kentucky Lousiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington Washington D.C. West Virginia Wisconsin Wyoming
Federal 2009 Tax Rates
Single | |||||
| Rate | Income between: | ||||
| 10% | $0 | $8,350 | |||
| 15% | $8,350 | $33,950 | |||
| 25% | $33,950 | $82,250 | |||
| 28% | $82,250 | $171,550 | |||
| 33% | $171,550 | $372,950 | |||
| 35% | $372,950 | ||||
Married Filing Jointly | |||||
| Rate | Income between: | ||||
| 10% | $0 | $16,700 | |||
| 15% | $16,700 | $67,900 | |||
| 25% | $67,900 | $137,050 | |||
| 28% | $137,050 | $208,850 | |||
| 33% | $208,850 | $372,950 | |||
| 35% | $372,950 | ||||
Married Filing Separately | |||||
| Rate | Income between: | ||||
| 10% | $0 | $8,350 | |||
| 15% | $8,350 | $33,950 | |||
| 25% | $33,950 | $68,525 | |||
| 28% | $68,525 | $104,425 | |||
| 33% | $104,425 | $186,475 | |||
| 35% | $186,475 | ||||
Head of Household | |||||
| Rate | Income between: | ||||
| 10% | $0 | $11,950 | |||
| 15% | $11,950 | $45,500 | |||
| 25% | $45,500 | $117,450 | |||
| 28% | $117,450 | $190,200 | |||
| 33% | $190,200 | $372,950 | |||
| 35% | $372,950 | ||||