Tax Rates

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2016 Tax Rates

Single Taxpayers

The Standard Deduction is $6,300.

$0 to $9,275 10%
$9,275 to $37,650 15%
$37,650 to $91,150 25%
$91,150 to $190,150 28%
$190,150 to $413,350 33%
$413,350 to $415,050 35%
Over $415,050 39.6%

Married Jointly & Surviving Spouses

The standard deduction is $12,600.

$0 to $18,550 10%
$18,550 to $75,300 15%
$75,300 to $151,900 25%
$151,900 to $231,450 28%
$231,450 to $413,350 33%
$413,350 to $466,950 35%
Over $466,950 39.6%

Married Filing Separately

The standard deduction is $6,300.

$0 to $9,275 10%
$9,275 to $37,650 15%
$37,650 to $75,950 25%
$75,950 to $115,725 28%
$115,725 to $206,675 33%
$206,675 to $233,475 35%
Over $233,475 39.6%

Head of Household

The standard deduction is $9,300.

$0 to $13,250 10%
$13,250 to $50,400 15%
$50,400 to $130,150 25%
$130,150 to $210,800 28%
$210,800 to $413,350 33%
$413,350 to $441,000 35%
Over $441,000 39.6%

Estates & Trusts

$0 to $2,550 15%
$2,550 to $5,950 25%
$5,950 to $9,050 28%
$9,050 to $12,400 33%
Over $12,400 39.6%

Special Rates, Credits and Deductions

Social Security

Social Security Tax Rate: Employers 6.2%
Social Security Tax Rate: Employees 6.2%
Social Security Tax Rate: Self-Employed 12.4%
Maximum Taxable Earnings $118,500
Medicare Base Salary Unlimited
Medicare Tax Rate 1.45%
Additional Medicare Tax for income above
$200,000 (single filers) or $250,000 (joint filers)
0.9%
Medicare tax on net investment income
($200,000 single filers, $250,000 joint filers)
3.8%

Education

American Opportunity Credit (Hope) $2,500
Lifetime Learning Credit $2,000
Student Loan Interest Deduction $2,500
Coverdell Education Savings Contribution $2,000

Miscellaneous

Personal Exemption $4,050
Business expensing limit: Cap on equipment purchases $2,000,000
Business expensing limit: New and Used Equipment and Software $500,000
Prior-year safe harbor for estimated taxes of higher-income 110% of your 2016 tax liability
Standard mileage rate for business driving 54 cents
Standard mileage rate for medical/moving driving 19 cents
Standard mileage rate for charitable driving 14 cents
Child Tax Credit $1,000
Unearned income maximum for children under 19 before kiddie tax applies $1,050
Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket 0%
Maximum capital gains tax rate for taxpayers above the 15% bracket but below the 39.6% bracket 15%
Maximum capital gains tax rate for taxpayers in the 39.6% bracket 20%
Capital gains tax rate for unrecaptured Sec. 1250 gains 25%
Capital gains tax rate on collectibles 28%
Maximum contribution for Traditional/Roth IRA $5,500 if under age 50
$6,500 if 50 or older
Maximum employee contribution to SIMPLE IRA $12,500 if under age 50
$15,500 if 50 or older
Maximum Contribution to SEP IRA 25% of eligible compensation up to $53,000
401(k) maximum employee contribution limit $18,000 if under age 50
$24,000 if 50 or older
Estate tax exemption $5,450,000
Annual Exclusion for Gifts $14,000