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1 Kyle Pomerleau, 2016 Tax Brackets 1 (2015)

handle is hein.taxfoundation/sixtbk0001 and id is 1 raw text is: TAXS FOUNDATION FISCAL FACT Oct. 2015 No. 486 The Tax Foundation is a 501(c)(3) non-partisan, non-profit research institution founded in 1937 to educate the public on tax policy. Based in Washington, D.C., our economic and policy analysis is guided by the principles of sound tax policy: simplicity, neutrality, transparency, and stability. ©2015 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Melodie Bowler Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org 2016 Tax Brackets By Kyle Pomerleau Economist Introduction Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called bracket creep. This is the phenomenon by which people are pushed into higher income tax brackets or have reduced value from credits or deductions due to inflation, instead of any increase in real income. The IRS uses the Consumer Price Index (CPI) to calculate the past year's inflation and adjusts income thresholds, deduction amounts, and credit values accordingly. Rather than directly adjusting last year's values for annual inflation, each provision is adjusted from a specified base year. For more information, see Methodology, below. Estimated Income Tax Brackets and Rates In 2016, the income limits for all brackets and all filers will be adjusted for inflation and will be as follows (Table 1). The top marginal income tax rate of 39.6 percent will hit taxpayers with adjusted gross income of $415,050 and higher for single filers and $466,950 and higher for married filers. Table 1. 2016 Taxable Income Brackets and Rates (Estimate) Rate Single Filers Married Joint Filers 10% $0 to $9.275 $0 to $18,550 15% $9.275 to $37.650 $18.550 to $75.300 25% $37.650 to $91.150 $75.300 to $151.900 28% $91.150 to $190.150 $151.900 to $231.450 33% $190.150 to $413.350 $231.450 to $413,350 35% $413.350 to $415.050 $413.350 to $466.950 39.6% $415,050+ $466,950+ Source: Author's Calculations. Head of Household Filers $0 to $13.250 $13.250 to $50.400 $50.400 to $130,150 $130.150 to $210.800 $210.800 to $413,350 $413.350 to $441.000 $441.000+

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