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Official 2014 IRS Tax Brackets (Marginal Tax Brackets)

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Tax BracketsEvery year the IRS has to adjust its income tax brackets to account for the slow and steady creep of inflation. Because official measures of inflation slowed to a crawl for much of 2013, the 2014 tax brackets look pretty similar to last year’s.

This year’s federal tax brackets reflect the results of a compromise deal to extend most of the Bush tax cuts that was enacted in January of 2013. While tax rates remained flat for most taxpayers, those earning more than $406,750 for single filers or $457,600 for married couples filing jointly will now find themselves in the highest tax bracket of 39.6 percent.

If you’re looking for the 2013 tax brackets, that is, the brackets that will be in effect when you file your taxes, you can find them at here.

2014 Official Tax Brackets

Tax Bracket Single Married Filing Jointly Head of Household
10% Bracket $0 – $9,075 $0 – $18,150 $0 – $12,950
15% Bracket $9,076 – $36,900 $18,151 – $73,800 $12,951 – $49,400
25% Bracket $36,901 – $89,350 $73,801 – $148,850 $49,401 – $127,550
28% Bracket $89,351 – $186,350 $148,851 – $226,850 $127,551 – $206,600
33% Bracket $186,2351 – $405,100 $226,851 – $405,100 $206,601 – $405,100
35% Bracket $405,101 – $406,750 $405,101 – $457,600 $405,101 – $432,200
39.6% Bracket $406,751+ $457,601+ $432,201+

Investment Tax Rates

The long-term capital gain tax rate is 10 percent for taxpayers in the 15 percent tax bracket and below, 15 percent for those in the 25 percent to 33 percent tax brackets, and 20 percent for those in the highest income tax bracket. Long term capital gains rates and dividend rates remain tied (dividends were set to increase to ordinary income rates).

Other notable tax changes

The personal exemption that taxpayers can deduct from their taxable income rose to $3,950, a $50 increase from the 2013 exemption of $3,900. As always, that exemption is subject to a phaseout, which will begin at adjusted gross incomes of $254,200, or $305,050 for married couples filing jointly, up from $250,000 and $300,000 last year, respectively. The exemption phases out completely at $376,700, or $427,550 for married couples filing jointly, up from $372,500 and $422,500 last year.

Tax bills for some same-sex couples rise

Thanks to a Supreme Court ruling that struck down a central part of the Defense of Marriage Act, married same-sex couples must now file as either married filing jointly or married filing separately. For gay couples where each partner makes approximately the same income, though, that equality comes at a cost — many will now have to pay the so-called “marriage penalty” that generally results in higher taxes for married folks than for singles.

Same-sex couples who would save money by doing so may want to take a look back at previous tax returns and file an amended return that reflects their married status.

(Photo: kozumel)

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31 Responses to “Official 2014 IRS Tax Brackets (Marginal Tax Brackets)”

  1. Christian L. says:

    Jim,
    Correct me if I’m wrong, but is the difference between Obama’s FY2013 and the Bush Era tax cuts just a higher tax bracket for the highest income? Thanks.

    -Christian L. @ Smart Military Money

  2. Jim says:

    You are correct, that’s the proposed difference.

  3. Daniel says:

    Seeing as how Obama has not had a single of his budgets passed during his time as President, I’m not sure that “experts” are really considering that option. ;)

    As I see it, the most likely scenario is the current law — that is, taxes go up bigtime for everyone on January 1. This is what will certainly happen if Obama wins reelection. This might also happen if Romney wins the presidency but Democrats maintain control of the Senate.

    The next most likely scenario is a continuation of the Bush tax cuts, or something similar. This is likely if Romney is elected and he finds himself with a cooperative Congress.

    • Me says:

      I bet you feel like an idiot now don’t you? Obama stayed and he kept our tax cuts. Now if your Romney was elected………

      • ME1 says:

        I bet you feel like an idiot know dont you. Did you notice you taxes went up even though you don’t make anywhere near 450,000 a year. I did.

  4. Ron says:

    What are the current and 2013 payroll tax rates and limits?

  5. Tony says:

    With the Bush policy ending what does that do for someone like me? I am married with a salary of $100k and own an investment property I am trying to unload where I stand to make a $150k profit. Does the new long term capital gain tax apply to me as well as the new medicare tax? Tony

  6. Daniel says:

    FYI, I found a calculator that lets you predict what the fiscal cliff tax rates will do to your net pay…

    http://www.yourmoneypage.com/campaign2012/c2012_fedwh1.php

  7. Jim says:

    What a “Crock” of “S” all of this is! I say let all of the Billionaires & Trillionaires pay for all of this stuff since they all “came out like bandits” with the Subprime Mortages and Financial Crash unlike the rest of us “regular” folks!

    • Anonymous says:

      It doesn’t work like that. Taxing the rich more only makes it harder on us “regular folks” I support a family of 3 on less than 45,000 a year with out state or federal funded health care or other government handouts. When you tax the rich they only pass the increased expenses to us. They have a right to be rich and they got rich because they worked hard at it and took risks. they are the ones that create jobs and make the economy go around. When your regulate them and restrict them more and more the lower pay and benefits and raise prices. The answer is get the government out of it.

      • Nostalgia says:

        Mr or Ms Anonymous are not a “regular folk.” A “regular folk” would not condone big business to continue to get big at the expense of the “regular folk.” Greed has ruined this country and has almost eliminated the middle class; you are either poor or rich. Why do you think so many jobs have left the US? I’ll tell you why; big business is all about “greed” and they don’t give a hoot about the “regular American folk.” If they did, jobs would never leave this country for cheap labor.

        • Anonymous says:

          Nostalgia,

          you are so wrong and probably know little about finances. It is not big business that sent jobs oversees, it is big government and all of the taxes and regulations that forced businesses to go over sees

        • mikr says:

          MR. Nostalgia
          Government has made it impossible to MFG in the US because of endless regulation. I would prefer to mfg here but it is cost prohibitive. Get government out of the way and see what happens. Keep doing the same thing and it will get worse. Big business is not the problem Gov’t is. They (Clinton) forced banks to lower there lending standards and that is were this whole economic nightmare started. Blame Clinton, Dodd & Frank!!!!! People that can’t afford homes should not have the rules changed for them so they can. Obama is trying again to make homes affordable for people that don’t qualifiy and we will see the same problem again. Thanks for Voting for Stupidity!!!!!

        • rensen says:

          Corruption and greed has ruined the country; Greed alone is a normal and somewhat good human quality to have until corruption sets in. We need to have some level of greed within us in order to prevent ourselves from becoming homeless, hungry, and/or dead at a middle or young age.

      • ryukidn says:

        Amen, Anonymous … Amen. The class warfare, race warfare, gender warfare, faith warfare, and any other kind of divisive tactics this bunch in DC can dream up are tearing us to shreds. It’s nearly impossible to have any honest discussion on our pressing issues b/c the gov’t with the treason media’s assistance is spreading propaganda and outright lies to people who don’t understand enough to know they’re being deceived so the gov’t can further erode our constitutional freedom. It’s divide & conquer, Saul Alinsky style … just evil.

      • Joe says:

        They got rich by screwing their employees and not paying them crap. Adding more and more work to them with no raise.

  8. Anonymous says:

    I think Ron is saying your current law rates are inaccurate.

  9. Michael says:

    The real crock is the fact that any of this exists like this at all. I personally think that in order for the tax rate to be fair for everyone there should only be one rate and it should not be any more than 10 percent. Keep in mind that would also require that everyone actually pay 10 percent of their taxable income. I am so sick and tired of everyone thinking that the super rich be taxed at such a high rate. That is complete bull. bottom line if you want to improve your financial status, get off your duff and put the work in. The current tax schedule actually offers no benifit to me to work more hours to bring in more money to pay down my student loans… I am a Registered Nurse with a Bachelor of Science in Nursing. I am Single and want to be able knock out my student loan debt really fast. I work a lot of overtime it will put me into a higher tax bracket and I will actually bring home less money than if I did not work as much and made less money… that is just really really stupid… I have absolutely no faith in president obama or our congress at pairing back the government as a whole so that a balanced budget could be achieved with the 10 percent rate.

    • Anonymous says:

      Michael – You are misunderstanding the tax brackets. You will only pay the higher rate on the income that falls withing that higher bracket… For instance if your AGI is $36,000 under the “current law” scenario you would only pay 28% on the last $500 of income, and you would still only pay 15% on the first $35,500

    • Don says:

      Michael,
      Have you checked into the Public Service Loan Forgiveness program for Student Loans?
      http://www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-is-the-public

      My daughter found out her job qualified.

      • Dave says:

        Slacker. She borrowed the money, she should pay it back.

        • anon says:

          Public service jobs very often pay less than private sector jobs, and as a result, they are hard to fill with qualified people. By having this program, a person gets to balance a lower wage against the loan forgiveness, thus probably netting approximately the same amount of money in/money out over time. Plus the gov’t gets to slow down the expensive job turnover rates they have due to their lower salaries. Normally as soon as someone in a public job gets enough experience to land a private one, they jump ship. This causes the gov’t to have to retrain again and again, and they lose the cumulative value of experience employees.

  10. Angie says:

    It’s interesting to note that the tax increase for the wealthy would amount to about 3%, but look at a married couple with income in the range of 60-71k, their increase is 13%!

  11. Bob says:

    Yeah Don, how pathetic! If your daughter borrowed money to go to school, she should pay it back and not be looking for forgiveness. But hey, if you’re okay with that too, then we know where she learned her pathetic ways!

  12. Jess says:

    Those of you who say that people should not be able to claim the public service forgiveness on their student loans obviously have no clue what you are talking about.
    First of all these “public servants” are your public school teachers, nurses, police force, firefighters, ect. most of whom make peanuts for what they do. The cost of their education is usually much higher than their gross income.
    Second of all, under the public service forgiveness, these people still have to make 5 to 10 years of on-time payments to qualify for forgiveness. This means they still are paying for a portion of the loan.
    My last thought on this is: these people do a great service for our community. Without them our children would be uneducated, crime would run rampant in the streets, and nobody would be there to extinguish the fire should your house ever be so unlucky. This government forgiveness of student loans to these people is no different than a private employer offering reimbursement for coursework related to the job. These people who perform these services deserve at least that much courtesy. //end rant// To those of you out there who perform these services that I mentioned and so many more that I didn’t (like our military personnel) I want to thank you for all that you do. At least some of us appreciate what you do for our communities and our country. //edited//

  13. Ralph says:

    Its worth it to shoot for an $87,000 salary this year if you make more than 36000. Its just a 3% increase as opposed to those who are getting hit with a 10% increase once they get 36k.

  14. Anonymous says:

    2013 Official Tax Brackets table above:
    Head of Household 10% bracket ends at 12,900 and 15% bracket starts at 12,750. One of them is wrong.

  15. Lost says:

    This is only the second year that I will be filing taxes and I am getting married December 21, 2013. My soon to be husband OWES money to fed and im scared that I’ll have my tax returns ripped from my hands and I cant have that happen to us there is to much relying on my tax returns. What do I do?

    • It happened to me says:

      Lost, this happened to me.

      You have a couple of options.

      You can file Married – Filing Seperately until he gets his tax situation fixed, or – You can file Married – Filing Joint and file an Injured Spouse Form to reclaim your portion of the taxes should Federal choose to keep the entire return to pay off his past debts.

  16. QUESTION says:

    QUESTION:
    if your in a tax bracket of 28% and paid over $13,000.00 in daycare, why cant you get full credit for childcare. I just did our taxes and I was told since we are in that bracket we don’t get full credit for childcare?

    I’m confused.

  17. Anonymous says:

    Hello! I am retired live in Florida receiving social security. I understand there is a tax bracket where for every 5 dollars earned (in addition to SS) 3 dollars is taxed. Is this true or somewhat true? and if so, what is the income bracket for this taxation? Is it based on the 2014 Tax Bracket?


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