Tax rates schedule 2008

Tax brackets were changed for the tax year 2008 to reflect the rate of inflation in the US economy. When comparing the tax rate schedule for 2007 and 2008, we can see that only the tax brackets have changed. The tax rates themselves remained the same.

Below you can find listing of marginal tax rates for 2008. These rates apply to your income earned in the year 2008, and are effective for the tax return that you file in 2009.

We can observe that tax rates progressively increase as income increases. This reflects the principle of social redistribution. The government promotes the idea that wealthier people should pay higher taxes than those less fortunate.

The rates shown below apply to taxable income. Remember that gross income is adjusted for deductions and exemptions which lower the basis that is used as the taxable income figure. Taxable income is almost always less than your total income.

Note: Depending on the source of income and length of ownership, some capital gains are taxed at different tax rates than the ones you see below. See the Capital gains tax rate page for more details.

Before you get to calculating your effective marginal tax rate using our tax calculator below, you might be interested in reading a few tax tips:

10 tips last-minute checklist for error-free tax return
Marginal tax rate: How can I lower my taxes?
Address change - how to notify IRS

If you have any questions about taxes, feel free to ask in our taxes discussion forum. And now, let's get to some tax math.

Interactive Tax Calculator

Enter your taxable income in the yellow field bellow and click the button to see how much taxes you owe to the government.

This interactive tax calculator as well as the tax rate schedules provided below are provided for tax planning purposes only. Never use this or any other private website to calculate your final tax.

Please, always refer to IRS published instructions for Form 1040, 1040A, or 1040EZ to work with the official IRS authored tables.

Filing status: SINGLE

Use this schedule to figure out your tax if you are filing as single.

• 10% on income between $0 and $8,025
• 15% on the income between $8,025 and $32,550; plus $802.50
• 25% on the income between $32,550 and $78,850; plus $4,481.25
• 28% on the income between $78,850 and $164,550; plus $16,056.25
• 33% on the income between $164,550 and $357,700; plus $40,052.25
• 35% on the income over $357,700; plus $103,791.75

(Tax Rate Schedule X)

Filing status: MARRIED FILING JOINTLY

Use this schedule to figure out your tax if you are filing as married filing jointly.

• 10% on the income between $0 and $16,050
• 15% on the income between $16,050 and $65,100; plus $1,605.00
• 25% on the income between $65,100 and $131,450; plus $8,962.50
• 28% on the income between $131,450 and $200,300; plus $25,550.00
• 33% on the income between $200,300 and $357,700; plus $44,828.00
• 35% on the income over $357,700; plus $96,770.00

(Tax Rate Schedule Y-1)

Filing status: MARRIED FILING SEPARATELY

Use this schedule to figure out your tax if you are filing as married filing separately.

• 10% on the income between $0 and $8,025
• 15% on the income between $8,025 and $32,550; plus $802.50
• 25% on the income between $32,550 and $65,725; plus $4,481.25
• 28% on the income between $65,725 and $100,150; plus $12,775.00
• 33% on the income between $100,150 and $178,850; plus $22,414.00
• 35% on the income over $178,850; plus $48,385.00

(Tax Rate Schedule Y-2)

Filing status: HEAD OF HOUSEHOLD

Use this schedule to figure out your tax if you are filing as head of household.

• 10% on the income between $0 and $11,450
• 15% on the income between $11,450 and $43,650; plus $1,145.00
• 25% on the income between $43,650 and $112,650; plus $5,975.00
• 28% on the income between $112,650 and $182,400; plus $23,225.00
• 33% on the income between $182,400 and $357,700; plus $42,755.00
• 35% on the income over $357,700; plus $100,604.00

(Tax Rate Schedule Z)

How do I use these schedules to calculate my tax?

You can either use the interactive tax calculator above, or if you want to see the tax applicable to each individual tax bracket, you can see the Tax rates schedule 2007 page. There is an EXAMPLE at the bottom. See the Example of tax calculation section.

How marginal tax rates are used?

You can use the tax rates provided above to figure out how much tax you will pay on every additional dollar of income you earn.

For example, if you are single and your taxable income is $70,000, you fall into the 25% tax bracket (that is your marginal tax rate bracket). All your extra income will be taxed at that rate until you reach the next tax bracket (28%).

You can also use these tax schedules to figure how much your deductions will save on your taxes. If you are in the 25% tax bracket, you will save 25 cents in federal taxes for every dollar if your deductions (for example mortgage interest, business expenses, and others, charitable donations).

Tax rates schedule for 2009

See the Tax rates schedule 2009 page.

Tax rates schedule for 2007

See the Tax rates schedule 2007 page.

More information

You might be interested in our other articles

10 tips last-minute checklist for error-free tax return
Marginal tax rate: How can I lower my taxes?
Capital gains tax rates
Marginal and average tax rate

If you have any questions, you can submit them to our taxes discussion forum. There are many answers in our taxes discussion forum.

Also feel free to find more information here: