The IRS announces 2013 US individual tax rates

Highlights:

  • Individual marginal tax rates increase to 39.6% for certain taxpayers
  • Net investment income tax of 3.8% applies on certain investment income
  • The capital gains tax rates have a new 20% top rate. There are now three tiers of tax rates on capital gains and qualified dividends: 0%, 15%, and 20%. (Capital gains could also be subject to the new net investment income tax of 3.8%, making the top rate on long-term gains effectively 23.8% combined.)

If you would like advice regarding the implications of these changes on your affairs or indeed assistance with your returns please contact us.

Married Taxpayers Filing Jointly

If Taxable Income Is:The Tax is:
$0 – $17,85010% of the taxable income
$17,851 – $72,500$1,785 + 15% of the excess over $17,850
$72,501 – $146,400$9,982.50 + 25% of the excess over $72,500
$146,401 – $223,050$28,457.50 + 28% of the excess over $146,400
$223,051 – $398,350$49,919.50 + 33% of the excess over $223,050
$398,351 – $450,000$107,768.50 + 35% of the excess over $398,350
$450,001+$125,846 + 39.6% of the excess over $450,000

Head of Household

If Taxable Income Is:The Tax is:
$0 – $12,75010% of the taxable income
$12,751 – $48,600$1,275 + 15% of the excess over $12,750
$48,601 – $125,450$6,652.50 + 25% of the excess over $48,600
$125,451 – $203,150$25,865 + 28% of the excess over $125,450
$203,151 – $398,350$47,621 + 33% of the excess over $203,150
$398,351 – $425,000$112,037 + 35% of the excess over $398,350
$425,001+$121,364.50 + 39.6% of the excess over $425,000

Individual Taxpayers

If Taxable Income Is:The Tax is:
$0 – $8,92510% of the taxable income
$8,926 – $36,250$892.50 + 15% of the excess over $8,925
$36,251 – $87,850$4,991.25 + 25% of the excess over $36,250
$87,851 – $183,250$17,891.25 + 28% of the excess over $87,850
$183,251 – $398,350$44,603.25 + 33% of the excess over $183,250
$398,351 – $400,000$115,586.25 + 35% of the excess over $398,350
$400,001+$116,163.75 + 39.6% of the excess over $400,000

Married Taxpayers Filing Separate

If Taxable Income Is:The Tax is:
$0 – $8,92510% of the taxable income
$8,926 – $36,250$892.50 + 15% of the excess over $8,925
$36,251 – $73,200$4,991.25 + 25% of the excess over $36,250
$73,201 – $111,525$14,228.75 + 28% of the excess over $73,200
$111,526 – $199,175$24,959.75 + 33% of the excess over $111,525
$199,176 – $225,000$52,884.25 + 35% of the excess over $199,175
$225,001+$62,923 + 39.6% of the excess over $225,000