What might the 2014 tax rates and 2014 tax brackets look like?
Last year the fiscal cliff deal made the tax bracket structure permanent. The 2014 income tax brackets will continue to keep the 10%, 15%, 25%, 28%, 33%, 35% and 39.6% tax b...
What might the 2014 tax rates and 2014 tax brackets look like?
Last year the fiscal cliff deal made the tax bracket structure permanent. The 2014 income tax brackets will continue to keep the 10%, 15%, 25%, 28%, 33%, 35% and 39.6% tax brackets in place from last year.
Each year the federal income tax brackets will adjust based on inflation. However, based on the President’s budget proposal, we might be using the new chained CPI inflation adjustment instead. If we use chained CPI, the inflation calculation is projected to be lower, which will also lower the expansion of tax brackets each year.
While we won’t know the exact adjustments to the tax brackets, it’s nice to have a framework in place to project the tax impacts on your personal financial planning.
2014 Tax Rates & Tax Brackets
Based on the most recent release of inflation data (and adjusted slightly for the possible use of chained CPI), here’s what the 2014 tax brackets might look like. As soon as the IRS releases the final 2014 tax brackets, I’ll update the federal 2014 tax tables:
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Tax Rate
Single
Married Filing Joint
Married Filing Separate
Head of Household
10%
Up to $9,025
Up to $18,025
Up to $9,025
Up to $12,875
15%
$9,026 – $36,625
$18,026 – $73,225
$9,026 – $36,625
$12,876 – $49,075
25%
$36,626 – $88,725
$73,226 – $147,875
$36,626 – $73,925
$49,076 – $126,700
28%
$88,726 – $185,075
$147,876 – $225,275
$73,926 – $112,650
$126,701 – $205,175
33%
$185,076 – $402,325
$225,276 – $402,325
$112,651 – $201,175
$205,176 – $402,325
35%
$402,326 – $404,000
$402,326 – $454,500
$201,176 – $227,250
$402,326 – $429,250
39.6%
Over $404,000
Over $454,500
Over $227,250
Over $429,250
The 2014 federal tax tables are based on your filing status and number of dependents for the 2014 calendar year.
In addition, a new tax credit in 2014, the Health Insurance Premium Tax Credit will apply to your taxes based on your Modified Adjusted Gross Income.
2014 Tax Rates vs 2013 Tax Rates
Want to compare the projected 2014 tax brackets to the current year to see the changes?
Here are the 2013 tax rates for comparison.
2013 Tax Rates & Tax Brackets
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Tax Rate
Single
Married Filing Joint
Married Filing Separate
Head of Household
10%
Up to $8,925
Up to $17,850
Up to $8,925
Up to $12,750
15%
$8,926 – $36,250
$17,851 – $72,500
$8,926 – $36,250
$12,751 – $48,600
25%
$36,251 – $87,850
$72,501 – $146,400
$36,251 – $73,200
$48,601 – $125,450
28%
$87,851 – $183,250
$146,401 – $223,050
$73,201 – $