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Show HN: Tax Bracket Explorer
- observer987 6y agoThe US tax rate is progressive. So, if your salary is $100K, then you would be taxed not at the 24% rate on the entire $100k, but rather in progressive steps: e.g. for $100K 10% on 9,875 (987.5) 12% on $40,125 - $9,875 (i.e. 12% of 30,250 -> 4,235) 22% on $85,525 - $40,125 (i.e. 22% of 45,400 -> 9,988) 24% on $100,000 - $85,525 (e.e 24% of 14,475 -> 3,474) This example did not account for the standard deduction of $12,000. So, your taxable income would be reduced by that amount. so the tax you owe (without accounting for deductions) would be closer to $18,684.50). This excludes FICA which is going to be an additional 7.65% on the example $100k as well as any state and local taxes.
- fennokin 6y agoThis example is wrong since the US tax system is graduated. The tax rate for salary bands only apply to that salary band and not your entire salary.