How much do you get taxed per dollar in US?

Answer 1

For income taxes, this depends on your income as well as any deductions and credits you may qualify for. It also depends on if you have to pay the alternative minimum tax or not. It also depends on which tax year you are talking about. In 2009 for example, If you assume that after all deductions and you are single you will pay the following:

10% on the first $8,350

15% on $8,351- 33,950

25% on $33,951- 82,250

28% on $82,251- 171,550

33% on $171,551- 372,950

35% on over $372,950

The tricky part here is that your first $8,350 is taxed at 10% even if you make $400,000. For example, if you make $40,000 you will pay 25% on $6,050, 15% on $25,600 and 10% on $8,350. This totals $1,512.50+$3,840+$835 = $6187.50. Also keep in mind that someone in the $40,000 range for taxable income actually makes alot more than that amount because the deductions are not taxed. In addition many people have some credits that are able to be applied that bring down the tax for example, they made an energy improvement on their home.

These taxes are only for federal taxes. There are also often state and local income taxes. There are also sales taxes whose rules vary by state and locality as well as property taxes if you own your home. If you live in a state where you must pay tolls, these too are really a tax that you are paying for use of the road.

If you are interested in the tax brackets for married people filing Jointly, Heads of Household and Married filing separatly, you can consult the IRS or view the table at http://www.dinkytown.net/java/TaxMargin.html