No the federal tax brackets would NOT be your average income tax rate on your income.
Each separate federal tax bracket amount is your marginal tax rate for that amount of your taxable income that is in that bracket amount.
What ever your marginal rate will after you have completed you income tax return correctly. Could be any where from the -0- % to the maximum 35% tax bracket amount.
The rate for a federal income tax will vary based on one's income bracket. One can find more information about the 2013 tax year at the official IRS website.
To find the federal tax rate at which the buyer would be indifferent between Muni bonds(which are tax free) and Corporate bonds(which fall under your tax bracket tax rate) you follow this simple formula: Corporate Bond Yield=(Municipal bond Yield)/(1- Federal tax rate) In this case you would solve for the Federal Tax Rate and get an answer of .25 or 25% http://luhman.org/Nts/Bond/140_Municipals.html
Federal Tax Rate Table based on income
The maximum tax bracket or schedule amount would be at 35%. Go to the IRS.gov web site and use the search box for 2009 federal tax rate schedules go to page 13 Click on the below Related Link
For the tax year 2010 at this time July 22 2010 8:25 pm the federal income tax rate from the 1040 federal income tax return THE TAXABLE INCOME from page 2 line 43 starts at 10% and goes to the maximum tax bracket amount of 35 %.Go to the IRS gov website and use the search box for 1040ES go to page 8The 2009 federal tax rate schedules can be found in the 2009 Form 1040ES instructions, in the Related Link below.
Whatever tax bracket your salary fits into.
Marginal Tax Rate Calculator Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This calculator helps you estimate your average tax rate, your current tax bracket, and your marginal tax rate for the 2010 tax year. Please note that this calculator uses the 2010 preliminary tax tables subject to change by the IRS.
Depending on your tax bracket, 1.6 percent to 7.8 percent.
Average is the total amount of tax divided by the total amount of income...it therefore includes all deductions and tax brackets, usually lower % ones, getting to the total as part of it...average. The marginal, is on the NEXT $ of income. So it basically is going to be closer (or exactly) the highest tax rate you pay, being applicable to the last bracket your in, and generally having already used up all dedcutions available, and in fact, maybe losing some because some dedcutions drop off above certain incomes. Clear as mud? Marginal rate...the amount of tax pid on the NEXT $ of income...average rate includes the lower brackets and he tax, or no tax, on the first amounts of income.
The federal marginal income tax rate bracket amounts would be from the 25% to the maximum 35% amount for income over 100000 in the year 2009.
Zero -0- Then 10% would be the next one for the 2009 tax year. Go the IRS.gov website and use the search box for 2009 1040ES go to page 6 for the TAX RATE SCHEDULES for each different filing STATUS and the amounts for each MARGINAL TAX RATE bracket.