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2016 Tax Rate Tables

For tax years beginning in 2016, the tax rate tables are as follows:


Married Joint Filers/Surviving Spouses

  • Not over $18,550 10% of the taxable income
  • Over $18,550 but not over $75,300 $1,855 plus 15% of the excess over $18,550
  • Over $75,301 but not over $151,900 $10,367.50 plus 25% of the excess over $75,300
  • Over $151,900 but not over $231,450 $29,517.50 plus 28% of the excess over $151,900
  • Over $231,450 but not over $413,350 $51,791.50 plus 33% of the excess over $231,450
  • Over $413,350 but not over $466,950 $111,818.50 plus 35% of the excess over $413,350
  • Over $466,951 $130,578.50 plus 39.6% of the excess over $466,950


Heads of Households

  • Not over $13,250 10% of the taxable income
  • Over $13,250 but not over $50,400 $1,325 plus 15% of the excess over $13,250
  • Over $50,400 but not over $130,150 $6,897.50 plus 25% of the excess over $50,400
  • Over $130,150 but not over $210,800 $26,835 plus 28% of the excess over $130,150
  • Over $210,800 but not over $413,350 $49,417 plus 33% of the excess over $210,800
  • Over $413,350 not over $441,000 $116,258.50 plus 35% of the excess over $413,350
  • Over $441,000 $125,936 plus 39.6% of the excess over $441,000


Unmarried individuals (other than surviving spouses or heads of household)

  • Not over $9,275 10% of the taxable income
  • Over $9,275 but not over $37,650 $927.50 plus 15% of the excess over $9,275
  • Over $37,650 but not over $91,150 $5,183.75 plus 25% of the excess over $37,650
  • Over $91,150 but not over $190,150 $18,558.75 plus 28% of the excess over $91,150
  • Over $190,150 but not over $413,350 $46,278.75 plus 33% of the excess over $190,150
  • Over $413,350 not over $415,050 $119,934.75 plus 35% of the excess over $413,350
  • Over $415,050 $120,529.75 plus 39.6% of the excess over $415,050


Married Individuals Filing Separately

  • Not over $9,275 10% of the taxable income
  • Over $9,275 but not over $37,650 $927.50 plus 15% of the excess over $9,275
  • Over $37,650 but not over $75,950 $5,183.75 plus 25% of the excess over $37,650
  • Over $75,950 but not over $115,725 $14,758.75 plus 28% of the excess over $75,950
  • Over $115,725 but not over $206,675 $25,895.75 plus 33% of the excess over $115,725
  • Over $206,675 not over $233,475 $55,909.25 plus 35% of the excess over $206,675
  • Over $233,476 $65,289.25 plus 39.6% of the excess over $233,475


Personal Exemption

For 2016, the personal exemption amount is $4,050.

Phaseout. For taxable years beginning in 2016, the personal exemption phases out for taxpayers with the following adjusted gross income amounts:

  • Filing Status AGI - Beginning of Phaseout AGI - Completed Phaseout
  • Married Individuals Filing Joint Returns $311,300 $433,800
  • Heads of Households  $285,350 $407,850
  • Unmarried Individuals  $259,400 $381,900
  • Married Individuals Filing Separate Returns $155,650 $216,900

 

Education

AOTC. The 2012 Taxpayer Relief Act extended the American Opportunity Tax Credit. The AOTC begins to phase out for single taxpayers with MAGI above $80,000 ($160,000 for joint filers).


Lifetime Learning Credit. A taxpayer’s MAGI above $55,000 ($110,000 for joint filers) is used to determine the reduction of a Lifetime Learning Credit amount.


Student loan interest. For taxable years beginning in 2015, the $2,500 maximum deduction for interest paid on qualified education loans under §221 begins to phase out under §221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $65,000 ($130,000 for joint returns), and is completely phased out for taxpayers with modified adjusted gross income of $80,000 or more ($160,000 or more for joint returns).

 

Other

Standard deductions in 2016 are $12,600 for married joint filers and $6,300 for single filers and married separate filers. For heads of household, the standard deduction will be $9,300.

Kiddie tax. For purposes of determining whether a child's unearned income is taxed at the parent's tax rate under Code Sec. 1(g), the amount by which the child’s net unearned income escapes the kiddie tax is $1,050. 


Estate and gift tax. The gift tax annual exemption will remain the same for 2016, at $14,000. However, the estate and gift tax applicable exclusion is increased to $5,450,000.