2019 Federal Tax Brackets: What They Mean For You

 2019 Federal Tax Brackets: What They Mean For You



Hello Rookies!


For those not familiar with tax brackets and marginalized tax rates please see Tax Bracket Blunder.


2019  Marginalized Tax Brackets

Tax Rate Single Married Filing Jointly
10% Up to $9,525 Up to $19,050
12% $9,526 to $38,700 $19,051 to $77,400
 22% 38,701 to $82,500 $77,401 to $165,000
24% $82,501 to $157,500 $165,001 to $315,000
32% $157,501 to $200,000 $315,001 to $400,000
35% $200,001 to $500,000 $400,001 to $600,000
37% over $500,000 over $600,000



Most notably is the percent of tax due per group of income.  For example: All money earned between 28,701 to 82,500 is taxed at 22%  - this is a decrease of about 3% from 2017




For simplicity lets look at a how single individual would be just federally taxed with no tax deductions:



TJ is a single male making $50,000 a year in income
TJs $50,000 will be broken up into groups
All money earned between $0 - $9,525 is group 1 
All money earned between $9,526 -$38,700 is group 2
All money earned between $38,701 - $50,000 is group 3
Group 1 will be taxed at 10%
Group 2 will be taxed tax at 12%
Group 3 will be taxed at 22% 


Group 1 is taxed at 10% totaling $952.50  owed
(9,525 x 0.10)
Group 2 is taxed at 12% totaling $3,500.88 owed
(there is $29,174 in group 2: 29,174 x 0.12 = 3,500) 


Group 3 is taxed at 22% totaling $2,485.78
(there is $11,299 in group 3: 11,299 x 0.22 = 2,485.78)

Total up all three groups = $6,939.16 is expected to be owed in federal income tax
(deductions left out)

Compare this to TJs 2017 tax file when an estimated $8,238.75 was expected to be owed under a similar scenario.  

That is good news for TJ he should expect to make at least $1,299.59 more this year due to less taxes owed before any deductions (which will make his tax savings even higher)

Understanding your federal tax rate ahead of time can help you decide on future tax deductions plans, savings accounts, and avoid surprise bills

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