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2016 Tax Rates and Standard Deduction

Posted by on January 27, 2016
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2016 Tax Rates and Standard Deduction

Time to reflect on the new 2016 tax rates.

Once the new year comes around, we tend to reevaluate ourselves and reflect on our accomplishments (and setbacks) from the past year. This is also a time when we think about how we can better ourselves for the year to come. For many of us, that means following through with a career move, proposing to that special someone, having a baby, or buying a new house.

All of these life events come with a price tag that are likely to affect your tax situation. You’ll want to take a look at the following tables as a reference to adjust your W-4 withholdings accordingly. Look at it as one more save-the-date or housewarming invite you need to send out to share the good news!

 

2016 Standard Deduction Amounts

If your Filing Status is: Your Standard Deduction is:
Single$6,300
Married Filing Jointly$12,600
Married Filing Separately$6,300
Head of Household$9,300
Surviving Spouse$12,600

 

Tax Rates for Single Taxpayers

If Taxable Income is Between:Tax Due is:
$0 and $9,27510% of taxable income
$9,276 and $37,650$927.50+15% of amount over $9,275
$37,651 and $91,150 $5,183.75+25% of amount over $37,650
$91,151 and $190,150$18,558.75+28% of amount over $91,150
$190,151 and $413,350$46,278.75+33% of amount over $190,150
$413,351 and $415,050$119,934.75+35% of amount over $413,350
$415,051 and up$120,529.75+39.6% of amount over $415,050

 

Tax Rates for Married Taxpayers Filing Jointly

If Taxable Income is Between:Tax Due is:
0 and $18,550 10% of taxable income
$18,551 and $75,300$1,855+15% of amount over $18,550
$75,301 and $151,900$10,367.50+25% of amount over $75,300
$151,901 and $231,450$29,517.50+28% of amount over $151,900
$231,451 and $413,350$51,791.50+33% of amount over $231,450
$413,351 and $466,950$111,818.50+35% of amount over $413,350
$466,950 and up$130,578.50+39.6% of amount over $466,950

 

Tax Rates for Married Taxpayers Filing Separately

If Taxable Income is Between:Tax Due is:
$0 and $9,27510% of taxable income
$9,276 and $37,650$927.50+15% of amount over $9,275
$37,651 and $75,950$5,183.75+25% of amount over $37,650
$75,951 and $115,725$14,758.75+28% of amount over $75,950
$115,726 and $206,675$25,895.75+33% of amount over $115,725
$206,676 and $233,475$55,909.25+39.6% of amount over $233,475

 

Tax Rates for Head of Household Filers

If Taxable Income is Between:Tax Due is:
$0 and $13,25010% of taxable income
$13,251 and $50,400$1,325+15% of amount over $13,250
$50,401 and $130,150$6,897.50+25% of amount over $50,400
$130,151 and $210,800$26,835+28% of amount over $130,150
$210,801 and $413,350$49,417+33% of amount over $210,800
$413,351 and $441,000$116,258.50+35% of amount over $413,350
$441,001 and up$125,936+39.6% of amount over $441,000

 

Know Your Place in the Tax World.

This is a lot of information to absorb and no one is expecting you to memorize it…trust me. If you are confused about which category you fall into or you have any other tax questions, feel free to give our tax team a call. We can help you determine where exactly you fall within the great big world of tax rates.

 

Happy reflecting!

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