Tax Rates and Their Impact On IRS Tax Brackets For 2014

Now that April 15th is behind us I’m sure you’re kicking back and breathing a sigh of relief that another tax season has ended. While it’s great to put the 2013 tax season behind you, a lot of you have made the wise choice to start planning for your 2014 taxes so you don’t get caught off guard next year.

I’ve already received several requests asking about the 2014 tax rates and how they impact each of the IRS tax brackets this year. This will most likely change (as it often does) between now and December 31st, but the following tables will give you guidance to help you plan for your 2014 taxes.

Be sure to note the changes to the personal deductions, mileage rates, and Texas franchise tax threshold.

Per Rev. Proc. 2013-35 (read the full text), the tax tables are as follows:

Married Filing Jointly

If Taxable Income Is:	The Tax Is:
Not over $18,150	10% of the taxable income
Over $18,150 but not over $73,800	$1,815 plus 15% of the excess over $18,150
Over $73,800 but not over $148,850	$10,162.50 plus 25% of the excess over $73,800
Over $148,850 but not over $226,850	$28,925 plus 28% of the excess over $148,850
Over $226,850 but not over $405,100	$50,765 plus 33% of the excess over $226,850
Over $405,100 but not over $457,600	$109,587.50 plus 35% of the excess over $405,100
Over $457,600	$127,962.50 plus 39.6% of the excess over $457,600

Individuals

If Taxable Income Is:	The Tax Is:
Not over $9,075	10% of the taxable income
Over $9,075 but not over $36,900	$907.50 plus 15% of the excess over $9,075
Over $36,900 but not over $89,350	$5,081.25 plus 25% of the excess over $36,900
Over $89,350 but not over $186,350	$18,193.75 plus 28% of the excess over $89,350
Over $186,350 but not over $405,100	$45,353.75 plus 33% of the excess over $186,350
Over $405,100 but not over $406,750	$117,541.25 plus 35% of the excess over $405,100
Over $406,750	$118,118.75 plus 39.6% of the excess over $406,750

Head of Households

If Taxable Income Is:	The Tax Is:
Not over $12,950	10% of the taxable income
Over $12,950 but not over $49,400	$1,295 plus 15% of the excess over $12,950
Over $49,400 but not over $127,550	$6,762.50 plus 25% of the excess over $49,400
Over $127,550 but not over $206,600	$26,300 plus 28% of the excess over $127,550
Over $206,600 but not over $405,100	$48,434 plus 33% of the excess over $206,600
Over $405,100 but not over $432,200	$113,939 plus 35% of the excess over $405,100
Over $432,200	$124,424 plus 39.6% of the excess over $432,200

Married Filing Separate

If Taxable Income Is:	The Tax Is:
Not over $9,075	10% of the taxable income
Over $9,075 but not over $36,900	$907.50 plus 15% of the excess over $9,075
Over $36,900 but not over $74,425	$5,081.25 plus 25% of the excess over $36,900
Over $74,425 but not over $113,425	$14,462.50 plus 28% of the excess over $74,425
Over $113,425 but not over $202,550	$25,382.50 plus 33% of the excess over $113,425
Over $202,550 but not over $228,800	$54,793.75 plus 35% of the excess over $202,550
Over $228,800	$63,981.25 plus 39.6% of the excess over $228,800

Standard Deduction & Personal Exemptions

The Standard Deduction and Personal Exemption have both increased slightly for 2014. The standard deduction is up to $6,200 for individuals, $12,400 for married filing jointly, and $9,100 for head of household. The personal exemption increased $50 to $3,950.