The U.S. income tax table for 2023 looks like this:
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| Tax Rate | Single | Married filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $11,000 | $0 to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $346,876 or more | $578,101 or more |
Some people have a misconception about the tax system. If one person is single and makes $44,725 and another single person makes $44,726, the first person does not pay 12% and the second person does not pay 22%. Instead, the first $11,000 is taxed at the 10% rate. Any dollar made over $11,000 (but under $44,725) gets taxed at the 12% rate.
1.
A married couple filing jointly made $\(200,000\) (after adjustments and
deductions) in 2023. How much should they expect to pay in income
tax?
We use the column titled "Married filing jointly". The first $22,000 they made in 2023 is taxed at 10%. We calculate 10% of $22,000 by multiplying by the decimal form of the percentage.
Tax on the first $22,000: \(0.10 \cdot \$22,000 = \$2,200\)
The table tells us that they are taxed 12% for any dollar made between $22,001 and $89,450. As this couple has made $\(200,000\), they have made every dollar in income between these two numbers.
Income between $\(22,001\) and $\(89,450\) is taxed at 12%:
\(0.12 \cdot (\$89,450 - \$22,001) =\)
\(0.12 \cdot \$67,449 =\)
\(\$8,093.88\)
This will be added to the $\(2,200\) in taxes for the first $\(22,000\). We continue in this fashion until we have paid tax on all $\(200,000\) earned in income.
The next step in the tax table is 22% tax on dollars made between $\(89,451\) and $\(190,750\). The couple made $\(200,000\), so they pay tax on every dollar between these two numbers.
\(0.22 \cdot (\$190,750 - \$89,451) =\)
\(0.22 \cdot \$101,299 =\)
\(\$22,285.78\)
Finally, they will be taxed \(24\)% on every dollar between $\(190,751\) and $\(200,000\).
\(0.24 \cdot (\$200,000 - \$190,751) =\)
\(0.24 \cdot \$9,249 =\)
\(\$2,219.76\)
Adding them together, this married couple’s total income tax is
\[\$2,200 + \$8,093.88 + \$22,285.78 + \$2,219.76 = \$34,799.42\]
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| Tax Rate | Single | Married filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $11,000 | $0 to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $346,876 or more | $578,101 or more |
1. A person who files as head of household made $\(80,000\) (after adjustments and deductions) in 2023. How much should they expect to pay in income tax?
2. A person who files as single made $\(100,000\) (after adjustments and deductions) in 2023. How much should they expect to pay in income tax?
1. What can reduce a person’s taxes?
2. Some have argued that America should have a flat tax. A flat tax would mean everyone pays the same percentage tax on their income, regardless of how high or low their income is. Do you think a flat tax would be a better tax system? Why or why not?
3. When did the tax table first begin development in our country?