The new tax rates

 

With the deal reached by congress on the fiscal cliff, comes a new tax bracket. We do not have to worry ourselves with any sudden changes when filling our 2012 tax returns, but we might be noticing a slight change in our paychecks. In fact, the new changes will take effect on the income earn in 2013. The Bush-era tax cuts have been made permanent for individuals earning $400,000 or less and $450,000 or less for married people. Those making above 400,000 for individual and 450,000 for married, will be facing a slight increase in their taxes.

Below is a table highlighting the rates:

Rate	Single Filers	Married Joint Filers	Head of Household Filers
10%	$0 to $8,925	$0 to $17,850	$0 to $12,750
15%	$8,925 to $36,250	$17,850 to $72,500	$12,750 to $48,600
25%	$36,250 to $87,850	$72,500 to $146,400	$48,600 to $125,450
28%	$87,850 to $183,250	$146,400 to $223,050	$125,450 to $203,150
33%	$183,250 to $398,350	$223,050 to $398,350	$203,150 to $398,350
39.6%	$400,000 and up	$450,000 and up	$425,000 and up

The numbers are for marginal rates, it is always better to contact your tax advisor for your specific case.