The IRS just announced its inflation adjustments for next tax year.
The Internal Revenue Service announced new inflation-adjusted income brackets for the 2016 tax year.
The top tax rate of 39.6% now applies to single taxpayers earning more than $415,050 ($466,950 for married taxpayers filing jointly)—up from the 2015 thresholds of $413,200 and $464,850, respectively.
Here are the other major adjustments:
If you’re single…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$9,275 | 10% of your taxable income |
| $9,275-$37,650 | $927.50 + 15% of anything over $9,275 |
| $37,650-$91,150 | $5,183.75 + 25% of anything over $37,650 |
| $91,150-$190,150 | $18,558.75 + 28% of anything over $91,150 |
| $190,150-$413,350 | $46,278.75 + 33% of anything over $190,150 |
| $413,350-$415,050 | $119,934.75 + 35% of anything over $413,350 |
| $415,050 and higher | $120,529.75 + 39.6% of anything over $415,050 |
If you’re married filing jointly or are a surviving spouse…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$18,550 | 10% of your taxable income |
| $18,550-$75,300 | $1,855 + 15% of anything over $18,550 |
| $75,300-$151,900 | $10,367.50 + 25% of anything over $75,300 |
| $151,900-$231,450 | $29,517.50 + 28% of anything over $151,900 |
| $231,450-$413,350 | $51,791.50 + 33% of anything over $231,450 |
| $413,350-$466,950 | $111,818.50 + 35% of anything over $413,350 |
| $466,950 and higher | $130,578.50 + 39.6% of anything over $466,950 |
If you’re a head of household…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$13,250 | 10% of your taxable income |
| $13,250-$50,400 | $1,325 + 15% of anything over $13,250 |
| $50,400-$130,150 | $6,897.50 + 25% of anything over $50,400 |
| $130,150-$210,800 | $26,835 + 28% of anything over $130,150 |
| $210,800-$413,350 | $49,417 + 33% of anything over $210,800 |
| $413,350-$441,000 | $116,258.50 + 35% of anything over $413,350 |
| $441,000 and higher | $125,936 + 39.6% of anything over $441,000 |