2011 Federal Income Tax Brackets and Tax Rates

January 17, 2012

Taxes are due April 18, 2012. While taxes aren’t fun, they are one of the few things that everyone has to put on their financial to-do list each year. To help you prepare your taxes in 2012, here is a listing of the federal income tax brackets and marginal tax rates for 2011:

Single

If Taxable Income Is:The Tax Is:
Not over $8,50010% of the taxable income
Over $8,500 but not over $34,500$850 plus 15% of the excess over $8,500
Over $34,500 but not over $83,600$4,750 plus 25% of the excess over $34,500
Over $83,600 but not over $174,400$17,025 plus 28% of the excess over $83,600
Over $174,400 but not over $379,150$42,449 plus 33% of the excess over $174,400
Over $379,150$110,016.50 plus 35% of the excess over $379,150
STANDARD DEDUCTION$5,800

Head of Household

If Taxable Income Is:The Tax Is:
Not over $12,15010% of the taxable income
Over $12,150 but not over $46,250$1,215 plus 15% of the excess over $12,150
Over $46,250 but not over $119,400$6,330 plus 25% of the excess over $46,250
Over $119,400 but not over $193,350$24,617.50 plus 28% of the excess over $119,400
Over $193,350 but not over $379,150$45,323.50 plus 33% of the excess over $193,350
Over $379,150$106,637.50 plus 35% of the excess over $379,150
STANDARD DEDUCTION$8,500

Married Filing Jointly

If Taxable Income Is:The Tax Is:
Not over $17,00010% of the taxable income
Over $17,000 but not over $69,000$1,700 plus 15% of the excess over $17,000
Over $69,000 but not over $139,350$9,500 plus 25% of the excess over $69,000
Over $139,350 but not over $212,300$27,087.50 plus 28% of the excess over $139,350
Over $212,300 but not over $379,150$47,513.50 plus 33% of the excess over $212,300
Over $379,150$102,574 plus 35% of the excess over $379,150
STANDARD DEDUCTION$11,600

Married Filing Separately

If Taxable Income Is:The Tax Is:
Not over $8,50010% of the taxable income
Over $8,500 but not over $34,500$850 plus 15% of the excess over $8,500
Over $34,500 but not over $69,675$4,750 plus 25% of the excess over $34,500
Over $69,675 but not over $106,150$13,543.75 plus 28% of the excess over $69,675
Over $106,150 but not over $189,575$23,756.75 plus 33% of the excess over $106,150
Over $189,575$51,287 plus 35% of the excess over $189,575
STANDARD DEDUCTION$5,800

2011 Standard Deductions

Tax exemptions increased as follows: personal exemptions are now $3,700. For single taxpayers and married taxpayers filing separately, it’s at $5,800. For married taxpayers filing jointly or qualifying widow/widower, it’s $11,600. For heads of household, it’s $8,500.

Provisions of The Tax Relief & Job Creation Act of 2010

Because of the December 17, 2010 signing of The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, there are a few adjustments in the tax code you should know. Here are some of the noteworthy changes:

  • Taxes on capital gains and dividends will hold steady for 2011 and 2012, at 15%. There was the possibility it would increase to 20%, but this did not happen.
  • Foreign account holders need to make sure they are compliant or face stiff penalties.
  • Some changes on the estate tax front for the heirs of those who died in 2010: either choose to get taxed according to special capital gains tax rates, or take an exemption of up to $5 million, with assets above that taxed at a maximum of 35%.
  • Social security payroll tax will be shaved by 2% (from 6.2% to 4.2%) for the first $106,800.
  • The child tax credit for low income taxpayers is increased from $500 to $1,000 maximum, until Dec. 31, 2012.
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