A tax rate is the percentage at which someone is taxed. Federal income tax rates are progressive, meaning that as someone’s taxable income increases, their tax rate also increases.
How is someone’s tax rate determined?
A tax rate is applied to a taxpayer based on their
A person’s filing status depends on a number of factors, including marital status as of December 31, the last day of the tax year.
A person's income level will determine their "taxable income bracket." That's the range of income dollars their income falls in. Each range has a different tax rate.
What are the different tax rates, and who sets them?
The federal government has defined 7 tax rates for taxpayers that increase as income increases. The rates range from 10% to 37%. The rate each person gets depends on their tax bracket, or the pre-defined range of dollars their income falls in. Tax brackets are adjusted annually for inflation.
Is all taxable income treated in the same way?
No, a separate schedule of tax rates applies to capital gains and dividends.
© 2021-2023 April Tax Solutions Inc. All rights reserved.
1. If you find an error in the tax preparation that entitles you to a larger refund (or smaller liability), we will refund any fees you paid us to use our service to prepare that return and you may use our service to amend your return at no additional charge. To qualify, the larger refund or smaller tax liability must not be due to differences or inaccuracies in data supplied by you, your choice not to claim a deduction or credit, positions taken on your return that are contrary to law, or changes in federal or state tax laws.
2. If our tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, April will reimburse you up to a maximum of $10,000.
3. If you receive an audit letter from the IRS or a state tax authority in connection with an accepted tax return filed through April, we will provide you with informational assistance, such as responses to frequently asked questions or links to resources on the IRS’s or other tax authority’s website. April will not represent you before the relevant tax authority or provide legal advice.
4. Please submit any inquiries or concerns to support@getapril.com. For data deletion requests, please see the Privacy Policy and submit the required information to privacy@getapril.com. To report a security incident, please contact security@getapril.com or see April's Responsible Disclosure Policy.
By accessing and using this page you agree to the Terms of Use and Privacy Policy.
