How to Determine Your Federal Tax Bracket
Taxpayers in the United States pay federal income tax according to how much taxable money they make each year. The tax bracket, listed in a tax table or tax schedule, tells you approximately how much tax you will pay. It is important to note that your tax bracket is not the percentage of your income that you will pay in taxes. The actual amount you will pay in taxes is found through a formula when you complete your annual tax filing. However, by finding your taxable income and tax bracket, you will be able to ballpark your taxes and properly evaluate certain financial decisions.