Review states with the highest and lowest tax rates plus the most tax-friendly states to retire in - get your state taxes done with your IRS return.In other words, if your highest tax bracket is 26%, your entire income is not taxed at 26%, but is taxed in separate brackets leading up to your highest tax rate.
We can take the standard deduction of $13,850 from the $60,000 income which results in $46,150 of taxable income.The case study below outlines how $60,000 in income earned by a person filing as single is divided up into tax brackets: To better understand how tax rates or brackets are applied to income, let's look at a scenario. See all tax rates by year | Calculate your personal tax rate A portion of the adjusted gross income is assigned into tax brackets and each bracket is taxed at a different rate tax brackets and rates change by year. Instead, the rates change by the bracket the income falls into. What are federal tax brackets and rates and how do they work? In the United States, taxable income is not taxed at only one fixed tax rate.