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How Tax Brackets Work

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Personal tax rates are approximately as follows:

It is important to realize that if your taxable income is one dollar into the next tax bracket, it is only that dollar that is taxed at the higher rate.

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Example: Taxable income of $110,000

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  • First $50,197 taxed at approximately 17% after personal exemption

  • Next $50,195 taxed at approximately 30.5%

  • Remaining $9,608 taxed at approximately 36%

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