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How Tax Brackets Work
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.
Example: Taxable income of $110,000
First $53,359 taxed at approximately 17% after personal exemption
Next $53,358 taxed at approximately 30.5%
Remaining $3,283 taxed at approximately 36%