Tip of the Week

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

  • Next $50,195 taxed at approximately 30.5%

  • Remaining $9,608 taxed at approximately 36%

Questions? Call or email today!