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 $100,000
First $47,630 taxed at approximately 17% after personal exemption
Next $47,629 taxed at approximately 30.5%
Remaining $4,741 taxed at approximately 36%