Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Tax Table

What it is:

A tax table shows the tax due for different income ranges.

How it works (Example):

For example, according to the IRS 2011 tax table, if John makes a salary between $76,150 and $76,200 and is single, he owes $15,169 in taxes

[Click here to see the 2011 IRS tax table.]

There are also tax tables for state taxes. Those, of course, vary by state.

Why it Matters:

Tax tables are where the rubber meets the road in the tax world. Though long, they lay out the tax owed for each level of taxable income. Remember, however, that taxable income is not the same as adjusted gross income (AGI). Taxable income is the amount of income subject to tax after the taxpayer has factored in all of his or her tax credits and deductions.