2014 Tax Brackets and Tax Tables

We're less than a month away from tax day. For those who pay taxes once a year -- and that's most of us -- taxes for 2013 are due on April 15, and you'll be using the 2013 Tax Brackets and Tax Tables. But for those who have to pay taxes quarterly, the 2014 tax brackets and tax tables apply -- and those tables are also ready.

While smaller tax tables are at least two years away, pending legislation, in 2014 there are still seven tax brackets. Here they are:

Tax Rate

Single

Married Filing Jointly or Qualifying Widow

Married Filing Separately

Head of Household

10%

< $9,075

< $18,150

< $9,075

< $12,950

15%

$9,076 to $36,900

$18,151 to $73,800

$9,076 to $36,900

$12,951 to $49,400

25%

$36,901 to $89,350

$73,801 to $148,850

$36,901 to $74,425

$49,401 to $127,550

28%

$89,351 to $186,350

$148,851 to $226,850

$74,426 to $113,425

$127,551 to $206,600

33%

$186,351 to $405,100

$226,851 to $405,100

$113,426 to $202,550

$206,601 to $405,100

35%

$405,101 to $406,750

$405,101 to $457,600

$202,551 to $228,800

$405,101 to $432,200

39.6%

> $406,751

> $457,601

> $228,801

> $432,201

Source: IRS.

It's important to note that this a list of marginal tax rates, representing the rate you pay on each additional dollar of income. So for example, assuming no deductions, if you earned $9,076, $1 above the 10% tax bracket, your rate would be 10% on the first $9,075 of income and 15% on the next $1, and not 15% on the whole $8,926.

Other changes on the way
If it seems that every year taxes get slightly more complicated, this year you would be correct. There is one big difference between 2013 and 2014 income taxes, though by the time 2014 tax season rolls around, that could change if Congress acts. But for now, you'll have to think about the penalty for not having health insurance. For low-income consumers, the penalty for not having health insurance is $95. For those earning more than $20,000, the penalty is roughly 1% of your adjusted income. You can read all about the calculations here, but it's important to realize that the actual penalty is 1% of income if you earn more than $20,000, not the $95 that the press bandies about. For high-income taxpayers, that can add up quickly.

Keep watching Fool.com for more tax news, as well as strategies for saving yourself money when Uncle Sam comes calling.

The dead simple "tax-skipping" strategy
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 27, 2014, at 2:01 AM, Nadrakas wrote:

    "But for now, you'll have to think about the penalty for not having health insurance."

    Yes, that's right: No health insurance means paying a penalty, even if you pay quarterly on your taxes during 2014...so don't let the MSM & the White House fool you into believing otherwise.

    ~ N

  • Report this Comment On April 08, 2014, at 1:53 PM, dit2802 wrote:

    I want to be sure I understand marginal tax rates. If my income crosses brackets, I am charged one rate on the amount in the first bracket and the higher rate is applied to the remaining amount?

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