TAX PLANNING | FILING | REPRESENTATION for Businesses and Individuals | Tax Rates
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Tax Rates

2016 Tax Rates – Single Taxpayers – Standard Deduction $6,300

2015 Rates

10%

0 to $9,275

15%

$9,275 to $37,650

25%

$37,650 to $91,150

28%

$91,150 to $190,150

33%

$190,150 to $413,350

35%

$413,350 to $415,050

39.6%

Over $415,050

2016 Tax Rates – Married Jointly & Surviving Spouses – Standard Deduction $12,600

10%

0 to $18,550

15%

$18,550 to $75,300

25%

$75,300 to $151,900

28%

$151,900 to $231,450

33%

$231,450 to $413,350

35%

$413,350 to $466,950

39.6%

Over $466,950

2016 Tax Rates – Married Filing Separately – Standard Deduction $6,300

10%

0 to $9,275

15%

$9,275 to $37,650

25%

$37,650 to $75,950

28%

$75,950 to $115,725

33%

$115,725 to $206,675

35%

$206,675 to $233,475

39.6%

Over $233,475

2016 Tax Rates – Head of Household – Standard Deduction $9,300

10%

0 to $13,250

15%

$13,250 to $50,400

25%

$50,400 to $130,150

28%

$130,150 to $210,800

33%

$210,800 to $413,350

35%

$413,350 to $441,000

39.6%

Over $441,000

2016 Tax Rates – Estates & Trusts

15%

0 to $2,550

25%

$2,550 to $5,950

28%

$5,950 to $9,050

33%

$9,050 to $12,400

39.6%

Over $12,400

 

Social Security

2016 Tax Rates

Social Security Tax Rate: Employers

6.2%

Social Security Tax Rate: Employees

6.2%

Social Security Tax Rate: Self-Employed

12.4%

Maximum Taxable Earnings

$118,500

Medicare Base Salary

Unlimited

Medicare Tax Rate

1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)

0.9%

Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)

3.8%

 

Miscellaneous

2016 Tax Rates

Personal Exemption $4,050

Business expensing limit: Cap on equipment purchases

$2,000,000

Business expensing limit: New and Used Equipment and Software

$500,000

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2016 tax liability

Standard mileage rate for business driving

54 cents

Standard mileage rate for medical/moving driving

19 cents

Standard mileage rate for charitable driving

14 cents

Child Tax Credit

$1,000

Unearned income maximum for children under 19 before kiddie tax applies

$1,050

Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket

0%

Maximum capital gains tax rate for taxpayers above the 15% bracket but below the 39.6% bracket

15%

Maximum capital gains tax rate for taxpayers in the 39.6% bracket

20%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum contribution for Traditional/Roth IRA

$5,500 if under age 50
$6,500 if 50 or older

Maximum employee contribution to SIMPLE IRA

$12,500 if under age 50
$15,500 if 50 or older

Maximum Contribution to SEP IRA

25% of eligible compensation
up to $53,000

401(k) maximum employee contribution limit

$18,000 if under age 50
$24,000 if 50 or older

Estate tax exemption

$5,450,000

Annual Exclusion for Gifts

$14,000

 

Education

2016 Tax Rates

American Opportunity Credit (Hope)

$2,500

Lifetime Learning Credit

$2,000

Student Loan Interest Deduction

$2,500

Coverdell Education Savings Contribution

$2,000

 

Standard Meal Rates for Family Child Care Providers for 2016 income tax returns

Continental U.S.

2016 Tax Rates

For each breakfast

$1.31

For each lunch or supper

$2.46

For each snack (up to 3 per day for each child)

$0.73

Alaska

2016 Tax Rates

For each breakfast

$2.09

For each lunch or supper

$3.99

For each snack (up to 3 per day for each child)

$1.19

Hawaii

2016 Tax Rates

For each breakfast

$1.53

For each lunch or supper

$2.88

For each snack (up to 3 per day for each child)

$0.86