{"id":1989,"date":"2012-03-05T14:00:31","date_gmt":"2012-03-05T20:00:31","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=1989"},"modified":"2021-08-12T11:07:45","modified_gmt":"2021-08-12T16:07:45","slug":"what-is-tax-rate-bracket","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/what-is-tax-rate-bracket\/","title":{"rendered":"What are the current tax rates?"},"content":{"rendered":"

Tax questions often have complex answers. The question of tax rates is no different. When someone asks about the current tax rates, they could be referring to a number of different types of tax rates. Is it the capital gains tax rate, marginal tax rate, or the withholding tax rate on bonuses (what some people think of as a \u201cbonus tax rate\u201d) you\u2019re looking for?<\/p>\n

\"Tax<\/p>\n

Not sure which one? Don\u2019t worry! We\u2019ll outline the types of tax rates and the situations when you\u2019ll encounter them in this post.<\/p>\n

Federal income tax rates<\/h2>\n

First let\u2019s talk about federal income tax rates. Most taxpayers are familiar with this concept \u2014 You typically see these percentages represented with a table along with ranges of income. The current federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.<\/p>\n

To see the 2019 and 2020 tax rates and income ranges, check out this article where we outline what the current tax brackets are<\/a>.<\/p>\n

One note for federal income tax rates is that they apply to ordinary income. Examples of ordinary income include salaries and wages, interest earned, income from self-employment and taxable IRA distributions. Among sources of other income<\/strong><\/a> are business income, farm income, rental real estate, alimony, unemployment compensation and nonqualified dividends.<\/p>\n

Another callout helpful in explaining federal tax income tax rates is understanding the difference between two terms \u2014 marginal tax rate and effective tax rate.<\/p>\n