Roth or Traditional Retirement Accounts

In 2014, federal taxes are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. For a taxpayer who is married and applying together, no matter how much the household earns, the first $ 18,150 in income after calculating rebates and exemptions will only be taxed at a 10% tax rate. In the same way, all income generated by a household that is greater than $ 18,150 but less than $ 73,800 is taxed at a rate of 15%. At that time, the next $ 75,050 is taxed at 25% and so on. Therefore, the entire income rate for a household during the year is not charged at the same rate. A marginal tax rate is a rate that applies to the last dollar the household earned.