US Tax Brackets Forecast for 2016
October 16, 2015 Taxation in USA
WASHINGTON D.C. – Researchers have made forecasts of the new tax brackets which the US will use next year in order to prevent bracket creep for individual taxpayers.
On October 14th the Tax Foundation issued the results of new research detailing estimates of the tax brackets and rates to be faced by individual taxpayers in the USA over the 2016 year.
The national tax authority of the USA, the Internal Revenues Service, adjusts the tax brackets faced by individuals every year in order to ensure that taxpayers do not face the problem of bracket creep, whereby annual salary adjustments to force taxpayers into a higher tax bracket despite their actual purchasing power never increasing.
It is estimated that the lowest tax rate of 10 percent will apply to individuals earning up to USD 9 275, while the 15 percent rate will be faced by those earning up to USD 37 650, and individuals earning USD 91 150 will face a rate of 25 percent.
Further, people with incomes between USD 91 150 and USD 190 150 will face a rate of income tax of 28 percent, with 33 percent levied on incomes of earners taking home USD 413 350, with those earning up to 415 050 paying 35 percent, and 39.6 percent on all incomes exceeding the previous bracket.
Photo By: Emilian Robert Vicol