The original four filing statuses were single, married filing jointly, married filing separately, and head of household, though rates were the same regardless of tax status. A second revenue act in 1862 established the first two tax brackets: 3% for annual incomes from $600 to $10,000, and 5% on incomes above $10,000. tax code since the inception of the very first income tax, when the Union government passed the Revenue Act of 1861 to help fund its war against the Confederacy. Update: This table was updated on Februand Jto reflect the most recent data available for Maine, Maryland, Nebraska, and Oregon. In addition, some states adopted legislation in 2019 that changed various individual income tax provisions and made those changes retroactive to the beginning of tax year 2019. Several states changed key features of their individual income tax codes going into tax year 2020. Recommended Reading: How Much Is Sales Tax In Arkansas Notable Individual Income Tax Changes In 2020 As your income moves up the ladder, your taxes will increase: However, some of your income will be taxed at the lower tax brackets, 10% and 12%. If you are single and your taxable income is $75,000 in 2022, your marginal tax bracket is 22%. This tax bracket represents the highest tax ratewhich applies to the top portion of your income. The tax bracket your top dollar falls into is your marginal tax bracket.
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