tax rates

The IRS has announced the annual inflation adjustments for a number of provisions for the year 2014, including tax rate schedules, tax tables and cost-of-living adjustments for certain tax items. Visit this Tax Rates page to keep up to date on key federal tax law developments throughout the year.

2014 Tax Rates

Unmarried (Not Surviving Spouse or Head of Household)
10%
0 to $9,075
15%
$9,075 to $36,900
25%
$36,900 to $89,350
28%
$89,350 to $186,350
33%
$186,350 to $405,100
35%
$405,100 to $406,750
39.6%
Over $406,750
Married, Filing Joint Return (and Surviving Spouse)
10%
0 to $18,150
15%
$18,150 to $73,800
25%
$73,800 to $148,850
28%
$148,850 to $226,850
33%
$226,850 to $405,100
35%
$405,100 to $457,600
39.6%
Over $457,600
Head of Household
10%
0 to $12,950
15%
$12,950 to $49,400
25%
$49,400 to $127,550
28%
$127,550 to $206,600
33%
$206,600 to $405,100
35%
$405,100 to $432,200
39.6%
Over $432,200
Married, Filing Separate Return
10%
0 to $9,075
15%
$9,075 to $36,900
25%
$36,900 to $74,425
28%
$74,425 to $113,425
33%
$113,425 to $202,550
35%
$202,550 to $228,800
39.6%
Over $228,800

Standard Deductions

$6,200
Unmarried (Not Surviving Spouse or Head of Household)
$12,400
Married, Filing Joint Return (and Surviving Spouse)
$9,100
Head of Household
$6,200
Married, Filing Separate Return
$1,200
Additional Amount for Blindness or Age
$1,500
Additional Amount as Above if Unmarried and Not S.S.
$1,000
Dependent Standard Deduction (Minimum) or Earned Income plus $350

Itemized Deductions

Phaseout of Itemized Deductions (AGI Threshold Starts):
$254,200
Unmarried (Not Surviving Spouse or Head of Household)
$305,050
Married, Filing Joint Return (and Surviving Spouse)
$279,650
Head of Household
$152,525
Married, Filing Separate Return
Medical Deductions (AGI Threshold):
10%
Taxpayers, generally
7.5%
Taxpayer or Spouse, Age 65 and Older
10%
Nonbusiness Casualty Loss (AGI Threshold)
2%
Miscellaneous Itemized Deduction (AGI Threshold)

Exemptions

$3,950
Personal & Dependent Amount
Phaseout of Exemptions (AGI Threshold Starts):
$254,200
Unmarried (Not Surviving Spouse or Head of Household)
$305,050
Married, Filing Joint Return (and Surviving Spouse)
$279,650
Head of Household
$152,525
Married, Filing Separate Return
Personal exemptions are reduced by 2% for each $2,500 by which AGI exceeds the applicable threshold. Total itemized deductions are reduced by 3% of the amount that AGI exceeds the applicable threshold, with the reduction not to exceed 80% of the otherwise allowable deductions.

Education Provisions

$2,500
American Opportunity (Modified Hope) Credit
$2,000
Lifetime Learning Credit
$2,000
Coverdell Education Savings Account Contribution
$2,500
Student Loan Interest Deduction
Phaseout of U.S. Savings Bond Interest Exclusion (MAGI Threshold Starts):
$113,950
Married, Filing Joint Return
$76,000
Unmarried, Surviving Spouse, or Head of Household

Alternative Minimum Tax (AMT)

TI Threshold where 26% AMT Tax Rate ends and 28% Rate Begins:
$182,500
Individuals, Estates, and Trusts, generally
$91,250
Married, Filing Separate Return
Exemption Amounts:
$82,100
Married, Filing Joint Return (and Surviving Spouse)
$52,800
Unmarried and Head of Household (Not Surviving Spouse)
$41,050
Married, Filing Separate Return
$23,500
Estate and Trust
Phaseout of AMT Exemption (AMTI Threshold Starts):
$156,500
Married, Filing Joint Return (and Surviving Spouse)
$117,300
Unmarried and Head of Household (Not Surviving Spouse)
$78,250
Married, Filing Separate Return
$78,250
Estate and Trust

Net Investment Income Tax

Individual Filers will pay an additional 3.8% on Net Investment Income (NII) above certain income thresholds. NII includes:

  1. Interest
  2. Dividends
  3. Capital gains
  4. Rental and royalty income
  5. Non-qualified annuities
  6. Income from businesses involved in trading of financial instruments
  7. Income from businesses that are passive activities to the taxpayer
Net Investment Income Threshold Starts:
$250,000
Married, Filing Joint Return (and Surviving Spouse)
$200,000
Unmarried and Head of Household (Not Surviving Spouse)
$125,000
Married, Filing Separate Return

Net Capital Gains & Qual. Dividends

0%
Taxpayers in 10% or 15% Income Tax Bracket
15%
Taxpayers in 25%, 28%, 33%, or 35% Income Tax Bracket
20%
Taxpayers in 39.6% Income Tax Bracket
25%
Unrecaptured Gain on Real Estate (Section 1250 gain)
28%
Collectibles and Qualified Small Business Stock
Taxpayers whose MAGI exceeds certain thresholds will also be subject to the 3.8% NII Tax as detailed in the Net Investment Income Tax section.

Additional Medicare Tax

An additional 0.9% Medicare Tax will apply to wages and compensation and self-employment income above certain income thresholds as below:
$250,000
Married, Filing Joint Return (and Surviving Spouse)
$200,000
Unmarried and Head of Household (Not Surviving Spouse)
$125,000
Married, Filing Separate Return

Estate & Gift Taxes

$5.34M
Estate & Gift Applicable Exclusion Amount
$14,000
Annual Gift Tax Exclusion (per Donee)
40%
Maximum Estate & Gift Tax Rate

Depreciation Deductions

$25,000
Section 179 Deduction Limit
$200,000
Section 179 Investment Limitation Phaseout Begins
50%
Bonus Depreciation of certain assets

Mileage

56 c
Business Mileage Rate
23.5 c
Medical and Moving Mileage Rate
14 c
Charitable Mileage Rate
22 c
Depreciation Component of Business Mileage Rate

Health Savings Account (HSA)

$3,300
Self-Only Coverage Contribution Limit
$6.550
Family Coverage Contribution Limit
$1,000
Catch-up Provision (ages 55+)

Payroll Taxes

15.3%
FICA or Self-Employed Combined Rate (OASDI+Medicare)
7.65%
FICA (Employer or Employee) Rate (OASDI+Medicare)
6.2%
OASDI (Employer or Employee) Rate
$117,000
OASDI Maximum Base
1.45%
Medicare (Employer or Employee) Rate
0.9%
Additional Medicare Tax
6.2%
FUTA Rate
$7,000
FUTA Wage Base
$1,800
Nanny Tax Threshold

Retirement Plans

$17,500
Max. Elective Deferral to 401(k), 403(b), 457
$12,000
Max. Elective Deferral to SIMPLE 401(k) and SIMPLE IRA
$5,500
Max. Contribution Limit to Traditional and Roth IRAs
Catch-up Contribution Limits (for Individuals Age 50 and over):
$5,500
401(k), 403(b), 457 Plans
$2,500
SIMPLE 401(k) and SIMPLE IRA Plans
$1,000
Traditional and Roth IRAs
$52,000
Limit on Annual Contributions to Defined Contribution Plans and SEPs
$260,000
Annual Compensation Limit for Determining Contributions
$210,000
Limit on Annual Contributions to Defined Benefit Plans