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1 Kyle Pomerleau, 2015 Tax Brackets 1 (2014)

handle is hein.taxfoundation/tfiftb0001 and id is 1 raw text is: Tm @2015 Tax Brackets FOUNDATION FISCAL By Kyle Pomereau Economist FACT Oct. 2014 No. 440 Introduction Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called bracket creep. This is the phenomenon by which people are pushed into higher income tax brackets or have reduced value from credits or deductions due to inflation instead of an actual increase in real income. The IRS uses the Consumer Price Index (CPI) to calculate the past year's inflation and adjusts income thresholds, deduction amounts, and credit values accordingly. Rather than directly adjusting last year's values for annual inflation, each provision is adjusted from a specified base year. For more information, see the methodology, below. Estimated Income Tax Brackets and Rates In 2015, the income limits for all brackets and all filers will be adjusted for inflation and will be as seen in Table 1. The top marginal income tax rate of 39.6 percent will hit taxpayers with adjusted gross income of $413,200 and higher for single filers and $464,850 and higher for married filers. Table 1. 2015 Taxable Income Brackets and Rates (Estimate) Rate Single Filers Married Joint Filers Head of Household Filers 15% $9,225 to $37450 $18,450 to $74,900 $13,150 to $50,200 Source: Author's calculations.