Tax Brackets and Deductions
Sterling displays federal and state tax brackets organized by filing status. These tables show the income thresholds where each marginal rate applies.
Federal Income Tax Brackets
Federal ordinary income is taxed at seven marginal rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each filing status has different bracket thresholds. The tables show where each rate begins and ends.
Marginal vs Effective Rates
These brackets show marginal rates, not effective rates. A client in the 24% bracket does not pay 24% on all income, only on income within that specific range.
Capital Gains Tax Brackets
Long-term capital gains receive preferential rates of 0%, 15%, or 20% depending on taxable income. The thresholds differ by filing status. These rates apply to assets held longer than one year.
Standard Deduction
The standard deduction reduces taxable income before applying tax brackets. Amounts vary by filing status. Clients 65 and older receive an additional deduction amount.
Net Investment Income Tax
The 3.8% Net Investment Income Tax applies to investment income when modified adjusted gross income exceeds threshold amounts. Single filers face this tax above $200,000. For married filing jointly, the threshold is $250,000.
State Income Tax Tables
Select any state from the dropdown to view its income tax brackets and deductions. States use different filing status categories and may include local taxes, credits, or exemptions unique to that jurisdiction.
Multi-State Planning
For clients with income in multiple states, review each state's table separately. State residency rules determine which rates apply to different income sources.