What's your tax rate?

[TD2K]

I wonder what people here are paying for Federal taxes?

My marginal tax rate is 28%, my effective tax rate is just over 21%. No state income tax in Washington.

[tt00]

I'm 28% at federal .. My state is 6%

[Knee Deep in Water Chloe]

I have no idea. Yes, I know I should know.
Do you mean paying federal taxes at all, or just paying more on April 15?

[midjd]

Our effective federal tax rate was around 10% in 2010, IIRC (we had a LOT of deductions). Not sure about state.

[Knee Deep in Water Chloe]

Okay, so we made $145,000ish last year.
We paid $15,000ish to the feds last year.
Does that put us in the 10% tax bracket?
(We have a lot of deductions, two mortgages, HELOC, student loans, dh's alimony, we claim one child)

[Gardening Grandma]

Our marginal rate is 25%. Effective rate is 11%. In WA state, so no state income tax.

[TD2K]

Does that put us in the 10% tax bracket?

Your effective tax rate is about 10%. Your marginal tax rate (what you would pay on an additional dollar of income) is set by your AGI and is likely around 25% or so. Depends on that source of income: capital gains, dividends or salary, the 25% refers to additional salary income or short term capital gains.

[phil5185]

We're at about 13% of gross. (Fed tax $14.5k)

[Deleted]

We have a lot of deductions and this year had the energy credit for a new HVAC system.

Fed: effective rate 9%of all wages and marginal rate 25%
State: effective rate 5.5%

[teppe2]

Our effective rate was -0.75 % for federal income tax; we are NH residents so no state income tax.
Marginal tax rate is 25%.

[schildi]

For 2010:
bracket: 25%
effective tax rate: 10.63%
no state income tax.

[lurkyloo]

Marginal rate 33%; effective rate 18%, I think? I was way off on my original estimate of our gross; it was a bit of a shock to see our AGI not far off what I thought our gross was going to be (that was with nearly-maxed 401k's).
State effective rate was 6.7% (marginal is 9.25%).

[The Walk of the Penguin Mich]

25% bracket, but when combined with state income tax, I pay about 22%.

[schildi]

TD, good topic.
What's scary is that it seems like many don't know what marginal / effective tax rate means (judging by a few of the replies). Scary, especially considering this is YM.

[commentator]

Apr 17, 2011 13:00:01 GMT -5 Knee Deep in Water Chloe said:

Okay, so we made $145,000ish last year.
We paid $15,000ish to the feds last year.
Does that put us in the 10% tax bracket?
(We have a lot of deductions, two mortgages, HELOC, student loans, dh's alimony, we claim one child)

It appears you are in the 25% federal bracket. Once upon a time being in the 25% bracket meant if your income went up $100, your federal income tax would go up $25. Now, phaseouts and other needless complexities make knowing your tax bracket to be useful but incomplete when predicting how much taxes will change for a given change in income.

[sapphire12]

Marginal Tax Rate: 28%; effective ~11% for fed.
I live in MD and it's in the neighborhood of 4%.

[achelois]

My effective tax rate is 23%, per turbotax. Relatively high income and essentially no deductions--I itemize but it comes out very little better than standard.

[Knee Deep in Water Chloe]

Apr 17, 2011 14:11:19 GMT -5 schildi said:

TD, good topic.
What's scary is that it seems like many don't know what marginal / effective tax rate means (judging by a few of the replies). Scary, especially considering this is YM.

It's a public board. I come here because I need to continue learning about financial matters, not because I know everything about financial matters. Today, I learned both the terms marginal and effective tax rates, which for me was quite useful. I appreciate people helping me with that.
It's okay for me to admit I don't know something. I'm not sure why you think it's scary. No one knows everything about everything.

[❤ mollymouser ❤]

Honestly, I'm not sure. Probably 28% Federal, 10% State (California). No kids. No mortgage interest deduction. No student loan interest deduction.

[Tiny]

I guess I'd be in the 28% tax bracket if you went by my gross... taxable income is in the 25% tax bracket. My effective Tax Rate for 2010 (according to Turbo Tax) was 15.31%

My 2003 return sez I had an Effective Tax Rate of 14.66% (and my taxable income was 10K less than 2010!) Cleaned out the 2003 fiscal year file... saving just the actual tax forms for fun... that's why I have the 2003 numbers to hand.

[whoisjohngalt]

Our marginal rate went down after I stopped working (I was bringing about 40% of our income). Our effective started going down down down after we started having kids. It wend down 5% from 2009 to 2010 just bc we popped out another kid. Whoever said kids are priceless??

Lena

[Deleted]

Fed
Marginal tax rate 33%
Effective tax rate 29%

State (AZ)
Marginal 4.3%
Effective 3.6%

Had to make a $4,500 estimated tax payment today on top of our $13,500 we owed for 2010. Ouch!

[schildi]

Apr 17, 2011 16:36:19 GMT -5 Knee Deep in Water Chloe said:

Apr 17, 2011 14:11:19 GMT -5 schildi said:

TD, good topic.
What's scary is that it seems like many don't know what marginal / effective tax rate means (judging by a few of the replies). Scary, especially considering this is YM.

It's a public board. I come here because I need to continue learning about financial matters, not because I know everything about financial matters. Today, I learned both the terms marginal and effective tax rates, which for me was quite useful. I appreciate people helping me with that.
It's okay for me to admit I don't know something. I'm not sure why you think it's scary. No one knows everything about everything.

I find it scary when people reply as if they know things, but it's obvious that they don't. Things like that can lead to serious mistakes. I was, btw, never talking about you specifically, underwater.

[❤ mollymouser ❤]

OK ... I looked up this information.

Federal Marginal Tax rate: 25.0%
Federal Effective Tax rate: 15.50%
California State Income Tax (10% on incomes over $47,000)

[mesquite77]

marginal 20.5% (barely)
effective fed 5.5%, state 3.3% (on TI)

This year we'll be into the 25% bracket, losing some child tax credit and rental losses, I estimate our marginal to be 36%. (ouch)

[Mardi Gras Audrey]

Fed...marginal 25%, effective-10.02%, State effective-~3%, didn't figure out marginal because I'm lazy and it didn't matter).

[stats45]

The marginal tax rate is only on your last dollar earned, and I don't even know why people pay much attention to it if the bulk of their earnings are in a different bracket.

If you claim nothing but the standard deduction and personal exemption as a single filer, you hit an effective personal income tax rate of 20% only after earning $120,000, 25% after earning $230,000, and you have to earn over $500,000 to have an effective tax rate over 30%.

[alabamagal]

Marginal tax rate is 25% federal and 6% state. Effective tax rate this year was 4.2% federal (thanks to 2 college tuition tax credits, one child tax credit, making work pay credit!) and 3.3% state. We payed almost as much in state taxes as federal.