What Percentage Goes Towards Taxes?
Although you would only have to pay a 22% rate on $20,525 of your income at $60,000 in taxable earnings, someone who earns $80,000 would pay the 22% rate on $40,525 of his income, even though you have the same marginal tax rate and fall into the same tax bracket.
What’s the tax rate for the first 10 percent of income?
The first $9,525 you earn is taxed in the first 10 percent bracket. Your income between $9,526 and $38,700 is taxed in the 12 percent tax bracket, and the remaining $11,300 balance is taxed at 22 percent. The tax rates associated with each of these brackets are called marginal tax rates.
