How to Determine your Marginal Tax Bracket (MTB)
1. Ask your tax preparer, or find your taxable income from last years return and compare to a table of tax rates for your filing status:
Look up $ amount of your taxable income (from your return)
In tax table (in instruction booklet) find amount of tax owed (for your filing status)
Add $100 to your taxable income and find amount of tax owed
Subtract #2 from #3: The difference between the 2 numbers should be 15, 28, 31, 36, or 39.6(%) = your tax bracket.
Reminder: some of your income is NOT taxable because you can subtract your personal exemption(s) and standard deduction (or itemized deductions if > standard deduction). The first increment of taxable income is taxed at 15%; any income exceeding that amount is taxed at 28%, etc. Most taxpayers are in the 15% or 28% MTB. Taxable income is always less than total income.