How to Use Tax Rate Tables

Paying taxes is rarely a pleasant experience, but at least the Internal Revenue Service simplifies the calculation of income taxes by providing a useful tax table. Of course, determining your taxable income is another, more complicated matter entirely, but if you've made it that far, the IRS eases the final step. State taxes may use a similar format or one requiring additional calculations.

Instructions

Federal 2010 Tax Table

1

Determine your taxable income, according to instructions on your income tax packet. This will be the figure listed on line 43 of Form 1040, the "U.S. Individual Income Tax Return."

2

Look on the 2010 Tax Table for your taxable income range. You will need to find the figures between which your taxable income falls. As an example, if you have taxable income of $23,023, you would find the line listed as "23,000 23,050." The column headers notate those two figures as "At least" and "But less than." Because $23,023 falls between those two numbers, you know you are on the correct line.

3

Read across to the right until you find the column that applies to you. This will be your filing method, such as "Single," "Married filing jointly," "Married filing separately" or "Head of the household." The number in this column is the amount of taxes you must pay. In the example, if you were married and filing a joint return, your tax requirement would be $2,616.

Other Tax Rate Tables

4

Determine you taxable income, according to the instructions on your state, or other, tax instruction booklet. In many cases, your taxable state income will be your taxable federal income. Find the table that corresponds to your filing status, such as "Married taxpayers filing a joint return." Find the line between which your taxable income falls, similar to the federal tax tables.

5

Read over to find your tax rate. Depending on the type of listing, you might find a dollar figure, percentage or both. If you see just a dollar figure, this will be your tax, and you do not need further calculations. If you see a percentage, you will have to calculate a little further. As an example, you might see a tax listing of "$617.32 + 6.15%."

6

Subtract the amount listed in the column "of the amount over" from your taxable income. In the example, if the "of the amount over" figure was $13,420 and your income was $23,023, you would subtract $13,420 from $23,023, which gives you $9,603.

If you only found a percentage in the tax column, the "of the amount over" will be zero, and your calculation will just be your taxable income.

7

Multiply this new figure by the decimal form of the percentage. To convert a percentage to decimal format, you divide by 100. In the example, 6.15 percent is converted into the decimal 0.0615 and multiplied by $9,603. This gives you $590.58.

8

Add this new calculation to the dollar amount, if any, listed under the tax column. In the example, you would add $590.58 to $617.32 for a total tax liability of $1,207.90.