Update: Current year tax rates: 2012 Tax Rates & 2012 Tax Brackets are now available.

What will the 2011 tax rates be? Lots of things could happen with the 2011 tax brackets, but whatever the changes are, they will impact your tax planning this year.

2011 Tax Rate Changes

There are many things that could happen with the 2011 tax rates. Congress could let all of the 2001 Bush tax cuts expire, which would essentially raise taxes for all the tax brackets.

Or they could keep the tax cuts in place for those earning less than $250,000, but bring back the two higher tax rates in 2011 for those making over $250,000 as they have alluded to in the 2010 budget proposal. The proposal also includes expanding the tax bracket for those in the 28% bracket.

Or they could do something totally different and surprise us all. To figure out what your taxes will look like in 2011, you can use the 2011 Tax Calculator.

We’ll keep you posted on what will happen to the 2011 tax rates as the Obama Tax Deal is worked out.

2011 Tax Rates & Brackets Proposed

Since we have to assume something for tax planning, we’ll use the projections from the proposed budget. Here’s what it could look like under the budget proposal.

 
Tax Rate Single Married Filing Joint Head of Household
10% Up to $8,425 Up to $16,850 Up to $12,000
15% $8,426 – $34,200 $16,851 – $68,400 $12,001 – $45,800
25% $34,201 – $82,850 $68,401 – $138,050 $45,801 – $118,300
28% $82,851 – $192,000 $138,051 – $232,950 $118,301 – $189,350
36% $192,001 – $375,700 $232,951 – $375,700 $189,351 – $375,700
39.6% Over $375,700 Over $375,700 Over $375,700

These tax rate projections were developed by the Tax Policy Center.

If you want to compare to the current tax rates, check out the 2010 Tax Brackets.

Of course it’s anyone’s guess as to where we’ll end up! Stay tuned for more on 2011 tax planning!

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