2011 Tax Rates: Will Your Taxes Go Up?
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.
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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Are these tax brackets for Fed and State???
@ Sandy: Federal only. State tax brackets vary by state.
Thanks Madison,
So I guess I should save more $ to cover the state as well, huh??
Have a question for ya. I am a single and on W2. My deduction is 2 on W4. But I always owe money to Fed and the state. It bothers h*** out of me b/ a lot of people get a refund but i don’t. I thought standard # of deduction for a single is 2!!! I know I can always contribute more $ or lower the # of deductions, but if i am following everything what I supposed to but still owe money to uncle Sam worries me…. Is it normal????
Sandy,
As a single person, the only deduction you can claim is yourself (1). If you claim 2, the amount of money held from your paycheck is less than what you owe, resulting in your payment to the government come tax time. If you want to break even, claim 1 exemption on your W4. If you want a refund, claim 0 exemptions.
Pretty scary income tax brackets… For lower incomes here in Canada, we can get refunded into a surplus of what’s paid in. I don’t know if that also applies to America… Do all income tax brackets pay in, ultimately?