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Learn fundamental concepts before referring to your tax rate to avoid confusion and potential errors in your computation. Initially you must discover out is the taxable income. Get the result of the income for the year without worrying about allowable deductions, exemptions, and adjustments come across your taxable income. Based located on the resulting taxable income, you should find the applicable income level and the corresponding income tax bracket. The rate on your tax is presented in percentage way.

Congress finally acted on New Year's Day, passing the "fiscal cliff" laws. This law extended the existing tax rate structure for single taxpayers with taxable income of compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For individuals with higher incomes, the top tax rate was increased to 22.6% These limits are determined with the foreign earned income exemption.

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