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Home » Taxes

2013 Tax Brackets (Post Fiscal Cliff)

Last updated by on 6 Comments

1/1/14 update: The 2014 tax brackets (for the 2014 calendar year) has since been announced. What follows is relevant to the 2013 calendar year. 

There seems to be a good amount of confusion around what the American Taxpayer Relief Act (aka “the fiscal cliff deal“), actually means for marginal tax rates.

Many media outlets and personal finance blogs are incorrectly reporting that the new (old) highest 39.6% tax bracket replaces the 35% bracket. Not true. The IRS released it’s 2013 marginal tax rates, and the new 39.6% bracket is in addition to, not a replacement.

There are also a number of inflation adjustments this year for the tax brackets and for standard deductions.

This may be a good time to revisit what your overall adjusted gross income might be this year and adjust your tax allowances so that you don’t end up getting penalized for owing too much in taxes or getting too big of a refund (lending your money to the government, interest-free).

What are Tax Brackets or Tax Tables?

2013 tax bracketsBefore getting to the changes, it’s important to know that tax brackets represent the income tax rate you owe for that portion of your income that falls into that bracket. As an example with last year’s tax brackets, if you are single, the tax rate on your first $8,700 of income is only 10%, income between $8,700 and $35,350 is taxed at 15%, and so on.

Many wrongly assume that if your total income peaks at the 28% tax bracket, for example, all of your income is taxed at that rate. But that is not correct.

2013 Tax Brackets

2013 Tax Brackets for Singles:

10% – $0-$8,925 (up from $8,700)
15% – $8,950-$36,250 (up from $8,700-35,350)
25% – $36,250-$87,850 (up from $35,350-$85,650)
28% – $87,850-$183,250 (up from $85,650-$178,650)
33% – $183,250-$398,350 (up from $178,650-$388,350)
35% – $398,350-$400,000+ (up from $388,350+)
39.6% – $400,000+ (new in 2013)

2013 Tax Brackets for Married Filing Jointly:

10% – $0-$17,850 (up from $0-$17,400)
15% – $17,850-$72,500 (up from $17,400-$70,700)
25% – $72,500-$146,400 (up from $70,700-$142,700)
28% – $146,400-$223,050 (up from $142,700-$217,450)
33% – $223,050-$398,350 (up from $217,450-$388,350)
35% – $398,350-$450,000 (up from $388,350+)
39.6% – $450,000+ (new in 2013)

2013 Tax Brackets for Married Filing Separately:

10% – $0-$8,925 (up from $0-$8,700)
15% – $8,950-$36,250 (up from $8,700-$35,350)
25% – $36,250-$73,200 (up from $35,350-$71,350)
28% – $73,200-$111,525 (up from $71,350-$108,725)
33% – $111,525-$199,175 (up from $108,725-$194,175)
35% – $199,175-$225,000 (up from $194,175+)
39.6% – $225,000+ (new in 2013)

2013 Tax Brackets for Head Of Household:

10% – $0-$12,750 (up from $0-$12,400)
15% – $12,750-$48,600 (up from $12,400-$47,350)
25% – $48,600-$125,450 (up from $47,350-$122,300)
28% – $125,450-$203,150 (up from $122,300-$198,050)
33% – $203,150-$398,350 (up from $198,050-$388,350)
35% – $389,350-$425,000 (up from $388,350+)
39.6% – $425,000+ (new in 2013)

2013 Standard Deductions

Standard tax deductions will lower your taxable income, if you don’t decide to itemize taxes. The 2013 standard deductions have also increased due to inflation adjustments:

  • $6,100 for single filers & married filing separately (up from $5,950)
  • $12,200 for married filers (up from $11,900)
  • $8,950 for head of household (up from $8,700)
  • $1,000 for dependents (up from $950)

Tax Bracket Discussion:

  • Which tax bracket will you top out in for 2012?
  • What do you think about the 2013 tax rate changes?

About the Author
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6 Comments »
  • Jose says:

    I top out in the 28% with our combined income, there doesn’t seem to be much incentive to earn more. It seems the more I earn, the less I have! Oh wait, that’s true! lol

  • Nick @ ayoungpro.com says:

    Not much of a change for me! Thank heavens our new rental property provides some tax benefits. :)

  • Carol says:

    Last year I did some serious looking at places to stash money pre-taxed so I could ‘pay myself’. And just as Andrew says, I opened a 401(k), HSA account and maxed out my IRA contribution. Really helped a lot on my 2012 tax bill! I’ll live on less now so that I can have more later.

  • Nicholas says:

    My wife is moving to part time because of the tax brackets. We get by way more than fine now, and she doesn’t like one of the schools she teaches at. Her salary is also really low, so its not a big hit in income. We did the math – between federal income tax, state income tax, county income tax, medicare tax, social security (payroll) tax, that money is getting taxed at 39.96%. When you calculate the money also shes spending on fuel and car wear-and-tear, its simply not worth the effort to work. We value our free time way too much to bust our butt working for the tax man.

  • Ron Ablang says:

    I’m in the 15% tax bracket for married filing jointly for 2013. Pretty large group. Don’t know what the 15% means.

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