2012 Marginal Tax Brackets

Your marginal tax bracket determines how much of the earnings from savings and investments you get to keep after taxes. Below are the four individual tax rate schedules for 2012:

Individual Tax Rate Schedules for 2012
Filing Status Taxable Income ($) Marginal Tax Bracket Rate (%)
Married Filing Jointly 0 to 17,400 10
17,401 to 70,700 15
70,701 to 142,700 25
142,701 to 217,450 28
217,451 to 388,350 33
388,350 and higher 35
Head of Household 0 to 12,400 10
12,401 to 47,350 15
47,351 to 122,300 25
122,301 to 198,050 28
198,051 to 388,350 33
388,350 and higher 35
Single 0 to 8,700 10
8,701 to 35,350 15
35,351 to 85,650 25
85,651 to 178,650 28
178,651 to 388,350 33
388,350 and higher 35
Married Filing Separately 0 to 8,700 10
8,701 to 35,350 15
35,351 to 71,350 25
71,351 to 108,725 28
108,726 to 194,175 33
194,175 and higher 35
Tax-Exempt and Taxable Yields Compared*
Tax-Exempt Yield (%) Taxable Equivalent Yield (%) for Tax Rate of:
15% Tax Bracket 25% Tax Bracket 28% Tax Bracket 33% Tax Bracket 35% Tax Bracket
2.0 2.35 2.66 2.77 2.98 3.08
2.5 2.94 3.33 3.47 3.73 3.85
3.0 3.53 4.00 4.17 4.48 4.62
3.5 4.18 4.66 4.86 5.22 5.38
4.0 4.71 5.33 5.55 5.97 6.15
4.5 5.29 6.00 6.25 6.71 6.92
5.0 5.88 6.66 6.94 7.46 7.69
5.5 6.47 7.33 7.63 8.20 8.46
6.0 7.06 8.00 8.33 8.95 9.23
6.5 7.65 8.66 9.02 9.70 10.00
7.0 8.24 9.33 9.72 10.44 10.77
*Federal income tax rates only. Does not include state income tax.

If you cannot find a specific rate on the chart you can compare yields by using the following formula:

Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %)

Example: Assume you are in the 25% tax bracket, and have an account with a 4.5% tax-free yield. To get the equivalent taxable yield, divide 4.5% by 75% (100% - 25%). The taxable yield is 6.%.


  1. Rutgers
  2. Executive Dean of Agriculture and Natural Resources
  3. School of Environmental and Biological Sciences