2016 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 2016:

Individual Tax Rate Schedules for 2016
Filing Status Taxable Income ($) Marginal Tax Bracket Rate (%)
Married Filing Jointly 0 to 18,550 10
18,551 to 75,300 15
75,301 to 151,900 25
151,901 to 231,450 28
231,451 to 413,350 33
413,351 to 466,950 35
466,950 and higher 39.6
Head of Household 0 to 13,250 10
13,251 to 50,400 15
50,401 to 130,150 25
130,151 to 210,800 28
210,801 to 413,350 33
413,351 to 441,000 35
441,001 and higher 39.6
Single 0 to 9,275 10
9,276 to 37,650 15
37,651 to 91,150 25
90,151 to 190,150 28
190,151 to 413,350 33
413,351 to 415,050 35
415,051 and higher 39.6
Married Filing Separately 0 to 9,275 10
9,276 to 37,650 15
37,651 to 75,950 25
75,951 to 115,725 28
115,726 to 206,675 33
206,676 to 233,475 35
233,475 and higher 39.6
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 39.6% Tax Bracket
2.0 2.35 2.66 2.77 2.98 3.08 3.31
2.5 2.94 3.33 3.47 3.73 3.85 4.14
3.0 3.53 4.00 4.17 4.48 4.62 4.97
3.5 4.18 4.66 4.86 5.22 5.38 5.79
4.0 4.71 5.33 5.55 5.97 6.15 6.62
4.5 5.29 6.00 6.25 6.71 6.92 7.45
5.0 5.88 6.66 6.94 7.46 7.69 8.28
5.5 6.47 7.33 7.63 8.20 8.46 9.11
6.0 7.06 8.00 8.33 8.95 9.23 9.93
6.5 7.65 8.66 9.02 9.70 10.00 10.76
7.0 8.24 9.33 9.72 10.44 10.77 11.59
*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 %) or see www.calcxml.com/calculators/inc11

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