The 10 Percent Rate

• The lowest rate is a 10 percent tax. For single people and married people filing separately, it applies to the first $8,375 in taxable income. Heads of household enjoy the t10 percent rate up to $11,950, and married couples filing jointly are taxed at this rate on their first $16,750 in combined income.
  
  

The 15 Percent Rate

• Many middle-income married couples pay this rate which, when they file jointly, applies to their earnings between $16,750 and $68,000. Single people and married people who file separate returns pay it on their income between $8,376 and $34,000, and heads of household pay this rate on their income between $11,951 and $45,550.
  
  

The 25 Percent Rate

• The "marriage penalty" returns with the 25 percent tax rate, because married couples graduate out of this rate at income levels that are less than that of twice a single person. To be exact, single people pay this rate on income between $34,001 and $82,400, but jointly-filing married couples pay it on incomes between $68,001 and $137,300. Separate-filing spouses are subject to 25 percent tax on their income from $34,001 to $68,650 and heads of household pay this rate between $45,551 and $117,650 in taxable income.
  
  

The 28 Percent Rate

• Applying to higher income individuals and families, this rate applies to the income of single people between $82,401 and $171,850 and heads of household income between $117,651 and $190,550. Married couples filing together pay it on income between $137,301 and $209,250 and those who file separate returns have to pay this rate on income between $68,651 and $104,625.
  
  

The 33 Percent Rate

• High income married couples pay this rate on their income between $209,251 and $373,650, with separate filers paying it on their personal income between $104,626 and $186,825. Single people are subject to it at $171,851 in income, through $373,650 in taxable income, and heads of household pay it between $190,551 and $373,650.
  
  

The 35 Percent Rate

• The highest tax rate, 35 percent, applies to all taxable income over $373,651 for every filer, except for married people who file separately. Those people pay it on all of the income that they earn over $186,826.
  
  

Other Federal Taxes

• In addition to the income tax, many American families also pay either the alternative minimum tax or self-employment tax. The AMT is a tax that eliminates most itemized deductions and exemptions and replaces them with a single large deduction which, in 2010, will be $72,450 for a married couple filing jointly. In 2010, the AMT is 26 percent of income from $72,451 to $150,000 for married couples filing jointly and $47,451 to $112,500 for singles or heads of household, and goes up incrementally to 32.5 and 35 percent. Many self-employed people also pay self-employment tax, which is the equivalent of their worker and employer FICA contributions. Self-employment tax is 15.3 percent of the business' net profit up to $106,800, and 2.9 percent of its net profit above that number, based on IRS statistics for the 2009 tax year.