Following is an example for calculating Federal Tax for a head of a household, who is earning $73,000/year. This example is for illustrative and planning purpose only. You may save money if other credits like exemptions, deductions, and mortgage deductions are applied. Please refer the Tax Table listed below to know more about the different Tax Brackets.
| Federal Tax Calculation for Head of a HouseHold Status | Amount |
| Total Salary | $73,000 |
| From Tax Tables: | |
| Federal Taxable Income for the Tax Bracket 0 - $10,450 | $1,045 |
| Federal Taxable Income for the Tax Bracket from $10,450 to $39,800=($39,800 - $10,450 = $29,350). So, Federal Tax you have to pay for $29,350 = 0.15 x $29,350 = $4,402.50 | $4,402.50 |
| Federal Taxable Income for the Tax Bracket from $39,800 to $73,000=($73,000 - $39,800 = $33,200). So, Federal Tax you have to pay for $33,200= 0.25 x $33,200 = $8,300.00 | $8,300 |
| Total Federal Tax you have to pay is $1,045 + $4,402.50 + $8,300 | $13,747.50 |
Note: Similary you can calculate your state income tax by referring the tax tables.
Federal Income Tax Table for Household - 2005| Sl.No | Taxable Income Between (Amount in $) |
Tax Percent Description |
| 1 | 0-10,450 | 10% of the amount over 0$ |
| 2 | 10,450-39,800 | $1,045.00 plus 15% of the amount over 10,450$ |
| 3 | 39,800-102,800 | $5,447.50 plus 25% of the amount over 39,800$ |
| 4 | 102,800-166,450 | $21,197.50 plus 28% of the amount over 102,800$ |
| 5 | 166,450-326,450 | $39,019.50 plus 33% of the amount over 166,450$ |
| 6 | 326,450-no limit | $91,819.50 plus 35% of the amount over 326,450$ |
Please visit http://irs.gov for more information on Federal Tax.
State Income Tax
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