What Are the Tax Tiers?

by Kara Page ; Updated July 27, 2017

In the United States, tax rates are determined using a tier system, also known as brackets. There are a few conditions that determine a person's taxable income, specifically the type of filing being done. Also, take into account that that tiers apply to taxable income, which is often reduced by deductions.

Schedule X

The Schedule X rates are based on taxpayers filing as "Single". Those that earned $8,375 or less in 2010 paid 10 percent in taxes. If a single filer's income is more than $8,375 but not more than $34,000, he paid $837.50 plus an additional 15 percent of income over $8,375. From $34,000 to $82,400, taxes are $4,681.25 plus 25 percent the amount over $34,000. Incomes between $82,400 and $171,850 are subject to $16,781.25 in taxes plus another 28 percent on amounts above $82,400. If you earned $171,850 to $373,650 in 2010, you paid $41,827.25 and 33 percent of income over $171,850. The highest tier is for those who earned over $373,650. They paud $108,421.25 and another 35 percent of income over $373,650.

Schedule Y-1

Those who are married and filing jointly will use Schedule Y-1. The bottom 10 percent tier is for incomes of $16,750 or less. From $16,750 to $68,000, $1,675.00 plus 15 percent of income above $16,750 were due. Those earning from $68,000 to $137,300 paid $9,362.50 and 25 percent of salary above $68,000. For incomes ranging from $137,300 to $209,250, married couples will pay $26,687.50 plus 28 percent of amounts above $137,300. Earning between $209,250 and $373,650 brought a tax bill of $46,833.50 and another 33% for amounts over $209,250. The highest tax bracket of incomes over $373,650, married joint filers paid $101,085.50 and 35 percent of income above $373,650.

Schedule Y-2

For couples that are married but choose to file separately, the Schedule Y-2 tiers apply. The first two tiers, for incomes up to $8,375 and $34,000, are the same as single filers in Schedule X. Incomes from $34,000 to $68,650 lead to tax bills of $4,681.25 plus 25 percent of the amount over $34,000. From $68,650 to $104,625, they paid $13,343.75 and 28 percent of income over $68,650. Incomes between $104,625 and $186,825 were subject to a tax of $23,416.75 and 33 percent of amounts over $104,625. The highest tier in this schedule sits at amounts over $186,825. Taxes for this tier were $50,542.75 plus 35 percent of income of more than $186,825.

Schedule Z

If a taxpayer is filing as the "Head of household", she will use Schedule Z. The 10 percent bracket applied to incomes of $11,950 or less, and those that earned from $11,950 to $45,550 paid $1,195.00 and 15 percent of income over $11,950. From $45,550 to $117,650 in income, taxes were $6,235.00 plus 25 percent of amounts above $45,550. If the filer earns $117,650 to $190,550, the amount due was $24,260.00 and another 28 percent of income over $117,650. For incomes ranging from $190,550 to $373,650, taxes were $44,672.00 plus 33 percent of earnings over $190,550. The highest tier, taxes were $105,095.00 and another 35 percent for amounts of more than $373,650.

About the Author

Kara Page has been a freelance writer and editor since 2007. She maintains several blogs on travel, music, food and more. She is also a contributing writer for Suite101 and has articles published on eHow and Answerbag. Page holds a Bachelor of Music Education degree from the University of North Texas.