1998 Federal Income Tax Rates

Here is a list of the 1998 income tax rates. Please not that once a new rate is reached, the income earned at the lower rate continues to be taxed at the lower rate. In other words (for married filing joint) - your income is $45,350

Yes - you are in a a 28% bracket, however -

The 15% bracket continues to apply to the first $42,350

The 28% bracket applies only to $3,000

In other words - do not be afraid of an increase in your tax bracket. You will not pay the increased rate on the entire earnings. Nor is the income tax structure designed to place you in a 100% bracket. Therefore - do not be afraid to earn or make money.

Soemtimes the taxes may feel like you are paying all your money earned. It is important to hold all costs as low as possible. Taxes included. However - make wise choices in your income potential and your cost containment strategies. Tax cost containment is more complex because of the risks of penalties, interest and criminal charges. Tax cos containment is more complex because of the risk from the authority of the Internal Revenue Service to investigate, charge, collect and seize assets without any oversight supervision.

Tax cost containment is mandatory. Bob Parrish CPA, this web site or your current CPA.

Single Individuals
Starting with taxable income of:	Your Rate is:
$0	15%
$25,350	28%
$61,400	31%
$128,100	36%
$278,450	39.6%

Married Individuals - Jointly
Starting with taxable income of:	Your Rate is:
$0	15%
$42,350	28%
$102,300	31%
$155,950	36%
$278,450	39.6%

Married Individuals - Separately
Starting with taxable income of:	Your Rate is:
$0	15%
$21,175	28%
$51,150	31%
$77,975	36%
$139,225	39.6%

Head of Household
Starting with taxable income of:	Your Rate is:
$0	15%
$33,950	28%
$87,700	31%
$142,000	36%
$278,450	39.6%