26 U.S.C. § 1
Section 1 · Tax imposed
Current version, with additions and removals from the December 19, 2014 version.
There is hereby imposed on the taxable income of—
every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
every surviving spouse (as defined in section 2(a)),
If taxable income is: | The tax is: |
|---|---|
Not over $36,900 | 15% of taxable income. |
Over $36,900 but not over $89,150 | $5,535, plus 28% of the excess over $36,900. |
Over $89,150 but not over $140,000 | $20,165, plus 31% of the excess over $89,150. |
Over $140,000 but not over $250,000 | $35,928.50, plus 36% of the excess over $140,000. |
Over $250,000 | $75,528.50, plus 39.6% of the excess over $250,000. |
There is hereby imposed on the taxable income of—
every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
every surviving spouse (as defined in section 2(a)),
If taxable income is: | The tax is: |
|---|---|
Not over $36,900 | 15% of taxable income. |
Over $36,900 but not over $89,150 | $5,535, plus 28% of the excess over $36,900. |
Over $89,150 but not over $140,000 | $20,165, plus 31% of the excess over $89,150. |
Over $140,000 but not over $250,000 | $35,928.50, plus 36% of the excess over $140,000. |
Over $250,000 | $75,528.50, plus 39.6% of the excess over $250,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $29,600 | 15% of taxable income. |
Over $29,600 but not over $76,400 | $4,440, plus 28% of the excess over $29,600. |
Over $76,400 but not over $127,500 | $17,544, plus 31% of the excess over $76,400. |
Over $127,500 but not over $250,000 | $33,385, plus 36% of the excess over $127,500. |
Over $250,000 | $77,485, plus 39.6% of the excess over $250,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $29,600 | 15% of taxable income. |
Over $29,600 but not over $76,400 | $4,440, plus 28% of the excess over $29,600. |
Over $76,400 but not over $127,500 | $17,544, plus 31% of the excess over $76,400. |
Over $127,500 but not over $250,000 | $33,385, plus 36% of the excess over $127,500. |
Over $250,000 | $77,485, plus 39.6% of the excess over $250,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $22,100 | 15% of taxable income. |
Over $22,100 but not over $53,500 | $3,315, plus 28% of the excess over $22,100. |
Over $53,500 but not over $115,000 | $12,107, plus 31% of the excess over $53,500. |
Over $115,000 but not over $250,000 | $31,172, plus 36% of the excess over $115,000. |
Over $250,000 | $79,772, plus 39.6% of the excess over $250,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $22,100 | 15% of taxable income. |
Over $22,100 but not over $53,500 | $3,315, plus 28% of the excess over $22,100. |
Over $53,500 but not over $115,000 | $12,107, plus 31% of the excess over $53,500. |
Over $115,000 but not over $250,000 | $31,172, plus 36% of the excess over $115,000. |
Over $250,000 | $79,772, plus 39.6% of the excess over $250,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $18,450 | 15% of taxable income. |
Over $18,450 but not over $44,575 | $2,767.50, plus 28% of the excess over $18,450. |
Over $44,575 but not over $70,000 | $10,082.50, plus 31% of the excess over $44,575. |
Over $70,000 but not over $125,000 | $17,964.25, plus 36% of the excess over $70,000. |
Over $125,000 | $37,764.25, plus 39.6% of the excess over $125,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $18,450 | 15% of taxable income. |
Over $18,450 but not over $44,575 | $2,767.50, plus 28% of the excess over $18,450. |
Over $44,575 but not over $70,000 | $10,082.50, plus 31% of the excess over $44,575. |
Over $70,000 but not over $125,000 | $17,964.25, plus 36% of the excess over $70,000. |
Over $125,000 | $37,764.25, plus 39.6% of the excess over $125,000. |
There is hereby imposed on the taxable income of—
every estate, and
every trust,
If taxable income is: | The tax is: |
|---|---|
Not over $1,500 | 15% of taxable income. |
Over $1,500 but not over $3,500 | $225, plus 28% of the excess over $1,500. |
Over $3,500 but not over $5,500 | $785, plus 31% of the excess over $3,500. |
Over $5,500 but not over $7,500 | $1,405, plus 36% of the excess over $5,500. |
Over $7,500 | $2,125, plus 39.6% of the excess over $7,500. |
There is hereby imposed on the taxable income of—
every estate, and
every trust,
If taxable income is: | The tax is: |
|---|---|
Not over $1,500 | 15% of taxable income. |
Over $1,500 but not over $3,500 | $225, plus 28% of the excess over $1,500. |
Over $3,500 but not over $5,500 | $785, plus 31% of the excess over $3,500. |
Over $5,500 but not over $7,500 | $1,405, plus 36% of the excess over $5,500. |
Over $7,500 | $2,125, plus 39.6% of the excess over $7,500. |
In the case of any child to whom this subsection applies, the tax imposed by this section shall be equal to the greater of—
the tax imposed by this section without regard to this subsection, or
the sum of—
the tax which would be imposed by this section if the taxable income of such child for the taxable year were reduced by the net unearned income of such child, plus
such child’s share of the allocable parental tax.
This subsection shall apply to any child for any taxable year if—
such child—
has not attained age 18 before the close of the taxable year, or
has attained age 18 before the close of the taxable year and meets the age requirements of section 152(c)(3) (determined without regard to subparagraph (B) thereof), and
whose earned income (as defined in section 911(d)(2)) for such taxable year does not exceed one-half of the amount of the individual’s support (within the meaning of section 152(c)(1)(D) after the application of section 152(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year,
either parent of such child is alive at the close of the taxable year, and
such child does not file a joint return for the taxable year.
For purposes of this subsection—
The term “allocable parental tax” means the excess of—
the tax which would be imposed by this section on the parent’s taxable income if such income included the net unearned income of all children of the parent to whom this subsection applies, over
the tax imposed by this section on the parent without regard to this subsection.
For purposes of clause (i), net unearned income of all children of the parent shall not be taken into account in computing any exclusion, deduction, or credit of the parent.
A child’s share of any allocable parental tax of a parent shall be equal to an amount which bears the same ratio to the total allocable parental tax as the child’s net unearned income bears to the aggregate net unearned income of all children of such parent to whom this subsection applies.
Except as provided in regulations, if the parent does not have the same taxable year as the child, the allocable parental tax shall be determined on the basis of the taxable year of the parent ending in the child’s taxable year.
For purposes of this subsection—
The term “net unearned income” means the excess of—
the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over
the sum of—
the amount in effect for the taxable year under section 63(c)(5)(A) (relating to limitation on standard deduction in the case of certain dependents), plus
the greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i).
The amount of the net unearned income for any taxable year shall not exceed the individual’s taxable income for such taxable year.
For purposes of this subsection, in the case of any child who is a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)), any amount included in the income of such child under sections 652 and 662 during a taxable year shall be considered earned income of such child for such taxable year.
For purposes of this subsection, the parent whose taxable income shall be taken into account shall be—
in the case of parents who are not married (within the meaning of section 7703), the custodial parent (within the meaning of section 152(e)) of the child, and
in the case of married individuals filing separately, the individual with the greater taxable income.
The parent of any child to whom this subsection applies for any taxable year shall provide the TIN of such parent to such child and such child shall include such TIN on the child’s return of tax imposed by this section for such taxable year.
If—
any child to whom this subsection applies has gross income for the taxable year only from interest and dividends (including Alaska Permanent Fund dividends),
such gross income is more than the amount described in paragraph (4)(A)(ii)(I) and less than 10 times the amount so described,
no estimated tax payments for such year are made in the name and TIN of such child, and no amount has been deducted and withheld under section 3406, and
the parent of such child (as determined under paragraph (5)) elects the application of subparagraph (B),
such child shall be treated (other than for purposes of this paragraph) as having no gross income for such year and shall not be required to file a return under section 6012.
In the case of a parent making the election under this paragraph—
the gross income of each child to whom such election applies (to the extent the gross income of such child exceeds twice the amount described in paragraph (4)(A)(ii)(I)) shall be included in such parent’s gross income for the taxable year,
the tax imposed by this section for such year with respect to such parent shall be the amount equal to the sum of—
the amount determined under this section after the application of clause (i), plus
for each such child, 10 percent of the lesser of the amount described in paragraph (4)(A)(ii)(I) or the excess of the gross income of such child over the amount so described, and
any interest which is an item of tax preference under section 57(a)(5) of the child shall be treated as an item of tax preference of such parent (and not of such child).
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph.
In the case of any child to whom this subsection applies, the tax imposed by this section shall be equal to the greater of—
the tax imposed by this section without regard to this subsection, or
the sum of—
the tax which would be imposed by this section if the taxable income of such child for the taxable year were reduced by the net unearned income of such child, plus
such child’s share of the allocable parental tax.
This subsection shall apply to any child for any taxable year if—
such child—
has not attained age 18 before the close of the taxable year, or
has attained age 18 before the close of the taxable year and meets the age requirements of section 152(c)(3) (determined without regard to subparagraph (B) thereof), and
whose earned income (as defined in section 911(d)(2)) for such taxable year does not exceed one-half of the amount of the individual’s support (within the meaning of section 152(c)(1)(D) after the application of section 152(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year,
either parent of such child is alive at the close of the taxable year, and
such child does not file a joint return for the taxable year.
For purposes of this subsection—
The term “allocable parental tax” means the excess of—
the tax which would be imposed by this section on the parent’s taxable income if such income included the net unearned income of all children of the parent to whom this subsection applies, over
the tax imposed by this section on the parent without regard to this subsection.
For purposes of clause (i), net unearned income of all children of the parent shall not be taken into account in computing any exclusion, deduction, or credit of the parent.
A child’s share of any allocable parental tax of a parent shall be equal to an amount which bears the same ratio to the total allocable parental tax as the child’s net unearned income bears to the aggregate net unearned income of all children of such parent to whom this subsection applies.
Except as provided in regulations, if the parent does not have the same taxable year as the child, the allocable parental tax shall be determined on the basis of the taxable year of the parent ending in the child’s taxable year.
For purposes of this subsection—
The term “net unearned income” means the excess of—
the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over
the sum of—
the amount in effect for the taxable year under section 63(c)(5)(A) (relating to limitation on standard deduction in the case of certain dependents), plus
the greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i).
The amount of the net unearned income for any taxable year shall not exceed the individual’s taxable income for such taxable year.
For purposes of this subsection, in the case of any child who is a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)), any amount included in the income of such child under sections 652 and 662 during a taxable year shall be considered earned income of such child for such taxable year.
For purposes of this subsection, the parent whose taxable income shall be taken into account shall be—
in the case of parents who are not married (within the meaning of section 7703), the custodial parent (within the meaning of section 152(e)) of the child, and
in the case of married individuals filing separately, the individual with the greater taxable income.
The parent of any child to whom this subsection applies for any taxable year shall provide the TIN of such parent to such child and such child shall include such TIN on the child’s return of tax imposed by this section for such taxable year.
If—
any child to whom this subsection applies has gross income for the taxable year only from interest and dividends (including Alaska Permanent Fund dividends),
such gross income is more than the amount described in paragraph (4)(A)(ii)(I) and less than 10 times the amount so described,
no estimated tax payments for such year are made in the name and TIN of such child, and no amount has been deducted and withheld under section 3406, and
the parent of such child (as determined under paragraph (5)) elects the application of subparagraph (B),
such child shall be treated (other than for purposes of this paragraph) as having no gross income for such year and shall not be required to file a return under section 6012.
In the case of a parent making the election under this paragraph—
the gross income of each child to whom such election applies (to the extent the gross income of such child exceeds twice the amount described in paragraph (4)(A)(ii)(I)) shall be included in such parent’s gross income for the taxable year,
the tax imposed by this section for such year with respect to such parent shall be the amount equal to the sum of—
the amount determined under this section after the application of clause (i), plus
for each such child, 10 percent of the lesser of the amount described in paragraph (4)(A)(ii)(I) or the excess of the gross income of such child over the amount so described, and
any interest which is an item of tax preference under section 57(a)(5) of the child shall be treated as an item of tax preference of such parent (and not of such child).
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph.
In the case of a taxable year beginning after December 31, 2017—
subsection (i) shall not apply, and
this section (other than subsection (i)) shall be applied as provided in paragraphs (2) through (6).
If taxable income is: | The tax is: |
|---|---|
Not over $19,050 | 10% of taxable income. |
Over $19,050 but not over $77,400 | $1,905, plus 12% of the excess over $19,050. |
Over $77,400 but not over $165,000 | $8,907, plus 22% of the excess over $77,400. |
Over $165,000 but not over $315,000 | $28,179, plus 24% of the excess over $165,000. |
Over $315,000 but not over $400,000 | $64,179, plus 32% of the excess over $315,000. |
Over $400,000 but not over $600,000 | $91,379, plus 35% of the excess over $400,000. |
Over $600,000 | $161,379, plus 37% of the excess over $600,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $13,600 | 10% of taxable income. |
Over $13,600 but not over $51,800 | $1,360, plus 12% of the excess over $13,600. |
Over $51,800 but not over $82,500 | $5,944, plus 22% of the excess over $51,800. |
Over $82,500 but not over $157,500 | $12,698, plus 24% of the excess over $82,500. |
Over $157,500 but not over $200,000 | $30,698, plus 32% of the excess over $157,500. |
Over $200,000 but not over $500,000 | $44,298, plus 35% of the excess over $200,000. |
Over $500,000 | $149,298, plus 37% of the excess over $500,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $9,525 | 10% of taxable income. |
Over $9,525 but not over $38,700 | $952.50, plus 12% of the excess over $9,525. |
Over $38,700 but not over $82,500 | $4,453.50, plus 22% of the excess over $38,700. |
Over $82,500 but not over $157,500 | $14,089.50, plus 24% of the excess over $82,500. |
Over $157,500 but not over $200,000 | $32,089.50, plus 32% of the excess over $157,500. |
Over $200,000 but not over $500,000 | $45,689.50, plus 35% of the excess over $200,000. |
Over $500,000 | $150,689.50, plus 37% of the excess over $500,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $9,525 | 10% of taxable income. |
Over $9,525 but not over $38,700 | $952.50, plus 12% of the excess over $9,525. |
Over $38,700 but not over $82,500 | $4,453.50, plus 22% of the excess over $38,700. |
Over $82,500 but not over $157,500 | $14,089.50, plus 24% of the excess over $82,500. |
Over $157,500 but not over $200,000 | $32,089.50, plus 32% of the excess over $157,500. |
Over $200,000 but not over $300,000 | $45,689.50, plus 35% of the excess over $200,000. |
Over $300,000 | $80,689.50, plus 37% of the excess over $300,000. |
If taxable income is: | The tax is: |
|---|---|
Not over $2,550 | 10% of taxable income. |
Over $2,550 but not over $9,150 | $255, plus 24% of the excess over $2,550. |
Over $9,150 but not over $12,500 | $1,839, plus 35% of the excess over $9,150. |
Over $12,500 | $3,011.50, plus 37% of the excess over $12,500. |
Any reference in this title to a rate of tax under subsection (c) shall be treated as a reference to the corresponding rate bracket under subparagraph (C) of this paragraph, except that the reference in section 3402(q)(1) to the third lowest rate of tax applicable under subsection (c) shall be treated as a reference to the fourth lowest rate of tax under subparagraph (C).
The tables contained in paragraph (2) shall apply without adjustment for taxable years beginning after December 31, 2017, and before January 1, 2019.
For taxable years beginning after December 31, 2018, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in paragraph (2) in the same manner as under paragraphs (1) and (2) of subsection (f) (applied without regard to clauses (i) and (ii) of subsection (f)(2)(A)), except that in prescribing such tables—
solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins, subsection (f)(3) shall be applied by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof,
subsection (f)(7)(B) shall apply to any unmarried individual other than a surviving spouse or head of household, and
subsection (f)(8) shall not apply.
Section 1(h)(1) shall be applied—
by substituting “below the maximum zero rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 25 percent” in subparagraph (B)(i), and
by substituting “below the maximum 15-percent rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 39.6 percent” in subparagraph (C)(ii)(I).
For purposes of applying section 1(h) with the modifications described in subparagraph (A)—
The maximum zero rate amount shall be—
in the case of a joint return or surviving spouse, $77,200,
in the case of an individual who is a head of household (as defined in section 2(b)), $51,700,
in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under subclause (I), and
in the case of an estate or trust, $2,600.
The maximum 15-percent rate amount shall be—
in the case of a joint return or surviving spouse, $479,000 (½ such amount in the case of a married individual filing a separate return),
in the case of an individual who is the head of a household (as defined in section 2(b)), $452,400,
in the case of any other individual (other than an estate or trust), $425,800, and
in the case of an estate or trust, $12,700.
In the case of any taxable year beginning after 2018, each of the dollar amounts in clauses (i) and (ii) of subparagraph (B) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under subsection (f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any increase under this subparagraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.
Section 15 shall not apply to any change in a rate of tax by reason of this subsection.
1 See References in Text note below.