Tax imposed

There is hereby imposed on the taxable income of— 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 head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% 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. There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% 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. There is hereby imposed on the taxable income of every married individual (as defined in section 7703) who does not make a single return jointly with his spouse under section 6013, a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $18,45015% 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— 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. Not later than December 15 of 1993, and each subsequent calendar year, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in subsections (a), (b), (c), (d), and (e) with respect to taxable years beginning in the succeeding calendar year. The table which under paragraph (1) is to apply in lieu of the table contained in subsection (a), (b), (c), (d), or (e), as the case may be, with respect to taxable years beginning in any calendar year shall be prescribed— except as provided in paragraph (8), by increasing the minimum and maximum dollar amounts for each bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, determined— For purposes of this subsection— The cost-of-living adjustment for any calendar year is the percentage (if any) by which— The amount determined under this clause is the amount obtained by dividing— For purposes of any provision of this title which provides for the substitution of a year after 2016 for “2016” in subparagraph (A)(ii), subparagraph (A) shall be applied by substituting “the C-CPI-U for calendar year 2016” for “the CPI for calendar year 2016” and all that follows in clause (ii) thereof. For purposes of paragraph (3), the CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year. For purposes of paragraph (4), the term “Consumer Price Index” means the last Consumer Price Index for all-urban consumers published by the Department of Labor. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 1986 shall be used. For purposes of this subsection— The term “C-CPI-U” means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). The values of the Chained Consumer Price Index for All Urban Consumers taken into account for purposes of determining the cost-of-living adjustment for any calendar year under this subsection shall be the latest values so published as of the date on which such Bureau publishes the initial value of the Chained Consumer Price Index for All Urban Consumers for the month of August for the preceding calendar year. The C-CPI-U for any calendar year is the average of the C-CPI-U as of the close of the 12-month period ending on August 31 of such calendar year. If any increase determined under paragraph (2)(A), section 63(c)(4), section 68(b)(2) 11 See References in Text note below. or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. In the case of a married individual filing a separate return, subparagraph (A) (other than with respect to sections 63(c)(4) and 151(d)(4)(A)) shall be applied by substituting “$25” for “$50” each place it appears. With respect to taxable years beginning after December 31, 2003, in prescribing the tables under paragraph (1)— 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 sum of— This subsection shall apply to any child for any taxable year if— such child— For purposes of this subsection— The term “allocable parental tax” means the excess of— 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 sum of— 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— 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— In the case of a parent making the election under this paragraph— the tax imposed by this section for such year with respect to such parent shall be the amount equal to the sum of— The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph. If a taxpayer has a net capital gain for any taxable year, the tax imposed by this section for such taxable year shall not exceed the sum of— a tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of— the lesser of— 0 percent of so much of the adjusted net capital gain (or, if less, taxable income) as does not exceed the excess (if any) of— 15 percent of the lesser of— the excess of— 25 percent of the excess (if any) of— the excess (if any) of— For purposes of this subsection, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii). For purposes of this subsection, the term “adjusted net capital gain” means the sum of— net capital gain (determined without regard to paragraph (11)) reduced (but not below zero) by the sum of— For purposes of this subsection, the term “28-percent rate gain” means the excess (if any) of— the sum of— the sum of— For purposes of this subsection— The terms “collectibles gain” and “collectibles loss” mean gain or loss (respectively) from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income and such loss is taken into account in computing taxable income. For purposes of subparagraph (A), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible. Rules similar to the rules of section 751 shall apply for purposes of the preceding sentence. For purposes of this subsection— The term “unrecaptured section 1250 gain” means the excess (if any) of— the excess (if any) of— The amount described in subparagraph (A)(i) from sales, exchanges, and conversions described in section 1231(a)(3)(A) for any taxable year shall not exceed the net section 1231 gain (as defined in section 1231(c)(3)) for such year. For purposes of this subsection, the term “section 1202 gain” means the excess of— If any amount is treated as ordinary income under section 1231(c), such amount shall be allocated among the separate categories of net section 1231 gain (as defined in section 1231(c)(3)) in such manner as the Secretary may by forms or regulations prescribe. The Secretary may prescribe such regulations as are appropriate (including regulations requiring reporting) to apply this subsection in the case of sales and exchanges by pass-thru entities and of interests in such entities. For purposes of this subsection, the term “pass-thru entity” means— For purposes of this subsection, the term “net capital gain” means net capital gain (determined without regard to this paragraph) increased by qualified dividend income. For purposes of this paragraph— The term “qualified dividend income” means dividends received during the taxable year from— Such term shall not include— Such term shall not include any dividend on any share of stock— Except as otherwise provided in this paragraph, the term “qualified foreign corporation” means any foreign corporation if— A foreign corporation not otherwise treated as a qualified foreign corporation under clause (i) shall be so treated with respect to any dividend paid by such corporation if the stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States. Such term shall not include— Rules similar to the rules of section 904(b)(2)(B) shall apply with respect to the dividend rate differential under this paragraph. Qualified dividend income shall not include any amount which the taxpayer takes into account as investment income under section 163(d)(4)(B). If a taxpayer to whom this section applies receives, with respect to any share of stock, qualified dividend income from 1 or more dividends which are extraordinary dividends (within the meaning of section 1059(c)), any loss on the sale or exchange of such share shall, to the extent of such dividends, be treated as long-term capital loss. A dividend received from a regulated investment company or a real estate investment trust shall be subject to the limitations prescribed in sections 854 and 857. In the case of taxable years beginning after December 31, 2000— For purposes of this paragraph, the initial bracket amount is— In prescribing the tables under subsection (f) which apply with respect to taxable years beginning in calendar years after 2003— The tables under subsections (a), (b), (c), (d), and (e) shall be applied— In the case of taxable years beginning after December 31, 2012— the rate of tax under subsections (a), (b), (c), and (d) on a taxpayer’s taxable income in the highest rate bracket shall be 35 percent to the extent such income does not exceed an amount equal to the excess of— For purposes of this paragraph, the term “applicable threshold” means— For purposes of this paragraph, with respect to taxable years beginning in calendar years after 2013, each of the dollar amounts under clauses (i), (ii), and (iii) of subparagraph (B) shall be adjusted in the same manner as under paragraph (1)(C)(i), except that subsection (f)(3)(A)(ii) shall be applied by substituting “2012” for “2016”. The Secretary shall adjust the tables prescribed under subsection (f) to carry out this subsection. In the case of a taxable year beginning after December 31, 2017— The following table shall be applied in lieu of the table contained in subsection (a): If taxable income is:The tax is: Not over $19,05010% 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. The following table shall be applied in lieu of the table contained in subsection (b): If taxable income is:The tax is: Not over $13,60010% 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. The following table shall be applied in lieu of the table contained in subsection (c): If taxable income is:The tax is: Not over $9,52510% 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. The following table shall be applied in lieu of the table contained in subsection (d): If taxable income is:The tax is: Not over $9,52510% 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. The following table shall be applied in lieu of the table contained in subsection (e): If taxable income is:The tax is: Not over $2,55010% 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— Section 1(h)(1) shall be applied— For purposes of applying section 1(h) with the modifications described in subparagraph (A)— The maximum zero rate amount shall be— The maximum 15-percent rate amount shall be— 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— Section 15 shall not apply to any change in a rate of tax by reason of this subsection.