2014 Predicted Inflation-Based Tax System

The specific tax brackets’ value may change due to inflation. Every year, the federal income tax brackets are expanded based on inflation.

Tax Brackets 2014 may also be affected by the President’s budget proposal. Instead of using inflation in adjusting the tax brackets, the tax brackets will be adjusted based on chained CPI (Consumer Price Index) inflation. According to tax experts, using the chained CPI inflation will result to a lower expansion of tax brackets basically because the inflation value is lower using the chained CPI inflation value. This value is also considered by lawmakers as a reform which can possibly lower the country’s federal deficit.

To give you an idea of the predicted tax brackets and rates in 2014, here is the possible Tax Brackets 2014. The second column is the tax bracket using the chained CPI inflation and the third tax bracket shows the income ranges using the regular inflation rate.

For Taxpayers With Single Filing Status

Tax Rate Tax Bracket (Chained CPI Inflation) Tax Brackets
10% - 0 - $9,025 0 - $9,075
15% - $9,026 - $36,625 $9,076 - $36,900
25% - $36,626 - $88,725 $36,901 - $89,350
28% - $88,726 - $185,075 $89,351 - $186,350
33% - $18,076 - $402,325 $186,351 - $405,100
35% - $402,326 –404,000 $405,101 - $406,750
39% - $404,001 and up $406,751 and up

For Taxpayers With Married Filing Jointly Status

Tax Rate Tax Bracket (Chained CPI Inflation) Tax Brackets
10% - 0 - $18,025 0 - $18,150
15% - $18,026 - $73,225 $18,151 - $73,800
25% - $73,226 - $147,875 $73,801 - $148,850
28% - $147,876 - $225,275 $148,851 - $226,850
33% - $225,276 - $402,325 $226,851 –$405,100
35% - $402,326 - $454,500 $405,101 – $457,600
39.6% - $454,501 and up $457,601 and up

For Taxpayers With Married Filing Separately Status

Tax Rate Tax Bracket (Chained CPI Inflation) Tax Brackets
10% - 0 - $9,025 0 –$9,075
15% - $9,026 - $36,625 $9,076 – $36,900
25% - $36,626 - $73,925 $36,901 – $74,425
28% - $73,926 - $112,650 $74,426 – $113,425
33% - $112,651 - $201,175 $113,426 – $202,550
35% - $201,176 –227,250 $202,551 – $228,800
39.6% - $227,251 and up $228,801 and up

Head Of Household Filers

Tax Rate Tax Bracket (Chained CPI Inflation) Tax Brackets
10% - 0 - $12,875 0 –$12,950
15% - $12,876 - $49,075 $12,951 – $49,400
25% - $49,076 - $126,700 $49,401 –$127,550
28% - $126,701 - $205,175 $127,551 –$206,600
33% - $205,176 - $402,325 $206,601 –$405,100
35% - $402,326 - $429,250 $405,101 –$432,200
39.6% - $429,251 and up $432,201 and up

The tables shown above are not yet the fixed brackets and rates that will be applied, but only a prediction for the Tax Brackets 2014.

Predictions And Changes

Aside from the possible change of the inflation value that will be used for the 2014 tax system, another important factor that will affect taxpayer’s tax return is the Health Insurance Premium Tax Credit. This tax credit as well as other health insurance subsidies will all be effective starting January 1, 2014.

According to tax experts, indexing of the 2014 tax brackets can probably provide modest savings for 2014 taxpayers. Individual filers will be imposed lesser income tax for the same income level in 2014 than in 2013. This is also the same for married taxpayers filing jointly. These income tax savings will be the result of the inflation-adjusted tax rate brackets.

Just like in 2013 tax system, the permanent tax structure applied this year will also be carried out in 2014. This means that higher income earners will pay higher taxes. Through the ATRA or the American Taxpayer Relief Act of 2012, the tax brackets for the coming years will have an additional higher tax bracket with a tax rate of 39.6%. However, this tax structure may also change in the future if lawmakers pass new laws amending the current tax system.


With the end of the year nearing, a lot of taxpayers are now starting to organize their files and documents in order to prepare for the filing of tax returns in April. Aside from the current tax rates and brackets, a lot of people are also wondering today what will be the expected tax brackets and rates next year.

Tax Brackets 2014 will be the result of the various changes and laws passed recently by lawmakers. Due to the fiscal cliff deal, the tax bracket structure will now be permanent. This means that the current tax bracket and tax rate system will also be the same structure that will be applied for next year’s taxing system.