Tax Brackets – The Basics for Legal Professionals
More legal professionals search Google for information on tax brackets than nearly any other tax topic.
Whether you’re looking at your own tax liability or advising a client, it’s essential to understand the fundamentals. The federal tax code spans tens of thousands of pages—but tax brackets themselves are not as complicated as you might think.
Let’s break it down simply.
Filing Status Matters
Tax rates vary depending on your filing status:
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
Each status comes with its own set of tax brackets. For simplicity, let’s first look at the 2025 tax brackets for Single Filers:
Tax Rate | Taxable Income (Single Filers) |
10% | Up to $11,925 |
12% | $11,926 to $48,475 |
22% | $48,476 to $103,350 |
24% | $103,351 to $197,300 |
32% | $197,301 to $250,525 |
35% | $250,526 to $626,350 |
37% | Over $626,350 |
Where Most People Get It Wrong
A common misconception is that if someone earns $100,000, their entire income is taxed at, say, 24%. That’s incorrect. The U.S. has a progressive tax system, which means your income is taxed in segments at increasing rates.
Let’s walk through a 2025 example for a single filer earning $100,000:
- First $11,925 taxed at 10% = $1,192.50
- $11,926 to $48,475 taxed at 12% = $4,386.00
- $48,476 to $100,000 taxed at 22% = $11,352.72
Total tax owed: $16,931.22 (not 24% of $100,000, which would have been $24,000)
Planning for Additional Income
Let’s say this professional picks up an additional $15,000 from legal seminars. That income likely falls into the 24% tax bracket, meaning they should set aside $3,600 for income tax purposes.
Also remember: self-employment income is subject to an additional 15.3% in self-employment taxes (Social Security and Medicare), unless offset by other deductions or business strategies. For $15,000, that’s $2,295 in self-employment tax.
Why the Progressive System?
The tax code is designed to ensure that higher earners contribute more, under the assumption they can still maintain a comfortable standard of living—and often benefit from more deductions, such as charitable contributions or investment-related expenses.
But keep in mind: these brackets are adjusted annually for inflation. For instance, the 10% bracket threshold for single filers increased from $11,000 in 2024 to $11,925 in 2025. Every bracket increased accordingly.
A Brief Look at History
In 1913, the year the 16th Amendment was ratified, a single person paid 1% tax on income over $3,000. The highest bracket (7%) only applied to income above $500,000—a fortune at the time.
Fast forward to today, and almost every working professional deals with graduated income tax rates. The complexity has increased, but so have the opportunities to reduce your tax burden through proactive planning.
Before You File, Plan
Before filing your taxes, make sure your return is reviewed by a tax strategist who understands legal professionals. Proper planning can save you tens of thousands of dollars each year, especially when you incorporate business strategies, retirement contributions, and tax-advantaged investments.
Disclaimer
This article provides a general overview and does not cover every tax situation. Tax laws change frequently and special rules, including surtaxes, can apply based on income thresholds or specific circumstances. Always consult with your tax professional—or reach out to our office—for advice tailored to your unique situation.