Clarification on Income Taxes from Rentals (from RocketMortgage?)

[Leo Kane]

Hi, I found this article on Rocket Mortgage about taxation on rental income: https://www.rocketmortgage.com/learn/how-is-rental-income-ta...

There is one more line at the bottom that says $174K + 37% for 578K+ for single filers. Is this true? I have seen 37%, but this is the only source mentioning a flat cost for each bracket. If someone earned 578K, then they would be taxed 174K and then 37%, so 174 + 213 = 387 = only 191K in net. This seems ridiculously high to me (I know that there are tons of tax benefits also but if you could please clarify, then that would be appreciated)!

Thanks!

[Michael Plaks]

Quote from @Leo Kane:

Quote from @Michael Plaks:

@Leo Kane

Need to read slower  ;)

"...plus 37% of anything over previous max income" - meaning anything over $578k

Sorry, I still do not understand what that means. Could you help me understand?

If you make $578k, you pay $174k

If you make $579k, you pay $174k plus 37% of the extra $1,000 = $174,370