Personal exemption (United States)

Under United States tax law, a personal exemption is an amount that a resident taxpayer is entitled to claim as a tax deduction against personal income in calculating taxable income and consequently federal income tax. It has the effect of reducing income tax payable, even to tax-free level, but not so as to result in a tax refund. In 2015 the personal exemption amount was US$4.000. The exemption for 2016 is $4,050, though the actual tax benefit depends on the taxpayer's marginal tax rate. The personal exemption amount is adjusted each year for inflation.