Individual Income Tax Rates: 1989 through 2007

Congressional research reportOct 4, 2006

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Prepared for Members and Committees of Congress

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Over the past several years there have been five major changes in federal individual marginal

income tax rates. The Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1990,

the Omnibus Budget Reconciliation Act of 1993, the Economic Growth and Tax Relief

Reconciliation Act of 2001, the Jobs and Growth Tax Relief Reconciliation Act of 2003, and the

Working Families Tax Relief Act of 2004 all changed the marginal income tax rate structure. The

marginal income tax rate structure for 2006 consists of six statutory marginal rates: 10%, 15%,

25%, 28%, 33%, and 35%.

Although these acts changed the tax rate structure, they maintained, in a slightly modified form,

the policy of tax indexation introduced in 1981. Under current law, the personal exemptions,

standard deductions, earned income tax credit, the personal exemption phaseout threshold, the

itemized deduction limitation threshold, the tax rate brackets, and other components of the tax

structure are indexed for inflation. Tax indexation helps prevent inflation from producing

automatic tax increases and unintended changes in the distribution of the tax burden.

This report is updated annually to reflect the most recent indexation adjustments.

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Tax Reform Act of 1986 .................................................................................................................. 1

Omnibus Budget Reconciliation Act of 1990.................................................................................. 2

Omnibus Budget Reconciliation Act of 1993.................................................................................. 3

Economic Growth and Tax Relief Reconciliation Act of 2001 ....................................................... 4

Jobs and Growth Tax Relief Reconciliation Act of 2003 ................................................................ 5

The Working Families Tax Relief Act of 2004................................................................................ 5

Effects of Inflation on Real Income Tax Liabilities ........................................................................ 5

The Mechanics of Indexation .......................................................................................................... 6

Tax Rate Schedules for 1989 Through 2007 ................................................................................... 7

Table 1. Tax Rates, Personal Exemptions, and Standard Deductions, 1989.................................... 7

Table 2. Tax Rates, Personal Exemptions, and Standard Deductions, 1990.................................... 8

Table 3. Tax Rates, Personal Exemptions, and Standard Deductions, 1991.................................... 9

Table 4. Tax Rates, Personal Exemptions, and Standard Deductions, 1992.................................... 9

Table 5. Tax Rates, Personal Exemptions, and Standard Deductions, 1993.................................. 10

Table 6. Tax Rates, Personal Exemptions, and Standard Deductions, 1994...................................11

Table 7. Tax Rates, Personal Exemptions, and Standard Deductions, 1995.................................. 12

Table 8. Tax Rates, Personal Exemptions, and Standard Deductions, 1996.................................. 12

Table 9. Tax Rates, Personal Exemptions, and Standard Deductions, 1997.................................. 13

Table 10. Tax Rates, Personal Exemptions, and Standard Deductions, 1998................................ 14

Table 11. Tax Rates, Personal Exemptions, and Standard Deductions, 1999................................ 15

Table 12. Tax Rates, Personal Exemptions, and Standard Deductions, 2000................................ 16

Table 13. Tax Rates, Personal Exemptions, and Standard Deductions, 2001................................ 17

Table 14. Personal Exemptions and Standard Deductions, 2002 .................................................. 17

Table 15. Marginal Income Tax Rates, 2002 ................................................................................. 18

Table 16. Marginal Income Tax Rates, 2003 Under Prior Law ..................................................... 18

Table 17. Personal Exemptions and Standard Deductions, Limitation on Itemized

Deductions, and the Personal Exemption Phaseout, 2003 ......................................................... 19

Table 18. Marginal Income Tax Rates, 2003 ................................................................................. 20

Table 19. Personal Exemptions and Standard Deductions, Limitation on Itemized

Deductions, and the Personal Exemption Phaseout, 2004 ......................................................... 20

Table 20. Marginal Income Tax Rates, 2004 ................................................................................. 21

Table 21. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions

and the Personal Exemption Phase Out Thresholds, 2005 ......................................................... 21

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Table 22. Marginal Income Tax Rates, 2005 ................................................................................. 22

Table 23. 2005 EITC Indexed Levels............................................................................................ 22

Table 24. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions

and the Personal Exemption Phase Out Thresholds, 2006 ......................................................... 23

Table 25. Marginal Income Tax Rates, 2006 ................................................................................. 23

Table 26. 2006 EITC Indexed Levels............................................................................................ 24

Table 27. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions

and the Personal Exemption Phase Out Thresholds, 2007 ......................................................... 24

Table 28. Marginal Income Tax Rates, 2007 ................................................................................. 25

Author Contact Information .......................................................................................................... 26

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ver the past several years, there have been five major changes in federal individual

marginal income tax rates. The Tax Reform Act of 1986 (TRA86) created an individual

marginal income tax rate structure that consisted of two statutory tax rates, 15% and 28%.

However, TRA86 also legislated a 5% surcharge on the taxable income of certain upper-income

households, which effectively created a third marginal tax rate of 33%.

The Omnibus Budget Reconciliation Act of 1990 (OBRA90) eliminated the 5-percent surcharge

and created a marginal tax rate structure consisting of three statutory marginal tax rates of 15%,

28%, and 31%. However, OBRA90 also contained a provision that limited the amount of

itemized deductions that upper-income households could claim and a provision that modified the

phaseout of the tax benefits of personal exemptions for upper-income households.

The Omnibus Budget Reconciliation Act of 1993 (OBRA93) added two new marginal income tax

rates, 36% and 39.6%, at the upper end of the income scale. It also delayed indexation of the two

new tax brackets for one year. In addition, OBRA93 made permanent the limitation on itemized

deductions and the phaseout of the tax benefits of the personal exemption.

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001) created a new

10% marginal income tax bracket. It also reduced the top four marginal tax rates to 25%, 28%,

33%, and 35% with the changes phased-in over the period 2001 through 2006.

The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA 2003) accelerated, to

2003, the phase-in of the tax rate reductions originally enacted in EGTRRA 2001.

The Working Families Tax Relief Act of 2004 extended through 2010 most of the tax changes

enacted as part of the 2003 Act.

The following sections of this report describe the changes in the marginal tax rate structure over

the past several years. In addition, the reasons for tax indexation and the mechanics of tax

indexation are briefly explained. The final section contains the tax rate schedules, exemption

amounts, and standard deductions for joint, single, and head of household returns for tax years

1989 through 2007.1

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Prior to 1986 there were approximately 14 marginal income tax rates ranging from 11% to 50%.

For tax years after 1987, the Tax Reform Act reduced the marginal tax rate structure to two

statutory tax rates of 15% and 28%.

Although the Tax Reform Act specified that there were only two statutory individual marginal

income tax rates, it also adopted a 5% surcharge on the taxable income of certain upper-income

households. This surcharge effectively created a third marginal tax rate of 33% (28% statutory

marginal tax rate plus 5% surcharge) and produced an anomaly in the tax code that came to be

known as the tax rate “bubble.”

This report concentrates on statutory marginal income tax rates, which are the rates of tax applicable on an increment

of taxable income. Average tax rates, on the other hand, are tax liability expressed as a percentage of income.

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Because the surcharge was phased out as incomes increased, marginal tax rates rose to 33% but

then fell back to 28%. Hence, the tax rate “bubble.” The surcharge was adopted so that the 1986

Act would not change the distribution of the income tax burden relative to its distribution under

pre-1986 tax law, would meet the needed revenue targets, and yet allow the 1986 Act to be

characterized as having only two statutory marginal tax rates.

The surcharge was designed to phase out the tax benefits of the 15% tax bracket and the tax

benefits of the personal exemptions for upper-income households. For joint returns in 1990, the

phaseout of the tax benefits of the 15% tax bracket started when taxable income exceeded

$78,400 and ended when taxable income reached $162,770. For single returns, the phaseout of

the 15% tax bracket occurred over the taxable income range of $47,050 to $97,620. For heads of

households, the phaseout occurred over the taxable income range of $67,200 to $134,930.

To demonstrate how the 5% surcharge worked to “phase out” the tax benefits of the 15% tax

bracket consider the following example based on joint returns for 1990. The difference between

taxing the first $32,450 of taxable income at 28% instead of 15% was $4,218.50. Five percent of

the difference between the upper and lower phaseout limits was also $4,218.50 ($162,770 less

$78,400 multiplied by 5%). Hence, assessing the 5% surcharge on taxable income between

$78,400 and $162,770 was equivalent to having taxed the first $32,450 of taxable income at 28

rather than 15%. The 5% surcharge produced identical results for both single and head of

household returns. This surcharge effectively raised the marginal tax rate on taxable income

within these ranges from 28% to 33% (28% statutory marginal tax rate plus 5% surcharge).

A 5% surcharge was also used to phase out the tax benefits of the personal exemption for upperincome households. In 1990, each personal exemption was worth $2,050 and produced a tax

savings for a household in the 28% marginal tax rate bracket of $574 ($2,050 times 28%). To

recapture this tax savings a 5% surcharge was assessed against $11,480 of taxable income for

each personal exemption claimed. A 5% surcharge against this amount of taxable income

increased tax liability by $574 ($11,480 times 5%), which exactly offset the tax savings from the

personal exemption.

The phaseout of personal exemptions started immediately after the phaseout of the 15% tax

bracket and the phaseout of each exemption occurred sequentially. This meant that the taxable

income range over which the 5% surcharge applied depended on the number of personal

exemptions claimed on the tax return. For example, on a joint return claiming two personal

exemptions the 5% surcharge would apply to taxable income between $162,770 and $185,730

($162,770 plus two times $11,480). On a joint return with four personal exemptions, the 5%

surcharge would apply to taxable income between $162,770 and $208,690 ($162,770 plus four

times $11,480).

As was also the case with the phaseout of the tax benefits from the 15% tax bracket, the phaseout

of the personal exemption effectively raised the statutory marginal tax rate from 28% to 33%

(28% regular tax rate plus 5% surcharge). As noted, the income range over which the effective

marginal tax rate was 33% depended on the number of personal exemptions claimed.

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The Omnibus Budget Reconciliation Act of 1990 (OBRA90) created a three-tiered statutory

marginal income tax rate structure with rates of 15%, 28%, and 31%, effective in tax years

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beginning in 1991. (The tax rate structure for 1991 is shown in Table 5.) OBRA90 also

eliminated the tax bubble by repealing the 5% surcharge that was instituted under the Tax Reform

Act of 1986 (TRA86). Although the 5% surcharge was repealed, it was replaced with a limitation

on itemized deductions and a new approach to phasing out the tax benefits of the personal

exemption for upper-income households.

OBRA90 also reintroduced a tax-rate differential on capital gains income. Provisions in the 1986

Act had eliminated the preferential tax treatment of capital gains income and hence, capital gains

income was treated as ordinary income and taxed at regular rates of up to 33%. OBRA90

contained a provision which limited the tax on capital gains income to a maximum of 28%. This

provision was effective starting in tax year 1991.

The OBRA90 limitation on itemized deductions worked as follows. For tax years starting in

1991, otherwise allowable deductions were reduced by 3% of the amount by which a taxpayer’s

adjusted gross income (AGI) exceeded $100,000 (except in the case of married couples filing

separate returns where the AGI limit was $50,000). For example, in 1991, if a taxpayer’s AGI

were $110,000, then his otherwise allowable itemized deductions would be reduced by $300

($110,000 less $100,000 times 3%). This provision effectively raised the marginal income tax rate

of those taxpayers affected by approximately 1 percentage point. (A dollar of income in excess of

$100,000 was taxed as if it were $1.03, since in addition to the extra dollar of income, the

taxpayer lost .03 of itemized deductions.)

Allowable deductions for medical expenses, casualty and theft losses, and investment interest

were not subject to this limitation. For tax years after 1991, the $100,000 threshold was indexed

for inflation. This provision was originally scheduled to expire after tax year 1995.

The phaseout of the tax benefits of the personal exemption worked as follows. Each personal

exemption was phased out by a factor of 2% for each $2,500 (or fraction of $2,500) by which a

taxpayer’s AGI exceeded a given threshold amount. In 1991, the threshold amount for a joint

return was $150,000; for a single return the threshold was $100,000; and for heads of households

the threshold was $125,000.

For example, in 1991, a joint household whose AGI was $183,000 would lose 28% of their total

personal exemptions claimed. The AGI amount in excess of the threshold in this instance would

be $33,000, $183,000 AGI less $150,000 threshold limit. The $33,000 excess divided by $2,500

would produce a factor of 13.2 which when rounded up would equal 14. This figure is multiplied

by 2% to arrive at the final disallowance amount of 28%. Hence, if the family had claimed two

personal exemptions, which at $2,150 each would total $4,300, they would only be allowed to

deduct $3,096 ($4,300 total personal exemptions less the $1,204 disallowance, which is 28% of

the total).

For tax years after 1991, these threshold amounts were indexed for inflation. This provision was

also scheduled to expire after tax year 1995.

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The Omnibus Budget Reconciliation Act of 1993 (OBRA93) made several changes in the

individual marginal income tax rate structure. First, it added two new marginal tax rates, 36 and

39.6%, at the upper-end of the income spectrum. (The 39.6% marginal tax rate bracket was

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created by imposing a “10% surtax” on high-income taxpayers.) Although OBRA93 was enacted

in August of 1993, the increase in the top marginal tax rates was made effective retroactively to

January 1, 1993. (Affected taxpayers, however, were not assessed penalties for underpayment of

1993 taxes resulting from the tax rate increase and they were also allowed to pay any additional

1993 taxes in three equal installments over a two-year period.)

Second, OBRA93 delayed indexation of the new top marginal income tax brackets for one year.

Hence, the nominal dollar tax brackets for the 36% and 39.6% marginal tax rates will remain at

the same level for both tax year 1993 and 1994.

Finally, OBRA93 made permanent both the itemized deduction limitation and the phaseout of the

tax benefits from the personal exemption.

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The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) made three major

changes to the individual income tax rate structure. First, it created a new 10% marginal income

tax bracket for a portion of taxable income that had been taxed at the 15% marginal tax rate. The

new 10% marginal income tax rate bracket applied, beginning in tax year 2002, to the first

$12,000 of taxable income for married couples filing jointly, the first $10,000 of taxable income

for heads of households, and the first $6,000 of taxable income for single individuals. In 2008, the

$6,000 amount for single individuals was scheduled to be $7,000 and the $12,000 amount for

married taxpayers filing joint returns was scheduled to be $14,000. Starting with tax year 2009,

these marginal tax rate bracket amounts are scheduled to be indexed for inflation.

Second, the 2001 Act reduced the top four marginal income tax rates over the 2001 through 2006

time period. Under prior income tax law, the marginal tax rate structure for individuals consisted

of five rates: 15%, 28%, 31%, 36% and 39.6%. The 2001 Act reduced the top four marginal

income tax rates over a six-year period to 25%, 28%, 33% and 35% respectively.

Finally, the act increased the width of the 15% tax bracket for married couples filing joint returns

to twice the width of the 15% tax bracket for single returns. This provision was scheduled to be

phased-in over a four-year time period starting in 2005. The end point of the 15% tax bracket for

joint returns was scheduled to be 180% of the end point of the 15% tax bracket for single returns

in 2005, 187% in 2006, 193% in 2007, and 200% in 2008 and subsequent years.2

In addition to these changes that directly affected the tax rate structure, the 2001 Act made several

other changes of note. It increased the standard deduction for joint returns to twice the size of the

standard deduction for single returns, with the change scheduled to be phased in over a five year

period, 2005 to 2009. EGTRRA also repealed the limitation on itemized deductions and personal

exemptions for high-income taxpayers with the repeal scheduled to be phased in between 2006

and 2010.

For more information on these changes see CRS Report RS20976, Individual Income Tax Rates Under the Economic

Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16), by Gregg A. Esenwein.

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The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) made several changes to the

individual income tax rate structure. First, it accelerated to 2003 the tax rate reductions, originally

enacted as part of EGTRRA, that were scheduled to occur between 2004 and 2006. Second, it

accelerated the scheduled expansion in the 10% tax bracket for single and joint returns to tax

years 2003 and 2004. In 2005, the 10% bracket reverts to the levels as scheduled under

EGTRRA.

Third, it accelerates the scheduled widening of the 15% tax bracket for joint returns to twice the

width of the 15% tax bracket for single returns. This change would be effective for tax years 2003

and 2004. In 2005, the 15% bracket for joint returns would revert to its levels as scheduled under

EGTRRA.

Fourth, JGTRRA accelerated the scheduled increase in the standard deduction for joint returns.

For tax years 2003 and 2004, the standard deduction for joint returns will be twice the size of the

standard deduction for single returns. In 2005, the standard deduction for joint returns reverts to

the levels as scheduled under EGTRRA.

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In September 2004, Congress passed the Working Families Tax Relief Act of 2004 (WFTRA).

WFTRA extended several tax provisions that were scheduled to expire at the end of 2004. These

expiring tax reductions were enacted under JGTRRA, which had accelerated implementation of

tax reductions originally enacted in 2001 under EGTRRA.

Among other things, WFTRA extended marriage penalty relief (standard deduction and 15% tax

bracket for joint returns set at twice the level as those for single returns) through 2008. (In 2009

and 2010, EGTRRA provisions apply, maintaining the level of the standard deduction and 15%

tax bracket for joint returns). The 2004 Act also extended the increase in the 10% income tax

bracket through 2010.

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In the United States, the federal individual income tax is progressive. That is, as incomes

increase, income tax liabilities, when measured as a percentage of income, also increase. Part of

this progressivity is achieved through marginal tax rates that increase as taxable income increases.

In addition, the income tax is structured on the basis of nominal dollar amounts. Some examples

of nominal dollar amounts in the income tax are the personal exemption, the standard deduction,

and the earned income tax credit. During periods of inflation, under an unindexed tax system, the

progressive nature of the marginal tax rates combined with nominal dollar amounts produces

automatic tax increases and unintentional changes in the distribution of the tax burden.

The effects of inflation on real income tax liabilities can be illustrated in the following manner.

Consider the case of a four-person family with a $30,000 income who filed a joint return in 1989.

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If we assume that the family did not itemize its deductions, but rather used the standard

deduction, then its taxable income would have been $16,800 ($30,000 less standard deduction of

$5,200 and four personal exemptions at $2,000 apiece). Income tax liability on taxable income of

$16,800 would have been $2,520 which translates into an average tax rate of 8.4% ($2,520

income tax liability divided by $30,000 income). (See Table 1 for 1989 tax rates.)

Now consider what would happen if inflation averaged 5% in 1990. In order to maintain the same

real gross income that it had in 1989, the family would have to earn $31,500 in 1990. In other

words, income would have to rise by $1,500 for the family to maintain the same real purchasing

power that it had in the previous year. Assuming there is no indexation, the family’s taxable

income would be $18,300 ($31,500 less the standard deduction of $5,200 and four personal

exemptions at $2,000 apiece). Income tax owed on a taxable income of $18,300 would be $2,745

which translates into an average tax rate of 8.7%. As can be seen from this example, under an

unindexed tax system, inflation increased this family’s real income tax burden by 0.3 of a

percentage point between 1989 and 1990.

If the tax system had been indexed for the assumed 5% inflation, the family would have

experienced no increase in their real tax burden. For instance, under an indexed system the value

of the standard deduction for a joint return would have increased from $5,200 in 1989 to $5,460

in 1990. The personal exemption would have increased from $2,000 to $2,100. Under these

circumstances the family’s 1990 taxable income would have been $17,640 ($31,500 income less

standard deduction and personal exemptions). Based on this taxable income, their income tax

liability would have been $2,646 which translates into an average tax rate of 8.4%. Thus, under

an indexed tax system, the family would have experienced no change in their real income tax

liability between 1989 and 1990.

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Provisions originally contained in the Economic Recovery Tax Act of 1981 and later amended by

the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1990, and the Omnibus

Budget Reconciliation Act of 1993, specify that certain components of the individual income tax

system will be indexed for inflation. These components include the standard deductions, the

additional standard deductions for the elderly and the blind, the personal exemption, the earned

income tax credit (EITC), the income breakpoints between the various tax rate brackets, the

income level at which the limitation on itemized deductions becomes effective, and the income

level above which the tax benefits of the personal exemptions are phased out.

The adjustment for any given tax year is to be based on the percentage amount by which the

average Consumer Price Index for all urban consumers (CPI-U) for the twelve month period

ending on August 31 of the preceding year exceeds the average CPI-U during a specified twelve

month base period. The base period varies depending upon the tax component under

consideration.

With the exception of the EITC, inflation adjustments are rounded down to the nearest multiple of

$50. Although rounding down affects the accuracy of any given year’s inflation adjustment, the

effect will not be cumulative since each year’s adjustment will be calculated to reflect the entire

amount of inflation that has occurred between the adjustment year and the base period.

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For example, the adjustment factor for the standard deductions in 2002 was calculated as follows.

The average CPI-U for the base period, September 1986 through August 1987, was 111.98. The

average CPI-U for the period September 2000 through August 2001 was 175.875. Given these

amounts, the inflation adjustment factor for 2002 was 1.5705 (175.875/111.98). This inflation

adjustment factor was then applied to the base year values of the standard deductions to

determine their values for 2002.

For instance, the standard deduction for joint returns in the base year was $5,000. Multiplying this

amount by the inflation adjustment factor produces a 2002 value of $7,852. Rounding down to

the nearest $50 multiple results in a 2002 standard deduction for joint returns of $7,850. This

same process was applied to all of the other indexed components of the tax code to determine

their values in terms of 2002 dollars.

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The following tables present the marginal tax rates schedules, personal exemption amounts, and

standard deductions for tax years 1989 through 2007.

Table 1.Tax Rates, Personal Exemptions, and Standard Deductions, 1989

Personal Exemptions

Standard Deductions

$2,000

Joint

$5,200

Single

3,100

Head of Household

4,550

Additional Standard Deductions for the Elderly and the Blind

Joint

$600

Single/Head of Household

750

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 30,950

$ 30,950 - $ 74,850

$ 74,850 - $177,720

$177,720 +

Then, tax is:

15% of the amount over $ 0

$4,642.50 + 28% of the amount over $ 30,950

$16,934.50 + 33% of the amount over $ 74,850

$50,881.60 + 28% of the amount over $177,720

Marginal Income Tax Rates, Single Returns

taxable income is:

$ 0 - $ 18,550

$ 18,550 - $ 44,900

$ 44,900 - $104,300

$104,300 +

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Then, tax is:

15% of the amount over $ 0

$ 2,782.50 + 28% of the amount over $ 18,550

$10,160.50 + 33% of the amount over $ 44,900

$29,772.40 + 28% of the amount over $104,300

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Marginal Income Tax Rates, Heads of Household

taxable income is:

$ 0 - $ 24,850

$ 24,850 - $ 64,200

$151,210 +

$ 64,200 - $151,210

Then, tax is:

15% of the amount over $ 0

$ 3,727.50 + 28% of the amount over $ 24,850

$43,458.80 + 28% of the amount over $151,210

$14,745.50 + 33% of the amount over $ 64,200

Note: “Tax bubble” indicated by italicized areas of the tax rate schedules.

Table 2.Tax Rates, Personal Exemptions, and Standard Deductions, 1990

Personal Exemptions

Standard Deductions

$2,050

Joint

$5,450

Single

3,250

Head of Household

4,750

Additional Standard Deductions for the Elderly and the Blind

Joint

$650

Single/Head of Household

800

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 32,450

$ 32,450 - $ 78,400

$ 78,400 - $185,730

$185,730 +

Then, tax is:

taxable income is:

$ 0 - $ 19,450

$ 19,450 - $ 47,050

$ 47,050 - $109,100

$109,100 +

15% of the amount over $ 0

$ 4,867.50 + 28% of the amount over $ 32,450

$17,733.50 + 33% of the amount over $ 78,400

$53,152.40 + 28% of the amount over $185,730

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$ 2,917.50 + 28% of the amount over $ 19,450

$10,645.50 + 33% of the amount over $ 47,050

$31,122.00 + 28% of the amount over $109,100

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 26,050

$ 26,050 - 67,200

$ 67,200 - $157,890

Then, tax is:

15% of the amount over $ 0

$ 3,907.50 + 28% of the amount over $ 26,050

$15,429.50 + 33% of the amount over $ 67,200

$157,890 +

$45,357.20 + 28% of the amount over $157,890

Note: “Tax Bubble” indicated by italicized areas of the tax rate schedules.

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.Tax Rates, Personal Exemptions, and Standard Deductions, 1991

Table 3

Personal Exemptions

Standard Deductions

$2,150

Joint

$5,700

Single

3,400

Head of Household

5,000

Additional Standard Deductions for the Elderly and the Blind

Joint

$650

Single/Head of Household

850

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 34,000

$ 34,000 - $ 82,150

$ 82,150 +

Then, tax is:

taxable income is:

$ 0 - $ 20,350

$ 20,350 - $ 49,300

$ 49,300 +

15% of the amount over $ 0

$ 5,100 + 28% of the amount over $ 34,000

$18,582 + 31% of the amount over $ 82,150

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$ 3,052.50 + 28% of the amount over $ 20,350

$11,158.50 + 31% of the amount over $ 49,300

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 27,300

$ 27,300 - $ 70,450

$ 70,450 +

Then, tax is:

15% of the amount over $ 0

$ 4,095 + 28% of the amount over $ 27,300

$16,177 + 31% of the amount over $ 70,450

Table 4.Tax Rates, Personal Exemptions, and Standard Deductions, 1992

Personal Exemptions

Standard Deductions

$2,300

Joint

$6,000

Single

3,600

Head of Household

5,250

Additional Standard Deductions for the Elderly and the Blind

Joint

$700

Single/Head of Household

900

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 35,800

$ 35,800 - $ 86,500

$ 86,500 +

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$ 5,370 + 28% of the amount over $ 35,800

$19,566 + 31% of the amount over $ 86,500

şȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

Marginal Income Tax Rates, Single Returns

taxable income is:

$ 0 - $ 21,450

$ 21,450 - $ 51,900

$ 51,900 +

Then, tax is:

15% of the amount over $ 0

$ 3,218 + 28% of the amount over $ 21,450

$11,744 + 31% of the amount over $ 51,900

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 28,750

$ 28,750 - $ 74,150

$ 74,150 +

Then, tax is:

15% of the amount over $ 0

$ 4,313 + 28% of the amount over $ 28,750

$17,235 + 31% of the amount over $ 74,150

Table 5.Tax Rates, Personal Exemptions, and Standard Deductions, 1993

Personal Exemptions

Standard Deductions

$2,350

Joint

$6,200

Single

3,700

Head of Household

5,450

Additional Standard Deductions for the Elderly and the Blind

Joint

$700

Single/Head of Household

900

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 36,900

$ 36,900 - $ 89,150

$ 89,150 - $ 140,000

$ 140,000 - $ 250,000

$ 250,000 +

Then, tax is:

taxable income is:

$ 0 - $ 22,100

$ 22,100 - $53,500

$ 53,500 - $ 115,000

$ 115,000 - $ 250,000

$ 250,000 +

15% of the amount over $ 0

$5,535 + 28% of the amount over $36,900

$20,165 + 31% of the amount over $89,150

$35,929 + 36% of the amount over $140,000

$75,529 + 39.6% of the amount over $250,000

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,315 + 28% of the amount over $22,100

$12,107 + 31% of the amount over $53,500

$31,172 + 36% of the amount over $115,000

$79,772 + 39.6% of the amount over $250,000

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 29,600

$ 29,600 - $ 76,400

$ 76,400 - $ 127,500

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$4,440 + 28% of the amount over $29,600

$17,544 + 31% of the amount over $76,400

ŗŖȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

$33,385 + 36% of the amount over $127,500

$77,485 + 39.6% of the amount over $250,000

$ 127,500 - $ 250,000

$ 250,000 +

.Tax Rates, Personal Exemptions, and Standard Deductions, 1994

Table 6

Personal Exemptions

Standard Deductions

$2,450

Joint

$6,350

Single

3,800

Head of Household

5,600

Additional Standard Deductions for the Elderly and the Blind

Joint

$750

Single/Head of Household

950

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 38,000

$ 38,000 - $ 91,850

$ 91,850 - $ 140,000

$ 140,000 - $ 250,000

$ 250,000 +

Then, tax is:

taxable income is:

$ 0 - $ 22,750

$ 22,750 - $ 55,100

$ 55,100 - $ 115,000

$ 115,000 - $ 250,000

$ 250,000 +

15% of the amount over $ 0

$5,700 + 28% of the amount over $38,000

$20,778 + 31% of the amount over $91,850

$35,705 + 36% of the amount over $140,000

$75,305 + 39.6% of the amount over $250,000

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,413 + 28% of the amount over $22,750

$12,471 + 31% of the amount over $55,100

$31,040 + 36% of the amount over $115,000

$79,640 + 39.6% of the amount over $250,000

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 30,500

$ 30,500 - $ 78,700

$ 78,700 - $ 127,500

$ 127,500 - $ 250,000

$ 250,000 +

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$4,575 + 28% of the amount over $30,500

$18,071 + 31% of the amount over $78,750

$33,199 + 36% of the amount over $127,500

$77,299 + 39.6% of the amount over $250,000

ŗŗȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

.Tax Rates, Personal Exemptions, and Standard Deductions, 1995

Table 7

Personal Exemptions

Standard Deductions

$2,500

Joint

$6,550

Single

3,900

Head of Household

5,750

Additional Standard Deductions for the Elderly and the Blind

Joint

$750

Single/Head of Household

950

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 39,000

$ 39,000 - $ 94,250

$ 94,250 - $ 143,600

$ 143,600 - $ 256,500

$ 256,500 +

Then, tax is:

taxable income is:

$ 0 - $ 23,350

$ 23,350 - $ 56,550

$ 56,550 - $ 117,950

$ 117,950 - $ 256,500

$ 256,500 +

15% of the amount over $ 0

$5,850 + 28% of the amount over $39,000

$21,320 + 31% of the amount over $94,250

$36,619 + 36% of the amount over $143,600

$77,263 + 39.6% of the amount over $256,500

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,503 + 28% of the amount over $23,350

$12,799 + 31% of the amount over $56,550

$31,833 + 36% of the amount over $117,950

$81,711 + 39.6% of the amount over $256,500

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 31,250

$ 31,250 - $ 80,750

$ 80,750 - $ 130,800

$ 130,800 - $ 256,500

$ 256,500 +

Then, tax is:

15% of the amount over $ 0

$4,688 + 28% of the amount over $31,250

$18,548 + 31% of the amount over $80,750

$34,063 + 36% of the amount over $130,800

$79,315 + 39.6% of the amount over $256,500

Table 8.Tax Rates, Personal Exemptions, and Standard Deductions, 1996

Personal Exemptions

Standard Deductions

$2,550

Joint

$6,700

Single

4,000

Head of Household

5,900

ȱȱȱ

ŗŘȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

Additional Standard Deductions for the Elderly and the Blind

Joint

$800

Single/Head of Household

1,000

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 40,100

$ 40,100 - $ 96,900

$ 96,900 - $ 147,700

$ 147,700 - $ 263,750

$ 263,750 +

Then, tax is:

taxable income is:

$ 0 - $ 24,000

$ 24,000 - $ 58,150

$ 58,150 - $ 121,300

$ 121,300 - $ 263,750

$ 263,750 +

15% of the amount over $ 0

$6,015 + 28% of the amount over $40,100

$21,919 + 31% of the amount over $96,900

$37,667 + 36% of the amount over $147,700

$79,445 + 39.6% of the amount over $263,750

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,600 + 28% of the amount over $24,000

$13,162 + 31% of the amount over $58,150

$32,739 + 36% of the amount over $121,300

$84,021 + 39.6% of the amount over $263,750

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 32,150

$ 32,150 - $ 83,050

$ 83,050 - $ 134,500

$ 134,500 - $ 263,750

$ 263,750 +

Then, tax is:

15% of the amount over $ 0

$4,823 + 28% of the amount over $32,150

$19,075 + 31% of the amount over $83,050

$35,025 + 36% of the amount over $134,500

$81,555 + 39.6% of the amount over $263,750

Table 9.Tax Rates, Personal Exemptions, and Standard Deductions, 1997

Personal Exemptions

Standard Deductions

$2,650

Joint

$6,900

Single

4,150

Head of Household

6,050

Additional Standard Deductions for the Elderly and the Blind

Joint

$800

Single/Head of Household

1,000

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 41,200

$ 41,200 - $ 99,600

$ 99,600 - $ 151,750

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$6,180 + 28% of the amount over $41,200

$22,532 + 31% of the amount over $99,600

ŗřȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

$38,699 + 36% of the amount over $151,750

$81,647 + 39.6% of the amount over $271,050

$ 151,750 - $ 271,050

$ 271,050 +

taxable income is:

$ 0 - $ 24,650

$ 24,650 - $ 59,750

$ 59,750 - $ 124,650

$ 124,650 - $ 271,050

$ 271,050 +

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,698 + 28% of the amount over $24,650

$13,526 + 31% of the amount over $59,750

$33,645 + 36% of the amount over $124,650

$86,349 + 39.6% of the amount over $271,050

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 33,050

$ 33,050 - $ 83,350

$ 83,350 - $ 138,200

$ 138,200 - $ 271,050

$ 271,050 +

Then, tax is:

15% of the amount over $ 0

$4,958 + 28% of the amount over $33,050

$19,602 + 31% of the amount over $85,350

$35,986 + 36% of the amount over $138,200

$83,812 + 39.6% of the amount over $271,050

Table 10.Tax Rates, Personal Exemptions, and Standard Deductions, 1998

Personal Exemptions

Standard Deductions

$2,700

Joint

$7,100

Single

4,250

Head of Household

6,250

Additional Standard Deductions for the Elderly and the Blind

Joint

$850

Single/Head of Household

1,050

Maginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 42,350

$ 42,350 - $ 102,300

$ 102,300 - $ 155,950

$ 155,950 - $ 278,450

$ 278,450 +

Then, tax is:

15% of the amount over $ 0

$6,353 + 28% of the amount over $42,350

$23,139 + 31% of the amount over $102,300

$39,770 + 36% of the amount over $155,950

$83,870 + 39.6% of the amount over $278,450

Marginal Income Tax Rates, Single Returns

taxable income is:

$ 0 - $ 25,350

$ 25,350 - $ 61,400

$ 61,400 - $ 128,100

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$3,803 + 28% of the amount over $25,350

$13,897 + 31% of the amount over $61,400

ŗŚȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

$34,574 + 36% of the amount over $128,100

$88,700 + 39.6% of the amount over $278,450

$ 128,100 - $ 278,450

$ 278,450 +

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 33,950

$ 33,950 - $ 87,700

$ 87,700 - $ 142,000

$ 142,000 - $ 278,450

$ 278,450 +

Then, tax is:

15% of the amount over $ 0

$5,093 + 28% of the amount over $33,950

$20,143 + 31% of the amount over $87,700

$36,976+ 36% of the amount over $142,000

$86,098 + 39.6% of the amount over $278,450

Table 11.Tax Rates, Personal Exemptions, and Standard Deductions, 1999

Personal Exemptions

Standard Deductions

$2,750

Joint

$7,200

Single

4,300

Head of Household

6,350

Additional Standard Deductions for the Elderly and the Blind

Joint

$850

Single/Head of Household

1,050

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 43,050

$ 43,050 - $ 104,050

$ 104,050 - $ 158,550

$ 158,550 - $ 283,150

$ 283,150 +

Then, tax is:

taxable income is:

$ 0 - $ 25,750

$ 25,750 - $ 62,450

$ 62,450 - $ 130,250

$ 130,250 - $ 283,150

$ 283,150 +

15% of the amount over $ 0

$6,458 + 28% of the amount over $43,050

$23,538 + 31% of the amount over $104,050

$40,433 + 36% of the amount over $158,550

$85,289 + 39.6% of the amount over $283,150

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,863 + 28% of the amount over $25,750

$14,139 + 31% of the amount over $62,450

$35,157 + 36% of the amount over $130,250

$90,201 + 39.6% of the amount over $283,150

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 34,550

$ 34,550 - $ 89,150

$ 89,150 - $ 144,400

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$5,183 + 28% of the amount over $34,550

$20,471 + 31% of the amount over $89,150

ŗśȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

$37,598 + 36% of the amount over $144,440

$87,548 + 39.6% of the amount over $283,150

$ 144,400 - $ 283,150

$ 283,150 +

.Tax Rates, Personal Exemptions, and Standard Deductions, 2000

Table 12

Personal Exemptions

Standard Deductions

$2,800

Joint

$7,350

Single

4,400

Head of Household

6,450

Additional Standard Deductions for the Elderly and the Blind

Joint

$850

Single/Head of Household

1,100

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 43,850

$ 43,850 - $ 105,950

$ 105,950 - $ 161,450

$ 161,450 - $ 288,350

$ 288,350 +

Then, tax is:

taxable income is:

$ 0 - $ 26,250

$ 26,250 - $ 63,550

$ 63,550 - $ 132,600

$ 132,600 - $ 288,350

$ 288,350 +

15% of the amount over $ 0

$6,578 + 28% of the amount over $43,850

$23,966 + 31% of the amount over $105,950

$41,171 + 36% of the amount over $161,450

$86,855 + 39.6% of the amount over $288,350

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$3,938 + 28% of the amount over $26,250

$14,382 + 31% of the amount over $63,550

$35,787 + 36% of the amount over $132,600

$91,857 + 39.6% of the amount over $288,350

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 35,150

$ 35,150 - $ 90,800

$ 90,800 - $ 147,050

$ 147,050 - $ 288,350

$ 288,350 +

ȱȱȱ

Then, tax is:

15% of the amount over $ 0

$5,273 + 28% of the amount over $35,150

$20,855 + 31% of the amount over $90,800

$38,292 + 36% of the amount over $147,050

$89,160 + 39.6% of the amount over $288,350

ŗŜȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

Table 13. Tax Rates,

Personal Exemptions

Standard Deductions

Personal Exemptions, and Standard Deductions, 2001

$2,900

Joint

$7,600

Single

4,550

Head of Household

6,650

Additional Standard Deductions for the Elderly and the Blind

Joint

$900

Single/Head of Household

1,100

Marginal Income Tax Rates, Joint Returns

taxable income is:

$ 0 - $ 45,200

$ 45,200 - $ 109,250

$ 109,250 - $ 166,500

$ 166,500 - $ 297,350

$ 297,350 +

Then, tax is:

taxable income is:

$ 0 - $ 27,050

$ 27,050 - $ 65,550

$ 65,550 - $ 136,750

$ 136,750 - $ 297,350

$ 297,350 +

15% of the amount over $ 0

$6,780 + 27.5% of the amount over $45,200

$24,394 + 30.5% of the amount over $109,250

$41,855 + 35.5% of the amount over $166,500

$88,307 + 39.1% of the amount over $297,350

Marginal Income Tax Rates, Single Returns

Then, tax is:

15% of the amount over $ 0

$4,058 + 27.5% of the amount over $27,050

$14,646 + 30.5% of the amount over $65,550

$36,362 + 35.5% of the amount over $136,750

$93,375 + 39.1% of the amount over $297,350

Marginal Income Tax Rates, Heads of Households

taxable income is:

$ 0 - $ 36,250

$ 36,250 - $ 93,650

$ 93,650 - $ 151,650

$ 151,650 - $ 297,350

$ 297,350 +

Then, tax is:

15% of the amount over $ 0

$5,438 + 27.5% of the amount over $36,250

$21,223 + 30.5% of the amount over $93,650

$38,913 + 35.5% of the amount over $151,650

$90,637 + 39.1% of the amount over $297,350

Table 14. Personal Exemptions and Standard Deductions, 2002

Personal Exemptions

Standard Deductions:

$3,000

Joint

$7,850

Single

$4,700

Head of Household

$6,900

ȱȱȱ

ŗŝȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

Additional Standard Deductions for the Elderly and the Blind:

Joint

$900

Single/Head of Household

$1,150

Table 15. Marginal Income Tax Rates, 2002

Joint Returns

If taxable income is:

$12,000

$46,700

$112,850

$171,950

$307,050 plus

Then, tax is:

$12,000

$46,700

$112,850

$171,950

$307,050

10% of the amount over $0

$1,200 plus 15% of the amount over $12,000

$6,405 plus 27% of the amount over $46,700

$24,266 plus 30% of the amount over $112,850

$41,996 plus 35% of the amount over $171,950

$89,281 plus 38.6% of the amount over $307,050

Single Returns

taxable income is:

$6,000

$27,950

$67,700

$141,250

$307,050 plus

Then, tax is:

$6,000

$27,950

$67,700

$141,250

$307,050

10% of the amount over $0

$600 plus 15% of the amount over $6,000

$3,893 plus 27% of the amount over $27,950

$14,626 plus 30% of the amount over $67,700

$36,691 plus 35% of the amount over $141,250

$94,721 plus 38.6% of the amount over $307,050

Heads of Households

taxable income is:

$10,000

$37,450

$96,700

$156,600

$307,050 plus

Then, tax is:

$10,000

$37,450

$96,700

$156,600

$307,050

10% of the amount over $0

$1,000 plus 15% of the amount over $10,000

$5,118 plus 27% of the amount over $37,450

$21,116 plus 30% of the amount over $96,700

$39,086 plus 35% of the amount over $156,600

$91,744 plus 38.6% of the amount over $307,050

Table 16. Marginal Income Tax Rates, 2003 Under Prior Law

(Pre-

Jobs and Growth Tax Relief Reconciliation Act)

Joint Returns

If taxable income is:

$12,000

$47,450

$114,650

Then, tax is:

$12,000

$47,450

$114,650

$174,700

ȱȱȱ

10% of the amount over $0

$1,200 plus 15% of the amount over $12,000

$6,518 plus 27% of the amount over $47,450

$24,662 plus 30% of the amount over $114,650

ŗŞȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

$174,700

$311,950

plus

$42,677 plus 35% of the amount over $174,700

$90,714 plus 38.6% of the amount over $311,950

Standard Deduction for a joint return was $7,950

$311,950

Single Returns

If taxable income is:

$6,000

$28,400

$68,800

$143,500

$311,950 plus

Then, tax is:

$6,000

$28,400

$68,800

$143,500

$311,950

10% of the amount over $0

$600 plus 15% of the amount over $6,000

$3,960 plus 27% of the amount over $28,400

$14,868 plus 30% of the amount over $68,800

$37,278 plus 35% of the amount over $143,500

$96,236 plus 38.6% of the amount over $311,950

Standard deduction for a single return is $4,750

Heads of Households

If t

axable income is:

$10,000

$38,050

$98,250

$159,100

$311,950 plus

Then, tax is:

$10,000

$38,050

$98,250

$159,100

$311,950

10% of the amount over $0

$1,000 plus 15% of the amount over $10,000

$5,208 plus 27% of the amount over $38,050

$21,462 plus 30% of the amount over $98,250

$39,717 plus 35% of the amount over $159,100

$93,214 plus 38.6% of the amount over $311,950

Standard deduction for head of household return is $7,000

Table 17. Personal Exemptions and Standard Deductions, Limitation on Itemized

Deductions, and the Personal Exemption Phaseout, 2003

Personal Exemptions

Standard Deductions:

$3,050

Joint

Single

Head of Household

$9,500

$4,750

$7,000

Additional Standard Deductions for the Elderly and the Blind:

Joint

Single/Head of Household

Limitation on itemized deductions:

$950

$1,150

$139,500

Joint

Head of household

Single

$209,250

$174,400

$139,500

Phase out of personal exemptions:

ȱȱȱ

ŗşȱ

ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

. Marginal Income Tax Rates, 2003

Table 18

Joint Returns

If taxable income is:

$14,000

$56,800

$114,650

$174,700

$311,950

plus

Then, tax is:

$14,000

$56,800

$114,650

$174,700

$311,950

10% of the amount over $0

$1,400 plus 15% of the amount over $14,000

$7,820 plus 25% of the amount over $56,800

$22,283 plus 28% of the amount over $114,650

$39,097 plus 33% of the amount over $174,700

$84,390 plus 35% of the amount over $311,950

Single Returns

If t

axable income is:

$7,000

$28,400

$68,800

$143,500

$311,950

plus

Then, tax is:

$7,000

$28,400

$68,800

$143,500

$311,950

10% of the amount over $0

$700 plus 15% of the amount over $7,000

$3,910 plus 25% of the amount over $28,400

$14,010 plus 28% of the amount over $68,800

$34,926 plus 33% of the amount over $143,500

$90,515 plus 35% of the amount over $311,950

Heads of Households

If t

axable income is:

$10,000

$38,050

$98,250

$159,100

$311,950

plus

Then, tax is:

$10,000

$38,050

$98,250

$159,100

$311,950

10% of the amount over $0

$1,000 plus 15% of the amount over $10,000

$5,208 plus 25% of the amount over $38,050

$20,258 plus 28% of the amount over $98,250

$37,296 plus 33% of the amount over $159,100

$87,737 plus 35% of the amount over $311,950

Table 19. Personal Exemptions and Standard Deductions, Limitation on Itemized

Deductions, and the Personal Exemption Phaseout, 2004

Personal Exemptions

Standard Deductions:

$3,100

Joint

Single

Head of Household

$9,700

$4,850

$7,150

Additional Standard Deductions for the Elderly and the Blind:

Joint

Single/Head of Household

Limitation on itemized deductions:

$950

$1,200

$142,700

Joint

$214,050

Phase out of personal exemptions:

ȱȱȱ

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Head of household

$178,350

Single

$142,700

Table 20. Marginal Income Tax Rates, 2004

Joint Returns

If taxable income is:

$14,300

$58,100

$117,250

$178,650

$319,100

plus

Then, tax is:

$14,300

$58,100

$117,250

$178,650

$319,100

10% of the amount over $0

$1,430 plus 15% of the amount over $14,300

$8,000 plus 25% of the amount over $58,100

$22,788 plus 28% of the amount over $117,250

$39,980 plus 33% of the amount over $178,650

$86,328 plus 35% of the amount over $319,100

Single Returns

If t

axable income is:

$7,150

$29,050

$70,350

$146,750

$319,100

plus

Then, tax is:

$7,150

$29,050

$70,350

$146,750

$319,100

10% of the amount over $0

$715 plus 15% of the amount over $7,150

$4,000 plus 25% of the amount over $29,050

$14,325 plus 28% of the amount over $70,350

$35,717 plus 33% of the amount over $146,750

$92,593 plus 35% of the amount over $319,100

Heads of Households

If t

axable income is:

$10,200

$38,900

$100,500

$162,700

$319,100

plus

Then, tax is:

$10,200

$38,900

$100,500

$162,700

$319,100

10% of the amount over $0

$1,020 plus 15% of the amount over $10,200

$5,325 plus 25% of the amount over $38,900

$20,725 plus 28% of the amount over $100,500

$38,141 plus 33% of the amount over $162,700

$89,753 plus 35% of the amount over $319,100

Table 21. Personal Exemptions, Standard Deductions, Limitation on Itemized

Deductions and the Personal Exemption Phase Out Thresholds, 2005

Personal Exemptions

Standard Deductions:

$3,200

Joint

$10,000

Single

$5,000

Head of Household

$7,300

Additional Standard Deductions for the Elderly and the Blind:

Joint (each spouse)

$1,000

Single/Head of Household

$1,250

ȱȱȱ

Řŗȱ

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Limitation on itemized deductions:

$145,950

Joint

$218,950

Head of household

$182,450

Single

$145,950

Phase out of personal exemptions:

Table 22. Marginal Income Tax Rates, 2005

Joint Returns

If taxable income is:

$14,600

$59,400

$119,950

$182,800

$326,450

plus

Then, tax is:

$14,600

$59,400

$119,950

$182,800

$326,450

10% of the amount over $0

$1,460 plus 15% of the amount over $14,600

$8,180 plus 25% of the amount over $59,400

$23,318 plus 28% of the amount over $119,950

$40,916 plus 33% of the amount over $182,800

$88,321 plus 35% of the amount over $326,450

Single Returns

If t

axable income is:

$7,300

$29,700

$71,950

$150,150

$326,450

plus

Then, tax is:

$7,300

$29,700

$71,950

$150,150

$326,450

10% of the amount over $0

$730 plus 15% of the amount over $7,300

$4,090 plus 25% of the amount over $29,700

$14,653 plus 28% of the amount over $71,950

$36,549 plus 33% of the amount over $150,150

$94,728 plus 35% of the amount over $326,450

Heads of Households

If t

axable income is:

$10,450

$39,800

$102,800

$166,450

$326,450

plus

Then, tax is:

$10,450

$39,800

$102,800

$166,450

$326,450

10% of the amount over $0

$1,045 plus 15% of the amount over $10,450

$5,448 plus 25% of the amount over $39,800

$21,198 plus 28% of the amount over $102,800

$39,020 plus 33% of the amount over $166,450

$91,820 plus 35% of the amount over $326,450

Table 23. 2005 EITC Indexed Levels

Credit Rate

Maximum credit earnings

Maximum credit

Credit phaseout rate

ȱȱȱ

One

Two or More

Children

Child

Children

7.65%

$5,220

$399

7.65%

34%

$7,830

$2,662

15.98%

40%

$11,000

$4,400

21.06%

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ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

One

Two or More

Children

Child

Children

$6,530

$11,750

$14,370

$31,030

$14,370

$35,263

Phaseout Range:

Phaseout Range, Married Couples:

Start

$8,530

$16,370

End

$13,750

$33,030

$37,263

Note: For more information on the earned income tax credit, see CRS Report RL31768, The Earned Income Tax

Credit (EITC): An Overview, by Christine Scott.

Table 24. Personal Exemptions, Standard Deductions, Limitation on Itemized

Deductions and the Personal Exemption Phase Out Thresholds, 2006

Personal Exemptions

Standard Deductions:

$3,300

Joint

Single

Head of Household

$10,300

$5,150

$7,550

Joint (each spouse)

Single/Head of Household

Limitation on itemized deductions:

$1,000

$1,250

$150,500

Joint

Head of household

Single

$225,750

$188,150

$150,500

Additional Standard Deductions for the Elderly and the Blind:

Phase out of personal exemptions:

Table 25. Marginal Income Tax Rates, 2006

Joint Returns

If taxable income is:

$15,100

$61,300

$123,700

$188,450

$336,550

plus

Then, tax is:

$15,100

$61,300

$123,700

$188,450

$336,550

10% of the amount over $0

$1,510 plus 15% of the amount over $15,100

$8,440 plus 25% of the amount over $61,300

$24,040 plus 28% of the amount over $123,700

$42,170 plus 33% of the amount over $188,450

$91,043 plus 35% of the amount over $336,550

Single Returns

If t

axable income is:

ȱȱȱ

Then, tax is:

$7,550

10% of the amount over $0

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$7,550

$30,650

$74,200

$154,800

$336,550

plus

$74,200

$154,800

$336,550

$755 plus 15% of the amount over $7,550

$4,220 plus 25% of the amount over $30,650

$15,108 plus 28% of the amount over $74,200

$37,676 plus 33% of the amount over $154,800

$97,653 plus 35% of the amount over $336,550

Heads of Households

If taxable income is:

$10,750

$41,050

$106,000

$171,650

$336,550

plus

Then, tax is:

$10,750

$41,050

$106,000

$171,650

$336,550

10% of the amount over $0

$1,075 plus 15% of the amount over $10,750

$5,620 plus 25% of the amount over $41,050

$21,858 plus 28% of the amount over $106,000

$40,240 plus 33% of the amount over $171,650

$94,657 plus 35% of the amount over $336,550

Table 26. 2006 EITC Indexed Levels

Credit Rate

Maximum credit earnings

Maximum credit

Credit phaseout rate

Phaseout Range:

One

Two or More

Children

Child

Children

7.65%

$5,380

$412

7.65%

34%

$8,080

$2,747

15.98%

40%

$11,340

$4,536

21.06%

$6,740

$12,120

$14,810

$32,001

$14,810

$36,348

Phaseout Range, Married Couples:

Start

$8,740

$16,810

End

$14,120

$34,001

$38,348

Note: For more information on the earned income tax credit, see CRS Report RL31768, The Earned Income Tax

Credit (EITC): An Overview, by Christine Scott.

Table 27. Personal Exemptions, Standard Deductions, Limitation on Itemized

Deductions and the Personal Exemption Phase Out Thresholds, 2007

Personal Exemptions

Standard Deductions:

$3,400

Joint

$10,700

Single

$5,350

Head of Household

$7,850

Additional Standard Deductions for the Elderly and the Blind:

Joint (each spouse)

ȱȱȱ

$1,050

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Single/Head of Household

$1,300

$156,400

Limitation on itemized deductions:

Phase out of personal exemptions:

Joint

$234,600

Head of household

$195,500

Single

$156,400

Note: Preliminary, based on information contained in “A Summary of 2007 Inflation Adjustments Impacting

Individuals,” by James C. Young, Tax Notes Today, September 18, 2006.

Table 28. Marginal Income Tax Rates, 2007

Joint Returns

If taxable income is:

$15,650

$63,700

$128,500

$195,850

$349,700 plus

Then, tax is:

$15,650

$63,700

$128,500

$195,850

$349,700

10% of the amount over $0

$1,565 plus 15% of the amount over $15,650

$8,773 plus 25% of the amount over $63,700

$24,973 plus 28% of the amount over $128,500

$43,831 plus 33% of the amount over $195,850

$94,601 plus 35% of the amount over $349,700

Single Returns

If t

axable income is:

$7,825

$31,850

$77,100

$160,850

$349,700 plus

Then, tax is:

$7,825

$31,850

$77,100

$160,850

$349,700

10% of the amount over $0

$783 plus 15% of the amount over $7,825

$4,386 plus 25% of the amount over $31,850

$15,699 plus 28% of the amount over $77,100

$39,149 plus 33% of the amount over $160,850

$101,469 plus 35% of the amount over $349,700

Heads of Households

If t

axable income is:

$11,200

$42,650

$110,100

$178,350

$349,700 plus

Then, tax is:

$11,200

$42,650

$110,100

$178,350

$349,700

10% of the amount over $0

$1,120 plus 15% of the amount over $11,200

$5,838 plus 25% of the amount over $42,650

$22,700 plus 28% of the amount over $110,100

$41,810 plus 33% of the amount over $178,350

$98,356 plus 35% of the amount over $349,700

Note: Preliminary, based on information contained in “A Summary of 2007 Inflation Adjustments Impacting

Individuals,” by James C. Young, Tax Notes Today, September 18, 2006.

ȱȱȱ

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ȱ ȱ¡ȱǱȱŗşŞşȱȱŘŖŖŝȱ

ȱȱ ȱ

Gregg A. Esenwein

ȱȱȱ

ŘŜȱ

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.