Individual Income Tax Rates: 1989 through 2007

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

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.

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

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

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%. O

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 ¹

1989 through 2007.

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.”

¹^T^hⁱ^s^rep^o^r^t^c^oⁿ^cen^t^r^at^{es on}^st^at^u^t^o^r^y^m^a^r^gⁱⁿ^alⁱⁿ^co^m^e^t^a^{x rat}^e^s,^whⁱ^c^h^{are t}^h^{e rat}^e^s^o^f^t^a^{x ap}^p^lⁱ^cab^l^e^oⁿ^{an i}ⁿ^crem^en^t
^of^ta^x^a^ble^inc^o^m^e^.^A^v^e^r^a^g^e^ta^x^ra^te^{s, on}^the^othe^r^ha^nd^{, a}^r^e^ta^x^lia^b^ility^e^x^pre^s^se^{d a}^s^a^pe^rc^eⁿ^ta^g^e^of^inc^o^m^e^.

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 upper-
income 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.

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

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.

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

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.

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

²^For^m^o^r^e^inf^o^r^m^a^{tion o}ⁿ^the^s^e^c^h^aⁿ^g^e^s^s^e^e^C^R^S^R^e^por^{t R}^S²⁰⁹⁷^6,^I^ndivⁱ^du^{al I}ⁿ^c^o^m^e^Tax^Rate^s^Uⁿ^de^r^the^Ec^o^nom^ic
^G^r^ow^th^an^{d T}^a^x^Re^lie^{f Re}^c^onc^ilⁱ^a^tio^{n Ac}^t^of²⁰⁰¹⁽^P^{.L. 1}^07-¹⁶⁾^,^b^y^Gr^e^g^g^A.^E^s^eⁿ^weⁱⁿ^.

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.

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.

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.

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.

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.

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.

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}^$2,00⁰
^{Standard Dedu}^ctions
^Joint^$5,20⁰
^Single^3,10⁰
^{Head of Household}^4,55⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$60⁰
^{Single/Head of Household}⁷⁵⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^0,95⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^0,95^{0 - $}^74,8⁵⁰^$4,64^2.50^{+ 2}^{8% of t}^{he amou}^nt^{over $ 3}^0,95⁰
^{$ 74,850 - $177,720}^{$16,934.50 + 33% of the am}^{ount over $ 74,850}
^$17^7,72^{0 +}^$50,8^81.6^{0 +}²⁸^{% of th}^{e amount}^{over $1}^77,7²⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}¹^8,55⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 1}^8,55^{0 - $}^44,9⁰⁰^{$ 2,7}^82.5^{0 +}^28%^{of the a}^mount^{over $ 1}^8,55⁰
^{$ 44,900 - $104,300}^{$10,160.50 + 33% of the am}^{ount over $ 44,900}
^$10^4,30^{0 +}^$29,7^72.4^{0 +}²⁸^{% of th}^{e amount}^{over $1}^04,3⁰⁰

^{Marginal Inc}^{ome Tax Rates, Heads of Household}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^4,85⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^4,85^{0 - $}^64,2⁰⁰^{$ 3,7}^27.5^{0 +}^28%^{of the a}^mount^{over $ 2}^4,85⁰
^$15^1,21^{0 +}^$43,4^58.8^{0 +}²⁸^{% of th}^{e amount}^{over $1}^51,2¹⁰
^{$ 64,200 - $151,210}^{$14,745.50 + 33% of the am}^{ount over $ 64,200}
^Note:^{“Tax bubble” indicated by}^italici^{zed areas of the tax}^{rate sc}^hedules.
Table 2. Tax Rates, Personal Exemptions, and Standard Deductions, 1990
^{Personal Exemptions}^$2,05⁰
^{Standard Dedu}^ctions
^Joint^$5,45⁰
^Single^3,25⁰
^{Head of Household}^4,75⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$65⁰
^{Single/Head of Household}⁸⁰⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^2,45⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^2,45^{0 - $}^78,4⁰⁰^{$ 4,8}^67.5^{0 +}^28%^{of the a}^mount^{over $ 3}^2,45⁰
^{$ 78,400 - $185,730}^{$17,733.50 + 33% of the am}^{ount over $ 78,400}
^$18^5,73^{0 +}^$53,1^52.4^{0 +}²⁸^{% of th}^{e amount}^{over $1}^85,7³⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}¹^9,45⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 1}^9,45^{0 - $}^47,0⁵⁰^{$ 2,9}^17.5^{0 +}^28%^{of the a}^mount^{over $ 1}^9,45⁰
^{$ 47,050 - $109,100}^{$10,645.50 + 33% of the am}^{ount over $ 47,050}
^$10^9,10^{0 +}^$31,1^22.0^{0 +}²⁸^{% of th}^{e amount}^{over $1}^09,1⁰⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^6,05⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^6,05^{0 - 6}^7,20⁰^{$ 3,9}^07.5^{0 +}^28%^{of the a}^mount^{over $ 2}^6,05⁰
^{$ 67,200 - $157,890}^{$15,429.50 + 33% of the am}^{ount over $ 67,200}
^$15^7,89^{0 +}^$45,3^57.2^{0 +}²⁸^{% of th}^{e amount}^{over $1}^57,8⁹⁰
^Note:^{“Tax Bubble” indicated by}^italici^{zed areas of the tax}^{rate sc}^hedules.

Table 3. Tax Rates, Personal Exemptions, and Standard Deductions, 1991
^{Personal Exemptions}^$2,15⁰
^{Standard Dedu}^ctions
^Joint^$5,70⁰
^Single^3,40⁰
^{Head of Household}^5,00⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$65⁰
^{Single/Head of Household}⁸⁵⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^4,00⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^4,00^{0 - $}^82,1⁵⁰^{$ 5,1}^{00 +}²^{8% of t}^{he amou}^{nt ove}^{r $ 3}^4,0⁰⁰
^{$ 8}^2,15^{0 +}^$18,5⁸²^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $}^82,1⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^0,35⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^0,35^{0 - $}^49,3⁰⁰^{$ 3,0}^52.5^{0 +}^28%^{of the a}^mount^{over $ 2}^0,35⁰
^{$ 4}^9,30^{0 +}^$11,1^58.5^{0 +}³¹^{% of th}^{e amount}^{over $ 4}^9,30⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^7,30⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^7,30^{0 - $}^70,4⁵⁰^{$ 4,0}^{95 +}²^{8% of t}^{he amou}^{nt ove}^{r $ 2}^7,3⁰⁰
^{$ 7}^0,45^{0 +}^$16,1⁷⁷^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $}^70,4⁵⁰
Table 4. Tax Rates, Personal Exemptions, and Standard Deductions, 1992
^{Personal Exemptions}^$2,30⁰
^{Standard Dedu}^ctions
^Joint^$6,00⁰
^Single^3,60⁰
^{Head of Household}^5,25⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$70⁰
^{Single/Head of Household}⁹⁰⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^5,80⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^5,80^{0 - $}^86,5⁰⁰^{$ 5,3}^{70 +}²^{8% of t}^{he amou}^{nt ove}^{r $ 3}^5,8⁰⁰
^{$ 8}^6,50^{0 +}^$19,5⁶⁶^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $}^86,5⁰⁰

^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^1,45⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^1,45^{0 - $}^51,9⁰⁰^{$ 3,2}^{18 +}²^{8% of t}^{he amou}^{nt ove}^{r $ 2}^1,4⁵⁰
^{$ 5}^1,90^{0 +}^$11,7⁴⁴^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $}^51,9⁰⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^8,75⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^8,75^{0 - $}^74,1⁵⁰^{$ 4,3}^{13 +}²^{8% of t}^{he amou}^{nt ove}^{r $ 2}^8,7⁵⁰
^{$ 7}^4,15^{0 +}^$17,2³⁵^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $}^74,1⁵⁰
Table 5. Tax Rates, Personal Exemptions, and Standard Deductions, 1993
^{Personal Exemptions}^$2,35⁰
^{Standard Dedu}^ctions
^Joint^$6,20⁰
^Single^3,70⁰
^{Head of Household}^5,45⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$70⁰
^{Single/Head of Household}⁹⁰⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^6,90⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^6,90^{0 - $}^89,1⁵⁰^$5,53^{5 +}²⁸^{% of the}^amount^{over $3}^6,90⁰
^{$ 8}^9,15^{0 - $}¹⁴^0,00⁰^$20,1⁶⁵^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^9,15⁰
^{$ 1}^40,0^{00 - $}²^50,0⁰⁰^$35,9²⁹^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^40,0⁰⁰
^{$ 2}^50,0^{00 +}^$75,5²⁹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^2,10⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^2,10^{0 - $5}^3,5⁰⁰^$3,31^{5 +}²⁸^{% of the}^amount^{over $2}^2,10⁰
^{$ 5}^3,50^{0 - $}¹¹^5,00⁰^$12,1⁰⁷^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $5}^3,50⁰
^{$ 1}^15,0^{00 - $}²^50,0⁰⁰^$31,1⁷²^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^15,0⁰⁰
^{$ 2}^50,0^{00 +}^$79,7⁷²^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^9,60⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^9,60^{0 - $}^76,4⁰⁰^$4,44^{0 +}²⁸^{% of the}^amount^{over $2}^9,60⁰
^{$ 7}^6,40^{0 - $}¹²^7,50⁰^$17,5⁴⁴^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $7}^6,40⁰

^{$ 1}^27,5^{00 - $}²^50,0⁰⁰^$33,3⁸⁵^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^27,5⁰⁰
^{$ 2}^50,0^{00 +}^$77,4⁸⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰
Table 6. Tax Rates, Personal Exemptions, and Standard Deductions, 1994
^{Personal Exemptions}^$2,45⁰
^{Standard Dedu}^ctions
^Joint^$6,35⁰
^Single^3,80⁰
^{Head of Household}^5,60⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$75⁰
^{Single/Head of Household}⁹⁵⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^8,00⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^8,00^{0 - $}^91,8⁵⁰^$5,70^{0 +}²⁸^{% of the}^amount^{over $3}^8,00⁰
^{$ 9}^1,85^{0 - $}¹⁴^0,00⁰^$20,7⁷⁸^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $9}^1,85⁰
^{$ 1}^40,0^{00 - $}²^50,0⁰⁰^$3^5,70^{5 +}^36%^{of the amo}^{unt o}^{ver $}¹⁴^0,00⁰
^{$ 2}^50,0^{00 +}^$75,3⁰⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^2,75⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^2,75^{0 - $}^55,1⁰⁰^$3,41^{3 +}²⁸^{% of the}^amount^{over $2}^2,75⁰
^{$ 5}^5,10^{0 - $}¹¹^5,00⁰^$12,4⁷¹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $5}^5,10⁰
^{$ 1}^15,0^{00 - $}²^50,0⁰⁰^$31,0⁴⁰^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^15,0⁰⁰
^{$ 2}^50,0^{00 +}^$79,6⁴⁰^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^0,50⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^0,50^{0 - $}^78,7⁰⁰^$4,57^{5 +}²⁸^{% of the}^amount^{over $3}^0,50⁰
^{$ 7}^8,70^{0 - $}¹²^7,50⁰^$18,0⁷¹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $7}^8,75⁰
^{$ 1}^27,5^{00 - $}²^50,0⁰⁰^$3^3,19^{9 +}^36%^{of the amo}^{unt o}^{ver $}¹²^7,50⁰
^{$ 2}^50,0^{00 +}^$77,2⁹⁹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^50,0⁰⁰

Table 7. Tax Rates, Personal Exemptions, and Standard Deductions, 1995
^{Personal Exemptions}^$2,50⁰
^{Standard Dedu}^ctions
^Joint^$6,55⁰
^Single^3,90⁰
^{Head of Household}^5,75⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$75⁰
^{Single/Head of Household}⁹⁵⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^9,00⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^9,00^{0 - $}^94,2⁵⁰^$5,85^{0 +}²⁸^{% of the}^amount^{over $3}^9,00⁰
^{$ 9}^4,25^{0 - $}¹⁴^3,60⁰^$21,3²⁰^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $9}^4,25⁰
^{$ 1}^43,6^{00 - $}²^56,5⁰⁰^$3^6,61^{9 +}^36%^{of the amo}^{unt o}^{ver $}¹⁴^3,60⁰
^{$ 2}^56,5^{00 +}^$77,2⁶³^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^56,5⁰⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^3,35⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^3,35^{0 - $}^56,5⁵⁰^$3,50^{3 +}²⁸^{% of the}^amount^{over $2}^3,35⁰
^{$ 5}^6,55^{0 - $}¹¹^7,95⁰^$12,7⁹⁹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $5}^6,55⁰
^{$ 1}^17,9^{50 - $}²^56,5⁰⁰^$31,8³³^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^17,9⁵⁰
^{$ 2}^56,5^{00 +}^$81,7¹¹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^56,5⁰⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^1,25⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^1,25^{0 - $}^80,7⁵⁰^$4,68^{8 +}²⁸^{% of the}^amount^{over $3}^1,25⁰
^{$ 8}^0,75^{0 - $}¹³^0,80⁰^$18,5⁴⁸^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^0,75⁰
^{$ 1}^30,8^{00 - $}²^56,5⁰⁰^$3^4,06^{3 +}^36%^{of the amo}^{unt o}^{ver $}¹³^0,80⁰
^{$ 2}^56,5^{00 +}^$79,3¹⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^56,5⁰⁰
Table 8. Tax Rates, Personal Exemptions, and Standard Deductions, 1996
^{Personal Exemptions}^$2,55⁰
^{Standard Dedu}^ctions
^Joint^$6,70⁰
^Single^4,00⁰
^{Head of Household}^5,90⁰

^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$80⁰
^{Single/Head of Household}^1,00⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^0,10⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^0,10^{0 - $}^96,9⁰⁰^$6,01^{5 +}²⁸^{% of the}^amount^{over $4}^0,10⁰
^{$ 9}^6,90^{0 - $}¹⁴^7,70⁰^$21,9¹⁹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $9}^6,90⁰
^{$ 1}^47,7^{00 - $}²^63,7⁵⁰^$3^7,66^{7 +}^36%^{of the amo}^{unt o}^{ver $}¹⁴^7,70⁰
^{$ 2}^63,7^{50 +}^$79,4⁴⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^63,7⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^4,00⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^4,00^{0 - $}^58,1⁵⁰^$3,60^{0 +}²⁸^{% of the}^amount^{over $2}^4,00⁰
^{$ 5}^8,15^{0 - $}¹²^1,30⁰^$13,1⁶²^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $5}^8,15⁰
^{$ 1}^21,3^{00 - $}²^63,7⁵⁰^$32,7³⁹^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^21,3⁰⁰
^{$ 2}^63,7^{50 +}^$84,0²¹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^63,7⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^2,15⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^2,15^{0 - $}^83,0⁵⁰^$4,82^{3 +}²⁸^{% of the}^amount^{over $3}^2,15⁰
^{$ 8}^3,05^{0 - $}¹³^4,50⁰^$19,0⁷⁵^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^3,05⁰
^{$ 1}^34,5^{00 - $}²^63,7⁵⁰^$3^5,02^{5 +}^36%^{of the amo}^{unt o}^{ver $}¹³^4,50⁰
^{$ 2}^63,7^{50 +}^$81,5⁵⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^63,7⁵⁰
Table 9. Tax Rates, Personal Exemptions, and Standard Deductions, 1997
^{Personal Exemptions}^$2,65⁰
^{Standard Dedu}^ctions
^Joint^$6,90⁰
^Single^4,15⁰
^{Head of Household}^6,05⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$80⁰
^{Single/Head of Household}^1,00⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^1,20⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^1,20^{0 - $}^99,6⁰⁰^$6,18^{0 +}²⁸^{% of the}^amount^{over $4}^1,20⁰
^{$ 9}^9,60^{0 - $}¹⁵^1,75⁰^$22,5³²^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $9}^9,60⁰

^{$ 1}^51,7^{50 - $}²^71,0⁵⁰^$3^8,69^{9 +}^36%^{of the amo}^{unt o}^{ver $}¹⁵^1,75⁰
^{$ 2}^71,0^{50 +}^$81,6⁴⁷^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^71,0⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^4,65⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^4,65^{0 - $}^59,7⁵⁰^$3,69^{8 +}²⁸^{% of the}^amount^{over $2}^4,65⁰
^{$ 5}^9,75^{0 - $}¹²^4,65⁰^$13,5²⁶^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $5}^9,75⁰
^{$ 1}^24,6^{50 - $}²^71,0⁵⁰^$33,6⁴⁵^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^24,6⁵⁰
^{$ 2}^71,0^{50 +}^$86,3⁴⁹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^71,0⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^3,05⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^3,05^{0 - $}^83,3⁵⁰^$4,95^{8 +}²⁸^{% of the}^amount^{over $3}^3,05⁰
^{$ 8}^3,35^{0 - $}¹³^8,20⁰^$19,6⁰²^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^5,35⁰
^{$ 1}^38,2^{00 - $}²^71,0⁵⁰^$3^5,98^{6 +}^36%^{of the amo}^{unt o}^{ver $}¹³^8,20⁰
^{$ 2}^71,0^{50 +}^$83,8¹²^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^71,0⁵⁰
Table 10. Tax Rates, Personal Exemptions, and Standard Deductions, 1998
^{Personal Exemptions}^$2,70⁰
^{Standard Dedu}^ctions
^Joint^$7,10⁰
^Single^4,25⁰
^{Head of Household}^6,25⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$85⁰
^{Single/Head of Household}^1,05⁰
^{Maginal Inco}^{me Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^2,35⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^2,35^{0 - $}¹⁰^2,30⁰^$6,35^{3 +}²⁸^{% of the}^amount^{over $4}^2,35⁰
^{$ 1}^02,3^{00 - $}¹^55,9⁵⁰^$23,1³⁹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $1}^02,3⁰⁰
^{$ 1}^55,9^{50 - $}²^78,4⁵⁰^$3^9,77^{0 +}^36%^{of the amo}^{unt o}^{ver $}¹⁵^5,95⁰
^{$ 2}^78,4^{50 +}^$83,8⁷⁰^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^78,4⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^5,35⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^5,35^{0 - $}^61,4⁰⁰^$3,80^{3 +}²⁸^{% of the}^amount^{over $2}^5,35⁰
^{$ 6}^1,40^{0 - $}¹²^8,10⁰^$13,8⁹⁷^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $6}^1,40⁰

^{$ 1}^28,1^{00 - $}²^78,4⁵⁰^$34,5⁷⁴^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^28,1⁰⁰
^{$ 2}^78,4^{50 +}^$88,7⁰⁰^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^78,4⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^3,95⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^3,95^{0 - $}^87,7⁰⁰^$5,09^{3 +}²⁸^{% of the}^amount^{over $3}^3,95⁰
^{$ 8}^7,70^{0 - $}¹⁴^2,00⁰^$20,1⁴³^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^7,70⁰
^{$ 1}^42,0^{00 - $}²^78,4⁵⁰^$3^6,97^{6+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^42,0⁰⁰
^{$ 2}^78,4^{50 +}^$86,0⁹⁸^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^78,4⁵⁰
Table 11. Tax Rates, Personal Exemptions, and Standard Deductions, 1999
^{Personal Exemptions}^$2,75⁰
^{Standard Dedu}^ctions
^Joint^$7,20⁰
^Single^4,30⁰
^{Head of Household}^6,35⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$85⁰
^{Single/Head of Household}^1,05⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^3,05⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^3,05^{0 - $}¹⁰^4,05⁰^$6,45^{8 +}²⁸^{% of the}^amount^{over $4}^3,05⁰
^{$ 1}^04,0^{50 - $}¹^58,5⁵⁰^$23,5³⁸^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $1}^04,0⁵⁰
^{$ 1}^58,5^{50 - $}²^83,1⁵⁰^$4^0,43^{3 +}^36%^{of the amo}^{unt o}^{ver $}¹⁵^8,55⁰
^{$ 2}^83,1^{50 +}^$85,2⁸⁹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^83,1⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^5,75⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^5,75^{0 - $}^62,4⁵⁰^$3,86^{3 +}²⁸^{% of the}^amount^{over $2}^5,75⁰
^{$ 6}^2,45^{0 - $}¹³^0,25⁰^$14,1³⁹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $6}^2,45⁰
^{$ 1}^30,2^{50 - $}²^83,1⁵⁰^$35,1⁵⁷^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^30,2⁵⁰
^{$ 2}^83,1^{50 +}^$90,2⁰¹^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^83,1⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^4,55⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^4,55^{0 - $}^89,1⁵⁰^$5,18^{3 +}²⁸^{% of the}^amount^{over $3}^4,55⁰
^{$ 8}^9,15^{0 - $}¹⁴^4,40⁰^$20,4⁷¹^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $8}^9,15⁰

^{$ 1}^44,4^{00 - $}²^83,1⁵⁰^$3^7,59^{8 +}^36%^{of the amo}^{unt o}^{ver $}¹⁴^4,44⁰
^{$ 2}^83,1^{50 +}^$87,5⁴⁸^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^83,1⁵⁰
Table 12. Tax Rates, Personal Exemptions, and Standard Deductions, 2000
^{Personal Exemptions}^$2,80⁰
^{Standard Dedu}^ctions
^Joint^$7,35⁰
^Single^4,40⁰
^{Head of Household}^6,45⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$85⁰
^{Single/Head of Household}^1,10⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^3,85⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^3,85^{0 - $}¹⁰^5,95⁰^$6,57^{8 +}²⁸^{% of the}^amount^{over $4}^3,85⁰
^{$ 1}^05,9^{50 - $}¹^61,4⁵⁰^$23,9⁶⁶^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $1}^05,9⁵⁰
^{$ 1}^61,4^{50 - $}²^88,3⁵⁰^$4^1,17^{1 +}^36%^{of the amo}^{unt o}^{ver $}¹⁶^1,45⁰
^{$ 2}^88,3^{50 +}^$86,8⁵⁵^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^88,3⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^6,25⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^6,25^{0 - $}^63,5⁵⁰^$3,93^{8 +}²⁸^{% of the}^amount^{over $2}^6,25⁰
^{$ 6}^3,55^{0 - $}¹³^2,60⁰^$14,3⁸²^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $6}^3,55⁰
^{$ 1}^32,6^{00 - $}²^88,3⁵⁰^$35,7⁸⁷^{+ 3}^{6% of t}^{he amou}^{nt ov}^{er $1}^32,6⁰⁰
^{$ 2}^88,3^{50 +}^$91,8⁵⁷^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^88,3⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^5,15⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^5,15^{0 - $}^90,8⁰⁰^$5,27^{3 +}²⁸^{% of the}^amount^{over $3}^5,15⁰
^{$ 9}^0,80^{0 - $}¹⁴^7,05⁰^$20,8⁵⁵^{+ 3}^{1% of t}^{he amou}^{nt ov}^{er $9}^0,80⁰
^{$ 1}^47,0^{50 - $}²^88,3⁵⁰^$3^8,29^{2 +}^36%^{of the amo}^{unt o}^{ver $}¹⁴^7,05⁰
^{$ 2}^88,3^{50 +}^$89,1⁶⁰^{+ 3}^{9.6% of t}^{he amou}^nt^{over $2}^88,3⁵⁰

Table 13. Tax Rates, Personal Exemptions, and Standard Deductions, 2001
^{Personal Exemptions}^$2,90⁰
^{Standard Dedu}^ctions
^Joint^$7,60⁰
^Single^4,55⁰
^{Head of Household}^6,65⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind}
^Joint^$90⁰
^{Single/Head of Household}^1,10⁰
^{Marginal Inc}^{ome Tax Rates, Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}⁴^5,20⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 4}^5,20^{0 - $}¹⁰^9,25⁰^$6,78^{0 +}^27.5^{% of th}^{e amoun}^{t over $4}^5,20⁰
^{$ 1}^09,2^{50 - $}¹^66,5⁰⁰^$24,3⁹⁴^{+ 3}^{0.5% of t}^{he amou}^nt^{over $1}^09,2⁵⁰
^{$ 1}^66,5^{00 - $}²^97,3⁵⁰^$4^1,85^{5 +}^35.5%^{of the a}^mount^{over $1}^66,5⁰⁰
^{$ 2}^97,3^{50 +}^$88,3⁰⁷^{+ 3}^{9.1% of t}^{he amou}^nt^{over $2}^97,3⁵⁰
^{Marginal Inc}^{ome Tax Rates, Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}²^7,05⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 2}^7,05^{0 - $}^65,5⁵⁰^$4,05^{8 +}^27.5^{% of th}^{e amoun}^{t over $2}^7,05⁰
^{$ 6}^5,55^{0 - $}¹³^6,75⁰^$14,6⁴⁶^{+ 3}^{0.5% of t}^{he amou}^nt^{over $6}^5,55⁰
^{$ 1}^36,7^{50 - $}²^97,3⁵⁰^$36,3⁶²^{+ 3}^{5.5% of t}^{he amou}^nt^{over $1}^36,7⁵⁰
^{$ 2}^97,3^{50 +}^$93,3⁷⁵^{+ 3}^{9.1% of t}^{he amou}^nt^{over $2}^97,3⁵⁰
^{Marginal Inc}^{ome Tax Rates, Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0 - $}³^6,25⁰^{15% of}^{the amo}^{unt over}^{$ 0}
^{$ 3}^6,25^{0 - $}^93,6⁵⁰^$5,43^{8 +}^27.5^{% of th}^{e amoun}^{t over $3}^6,25⁰
^{$ 9}^3,65^{0 - $}¹⁵^1,65⁰^$21,2²³^{+ 3}^{0.5% of t}^{he amou}^nt^{over $9}^3,65⁰
^{$ 1}^51,6^{50 - $}²^97,3⁵⁰^$3^8,91^{3 +}^35.5%^{of the a}^mount^{over $1}^51,6⁵⁰
^{$ 2}^97,3^{50 +}^$90,6³⁷^{+ 3}^{9.1% of t}^{he amou}^nt^{over $2}^97,3⁵⁰
Table 14. Personal Exemptions and Standard Deductions, 2002
^{Personal Exemptions}^$3,00⁰
^{Standard Dedu}^ctions:
^Joint^$7,85⁰
^Single^$4,70⁰
^{Head of Household}^$6,90⁰

^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^Joint^$90⁰
^{Single/Head of Household}^$1,15⁰
Table 15. Marginal Income Tax Rates, 2002
^{Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0}^to^$12,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$12,0⁰⁰^to^$46,7⁰⁰^$1,20⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^12,0⁰⁰
^$46,7⁰⁰^to^$11^2,85⁰^$6,40⁵^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^46,7⁰⁰
^$11^2,85⁰^to^$17^1,95⁰^$24,2⁶⁶^plus³⁰^{% of the}^amount^{over $1}^12,8⁵⁰
^$17^1,95⁰^to^$30^7,05⁰^$41,9⁹⁶^plus³⁵^{% of the}^amount^{over $1}^71,9⁵⁰
^$30^7,05⁰^plus^$89,2⁸¹^plus^38.6^{% of th}^{e amoun}^{t over $3}^07,0⁵⁰
^{Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^$0^to^$6,00⁰^{10% of}^{the amo}^{unt over}^$0
^$6,00⁰^to^$27,9⁵⁰^$60^{0 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $6,0}⁰⁰
^$27,9⁵⁰^to^$67,7⁰⁰^$3,89³^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^27,9⁵⁰
^$67,7⁰⁰^to^$14^1,25⁰^$14,6²⁶^plus³⁰^{% of the}^amount^{over $6}^7,70⁰
^$14^1,25⁰^to^$30^7,05⁰^$36,6⁹¹^plus³⁵^{% of the}^amount^{over $1}^41,2⁵⁰
^$30^7,05⁰^plus^$94,7²¹^plus^38.6^{% of th}^{e amoun}^{t over $3}^07,0⁵⁰
^{Heads of Households}
^If^{taxable income}^is:^Then,^tax^is:
^$0^to^$10,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$10,0⁰⁰^to^$37,4⁵⁰^$1,00⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,0⁰⁰
^$37,4⁵⁰^to^$96,7⁰⁰^$5,11⁸^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^37,4⁵⁰
^$96,7⁰⁰^to^$15^6,60⁰^$21,1¹⁶^plus³⁰^{% of the}^amount^{over $9}^6,70⁰
^$15^6,60⁰^to^$30^7,05⁰^$39,0⁸⁶^plus³⁵^{% of the}^amount^{over $1}^56,6⁰⁰
^$30^7,05⁰^plus^$91,7⁴⁴^plus^38.6^{% of th}^{e amoun}^{t over $3}^07,0⁵⁰
Table 16. Marginal Income Tax Rates, 2003 Under Prior Law
^(Pre-^{Jobs and}^{Growth Tax Re}^{lief Reconc}^ili^{ation A}^c^t)
^{Joint Returns}
^If^{taxable income}^is:^Then,^tax^is:
^{$ 0}^to^$12,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$12,0⁰⁰^to^$47,4⁵⁰^$1,20⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^12,0⁰⁰
^$47,4⁵⁰^to^$11^4,65⁰^$6,51⁸^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^47,4⁵⁰
^$11^4,65⁰^to^$17^4,70⁰^$24,6⁶²^plus³⁰^{% of the}^amount^{over $1}^14,6⁵⁰

^$17^4,70^{0 to}^$31^1,95⁰^$42,6⁷⁷^plus³⁵^{% of the}^amount^{over $1}^74,7⁰⁰
^$31^1,95⁰^plus^$90,7¹⁴^plus^38.6^{% of th}^{e amoun}^{t over $3}^11,9⁵⁰
^{Standard Deduction for a joint return}^{was $}^7,95⁰
^{Single Returns}
^If^{taxable income}^is:^Then,^tax^is:
^$0^to^$6,00⁰^{10% of}^{the amo}^{unt over}^$0
^$6,00⁰^to^$28,4⁰⁰^$60^{0 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $6,0}⁰⁰
^$28,4⁰⁰^to^$68,8⁰⁰^$3,96⁰^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^28,4⁰⁰
^$68,8⁰⁰^to^$14^3,50⁰^$14,8⁶⁸^plus³⁰^{% of the}^amount^{over $6}^8,80⁰
^$14^3,50⁰^to^$31^1,95⁰^$37,2⁷⁸^plus³⁵^{% of the}^amount^{over $1}^43,5⁰⁰
^$31^1,95⁰^plus^$96,2³⁶^plus^38.6^{% of th}^{e amoun}^{t over $3}^11,9⁵⁰
^{Standard deduction for a single r}^eturn^{is $4,7}⁵⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$10,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$10,0⁰⁰^to^$38,0⁵⁰^$1,00⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,0⁰⁰
^$38,0⁵⁰^to^$98,2⁵⁰^$5,20⁸^{plus 2}^{7% of t}^{he amou}^{nt o}^{ver $}^38,0⁵⁰
^$98,2⁵⁰^to^$15^9,10⁰^$21,4⁶²^plus³⁰^{% of the}^amount^{over $9}^8,25⁰
^$15^9,10⁰^to^$31^1,95⁰^$39,7¹⁷^plus³⁵^{% of the}^amount^{over $1}^59,1⁰⁰
^$31^1,95⁰^plus^$93,2¹⁴^plus^38.6^{% of th}^{e amoun}^{t over $3}^11,9⁵⁰
^{Standard deduction for head of}^h^{ousehold retur}^{n is $7,}⁰⁰⁰
Table 17. Personal Exemptions and Standard Deductions, Limitation on Itemized
Deductions, and the Personal Exemption Phaseout, 2003
^{Personal Exemptions}^$3,05⁰
^{Standard Dedu}^ctions:
^Joint^$9,50⁰
^Single^$4,75⁰
^{Head of Household}^$7,00⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^Joint^$95⁰
^{Single/Head of Household}^$1,15⁰
^{Limitation on itemized de}^ductions:^$13^9,50⁰
^{Phase out of}^person^{al exemptions:}
^Joint^$20^9,25⁰
^{Head of house}^hold^$17^4,40⁰
^Single^$13^9,50⁰

Table 18. Marginal Income Tax Rates, 2003
^{Joint Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^{$ 0}^to^$14,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$14,0⁰⁰^to^$56,8⁰⁰^$1,40⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^14,0⁰⁰
^$56,8⁰⁰^to^$11^4,65⁰^$7,82⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^56,8⁰⁰
^$11^4,65⁰^to^$17^4,70⁰^$22,2⁸³^plus²⁸^{% of the}^amount^{over $1}^14,6⁵⁰
^$17^4,70⁰^to^$31^1,95⁰^$39,0⁹⁷^plus³³^{% of the}^amount^{over $1}^74,7⁰⁰
^$31^1,95⁰^plus^$84,3⁹⁰^plus³⁵^{% of the}^amount^{over $3}^11,9⁵⁰
^{Single Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$7,00⁰^{10% of}^{the amo}^{unt over}^$0
^$7,00⁰^to^$28,4⁰⁰^$70^{0 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $7,0}⁰⁰
^$28,4⁰⁰^to^$68,8⁰⁰^$3,91⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^28,4⁰⁰
^$68,8⁰⁰^to^$14^3,50⁰^$14,0¹⁰^plus²⁸^{% of the}^amount^{over $6}^8,80⁰
^$14^3,50⁰^to^$31^1,95⁰^$34,9²⁶^plus³³^{% of the}^amount^{over $1}^43,5⁰⁰
^$31^1,95⁰^plus^$90,5¹⁵^plus³⁵^{% of the}^amount^{over $3}^11,9⁵⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$10,0⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$10,0⁰⁰^to^$38,0⁵⁰^$1,00⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,0⁰⁰
^$38,0⁵⁰^to^$98,2⁵⁰^$5,20⁸^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^38,0⁵⁰
^$98,2⁵⁰^to^$15^9,10⁰^$20,2⁵⁸^plus²⁸^{% of the}^amount^{over $9}^8,25⁰
^$15^9,10⁰^to^$31^1,95⁰^$37,2⁹⁶^plus³³^{% of the}^amount^{over $1}^59,1⁰⁰
^$31^1,95⁰^plus^$87,7³⁷^plus³⁵^{% of the}^amount^{over $3}^11,9⁵⁰
Table 19. Personal Exemptions and Standard Deductions, Limitation on Itemized
Deductions, and the Personal Exemption Phaseout, 2004
^{Personal Exemptions}^$3,10⁰
^{Standard Dedu}^ctions:
^Joint^$9,70⁰
^Single^$4,85⁰
^{Head of Household}^$7,15⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^Joint^$95⁰
^{Single/Head of Household}^$1,20⁰
^{Limitation on itemized de}^ductions:^$14^2,70⁰
^{Phase out of}^person^{al exemptions:}
^Joint^$21^4,05⁰

^{Head of house}^hold^$17^8,35⁰
^Single^$14^2,70⁰
Table 20. Marginal Income Tax Rates, 2004
^{Joint Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^{$ 0}^to^$14,3⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$14,3⁰⁰^to^$58,1⁰⁰^$1,43⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^14,3⁰⁰
^$58,1⁰⁰^to^$11^7,25⁰^$8,00⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^58,1⁰⁰
^$11^7,25⁰^to^$17^8,65⁰^$22,7⁸⁸^plus²⁸^{% of the}^amount^{over $1}^17,2⁵⁰
^$17^8,65⁰^to^$31^9,10⁰^$39,9⁸⁰^plus³³^{% of the}^amount^{over $1}^78,6⁵⁰
^$31^9,10⁰^plus^$86,3²⁸^plus³⁵^{% of the}^amount^{over $3}^19,1⁰⁰
^{Single Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$7,15⁰^{10% of}^{the amo}^{unt over}^$0
^$7,15⁰^to^$29,0⁵⁰^$71^{5 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $7,1}⁵⁰
^$29,0⁵⁰^to^$70,3⁵⁰^$4,00⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^29,0⁵⁰
^$70,3⁵⁰^to^$14^6,75⁰^$14,3²⁵^plus²⁸^{% of the}^amount^{over $7}^0,35⁰
^$14^6,75⁰^to^$31^9,10⁰^$35,7¹⁷^plus³³^{% of the}^amount^{over $1}^46,7⁵⁰
^$31^9,10⁰^plus^$92,5⁹³^plus³⁵^{% of the}^amount^{over $3}^19,1⁰⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$10,2⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$10,2⁰⁰^to^$38,9⁰⁰^$1,02⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,2⁰⁰
^$38,9⁰⁰^to^$10^0,50⁰^$5,32⁵^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^38,9⁰⁰
^$10^0,50⁰^to^$16^2,70⁰^$20,7²⁵^plus²⁸^{% of the}^amount^{over $1}^00,5⁰⁰
^$16^2,70⁰^to^$31^9,10⁰^$38,1⁴¹^plus³³^{% of the}^amount^{over $1}^62,7⁰⁰
^$31^9,10⁰^plus^$89,7⁵³^plus³⁵^{% of the}^amount^{over $3}^19,1⁰⁰
Table 21. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions and the Personal Exemption Phase Out Thresholds, 2005
^{Personal Exemptions}^$3,20⁰
^{Standard Dedu}^ctions:
^Joint^$10,0⁰⁰
^Single^$5,00⁰
^{Head of Household}^$7,30⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^{Joint (each spou}^se)^$1,00⁰
^{Single/Head of Household}^$1,25⁰

^{Limitation on itemized de}^ductions:^$14^5,95⁰
^{Phase out of}^person^{al exemptions:}
^Joint^$21^8,95⁰
^{Head of house}^hold^$18^2,45⁰
^Single^$14^5,95⁰
Table 22. Marginal Income Tax Rates, 2005
^{Joint Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^{$ 0}^to^$14,6⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$14,6⁰⁰^to^$59,4⁰⁰^$1,46⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^14,6⁰⁰
^$59,4⁰⁰^to^$11^9,95⁰^$8,18⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^59,4⁰⁰
^$11^9,95⁰^to^$18^2,80⁰^$23,3¹⁸^plus²⁸^{% of the}^amount^{over $1}^19,9⁵⁰
^$18^2,80⁰^to^$32^6,45⁰^$40,9¹⁶^plus³³^{% of the}^amount^{over $1}^82,8⁰⁰
^$32^6,45⁰^plus^$88,3²¹^plus³⁵^{% of the}^amount^{over $3}^26,4⁵⁰
^{Single Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$7,30⁰^{10% of}^{the amo}^{unt over}^$0
^$7,30⁰^to^$29,7⁰⁰^$73^{0 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $7,3}⁰⁰
^$29,7⁰⁰^to^$71,9⁵⁰^$4,09⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^29,7⁰⁰
^$71,9⁵⁰^to^$15^0,15⁰^$14,6⁵³^plus²⁸^{% of the}^amount^{over $7}^1,95⁰
^$15^0,15⁰^to^$32^6,45⁰^$36,5⁴⁹^plus³³^{% of the}^amount^{over $1}^50,1⁵⁰
^$32^6,45⁰^plus^$94,7²⁸^plus³⁵^{% of the}^amount^{over $3}^26,4⁵⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$10,4⁵⁰^{10% of}^{the amo}^{unt over}^$0
^$10,4⁵⁰^to^$39,8⁰⁰^$1,04⁵^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,4⁵⁰
^$39,8⁰⁰^to^$10^2,80⁰^$5,44⁸^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^39,8⁰⁰
^$10^2,80⁰^to^$16^6,45⁰^$21,1⁹⁸^plus²⁸^{% of the}^amount^{over $1}^02,8⁰⁰
^$16^6,45⁰^to^$32^6,45⁰^$39,0²⁰^plus³³^{% of the}^amount^{over $1}^66,4⁵⁰
^$32^6,45⁰^plus^$91,8²⁰^plus³⁵^{% of the}^amount^{over $3}^26,4⁵⁰
Table 23. 2005 EITC Indexed Levels
^No^One^Two^{or More}
^Children^Child^Children
^{Credit Rate}^7.65%^34%^40%
^{Maximum credit}^earning^s^$5,22⁰^$7,83⁰^$11,0⁰⁰
^{Maximum credit}^$39⁹^$2,66²^$4,40⁰
^{Credit phaseout}^rate^7.65%^15.9^8%^21.0^6%

^No^One^Two^{or More}
^Children^Child^Children
^{Phaseout Range:}
^$6,53⁰^$14,3⁷⁰^$14,3⁷⁰
^$11,7⁵⁰^$31,0³⁰^$35,2⁶³
^{Phaseout Range, Mar}^{ried Couples:}
^{Start $8,53}⁰^$16,3⁷⁰^$16,3⁷⁰
^{End $13,7}⁵⁰^$33,0³⁰^$37,2⁶³
^Note:^{For more information on the ear}^{ned income tax}^{credit, see CRS Report RL317}^68,^{The Earned Income Tax}
^{Credit (EIT}^{C): 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}^$3,30⁰
^{Standard Dedu}^ctions:
^Joint^$10,3⁰⁰
^Single^$5,15⁰
^{Head of Household}^$7,55⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^{Joint (each spou}^se)^$1,00⁰
^{Single/Head of Household}^$1,25⁰
^{Limitation on itemized de}^ductions:^$15^0,50⁰
^{Phase out of}^person^{al exemptions:}
^Joint^$22^5,75⁰
^{Head of house}^hold^$18^8,15⁰
^Single^$15^0,50⁰
Table 25. Marginal Income Tax Rates, 2006
^{Joint Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^{$ 0}^to^$15,1⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$15,1⁰⁰^to^$61,3⁰⁰^$1,51⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^15,1⁰⁰
^$61,3⁰⁰^to^$12^3,70⁰^$8,44⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^61,3⁰⁰
^$12^3,70⁰^to^$18^8,45⁰^$24,0⁴⁰^plus²⁸^{% of the}^amount^{over $1}^23,7⁰⁰
^$18^8,45⁰^to^$33^6,55⁰^$42,1⁷⁰^plus³³^{% of the}^amount^{over $1}^88,4⁵⁰
^$33^6,55⁰^plus^$91,0⁴³^plus³⁵^{% of the}^amount^{over $3}^36,5⁵⁰
^{Single Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$7,55⁰^{10% of}^{the amo}^{unt over}^$0

^$7,55^{0 to}^$30,6⁵⁰^$75^{5 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $7,5}⁵⁰
^$30,6⁵⁰^to^$74,2⁰⁰^$4,22⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^30,6⁵⁰
^$74,2⁰⁰^to^$15^4,80⁰^$15,1⁰⁸^plus²⁸^{% of the}^amount^{over $7}^4,20⁰
^$15^4,80⁰^to^$33^6,55⁰^$37,6⁷⁶^plus³³^{% of the}^amount^{over $1}^54,8⁰⁰
^$33^6,55⁰^plus^$97,6⁵³^plus³⁵^{% of the}^amount^{over $3}^36,5⁵⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$10,7⁵⁰^{10% of}^{the amo}^{unt over}^$0
^$10,7⁵⁰^to^$41,0⁵⁰^$1,07⁵^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^10,7⁵⁰
^$41,0⁵⁰^to^$10^6,00⁰^$5,62⁰^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^41,0⁵⁰
^$10^6,00⁰^to^$17^1,65⁰^$21,8⁵⁸^plus²⁸^{% of the}^amount^{over $1}^06,0⁰⁰
^$17^1,65⁰^to^$33^6,55⁰^$40,2⁴⁰^plus³³^{% of the}^amount^{over $1}^71,6⁵⁰
^$33^6,55⁰^plus^$94,6⁵⁷^plus³⁵^{% of the}^amount^{over $3}^36,5⁵⁰
Table 26. 2006 EITC Indexed Levels
^No^One^Two^{or More}
^Children^Child^Children
^{Credit Rate}^7.65%^34%^40%
^{Maximum credit}^earning^s^$5,38⁰^$8,08⁰^$11,3⁴⁰
^{Maximum credit}^$41²^$2,74⁷^$4,53⁶
^{Credit phaseout}^rate^7.65%^15.9^8%^21.0^6%
^{Phaseout Range:}
^$6,74⁰^$14,8¹⁰^$14,8¹⁰
^$12,1²⁰^$32,0⁰¹^$36,3⁴⁸
^{Phaseout Range, Mar}^{ried Couples:}
^{Start $8,74}⁰^$16,8¹⁰^$16,8¹⁰
^{End $14,1}²⁰^$34,0⁰¹^$38,3⁴⁸
^Note:^{For more information on the ear}^{ned income tax}^{credit, see CRS Report RL317}^68,^{The Earned Income Tax}
^{Credit (EIT}^{C): 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}^$3,40⁰
^{Standard Dedu}^ctions:
^Joint^$10,7⁰⁰
^Single^$5,35⁰
^{Head of Household}^$7,85⁰
^{Additional Standard}^{Deductions f}^{or the Elderly and}^{the Blind:}
^{Joint (each spou}^se)^$1,05⁰

^{Single/Head of Household}^$1,30⁰
^Limitat^{ion on itemized deductions:}^$15^6,40⁰
^{Phase out of}^person^{al exemptions:}
^Joint^$23^4,60⁰
^{Head of house}^hold^$19^5,50⁰
^Single^$15^6,40⁰
^Note:^Prel^{iminary, based on info}^{rmation contained in “A Summa}^r^y^{of 20}⁰⁷^{Inflation Adjustme}^{nts I}^mpacting
^{Individuals,” by James C. Young,}^{Tax Notes Today}^{, Septem}^ber^{18, 2}^006.
Table 28. Marginal Income Tax Rates, 2007
^{Joint Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^{$ 0}^to^$15,6⁵⁰^{10% of}^{the amo}^{unt over}^$0
^$15,6⁵⁰^to^$63,7⁰⁰^$1,56⁵^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^15,6⁵⁰
^$63,7⁰⁰^to^$12^8,50⁰^$8,77³^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^63,7⁰⁰
^$12^8,50⁰^to^$19^5,85⁰^$24,9⁷³^plus²⁸^{% of the}^amount^{over $1}^28,5⁰⁰
^$19^5,85⁰^to^$34^9,70⁰^$43,8³¹^plus³³^{% of the}^amount^{over $1}^95,8⁵⁰
^$34^9,70⁰^plus^$94,6⁰¹^plus³⁵^{% of the}^amount^{over $3}^49,7⁰⁰
^{Single Returns}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$7,82⁵^{10% of}^{the amo}^{unt over}^$0
^$7,82⁵^to^$31,8⁵⁰^$78^{3 pl}^{us 1}^{5% of t}^{he amou}^{nt ov}^{er $7,8}²⁵
^$31,8⁵⁰^to^$77,1⁰⁰^$4,38⁶^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^31,8⁵⁰
^$77,1⁰⁰^to^$16^0,85⁰^$15,6⁹⁹^plus²⁸^{% of the}^amount^{over $7}^7,10⁰
^$16^0,85⁰^to^$34^9,70⁰^$39,1⁴⁹^plus³³^{% of the}^amount^{over $1}^60,8⁵⁰
^$34^9,70⁰^plus^$10^1,46⁹^{plus 3}^{5% of t}^{he amou}^nt^{over $3}^49,7⁰⁰
^{Heads of Households}
^If^t^{axable income}^is:^Then,^tax^is:
^$0^to^$11,2⁰⁰^{10% of}^{the amo}^{unt over}^$0
^$11,2⁰⁰^to^$42,6⁵⁰^$1,12⁰^{plus 1}^{5% of t}^{he amou}^{nt o}^{ver $}^11,2⁰⁰
^$42,6⁵⁰^to^$11^0,10⁰^$5,83⁸^{plus 2}^{5% of t}^{he amou}^{nt o}^{ver $}^42,6⁵⁰
^$11^0,10⁰^to^$17^8,35⁰^$22,7⁰⁰^plus²⁸^{% of the}^amount^{over $1}^10,1⁰⁰
^$17^8,35⁰^to^$34^9,70⁰^$41,8¹⁰^plus³³^{% of the}^amount^{over $1}^78,3⁵⁰
^$34^9,70⁰^plus^$98,3⁵⁶^plus³⁵^{% of the}^amount^{over $3}^49,7⁰⁰
^Note:^Prel^{iminary, based on info}^{rmation contained in “A Summa}^r^y^{of 20}⁰⁷^{Inflation Adjustme}^{nts I}^mpacting
^{Individuals,” by James C. Young,}^{Tax Notes Today}^{, Septem}^ber^{18, 2}^006.

^G^r^e^g^g^A.^E^s^eⁿ^weⁱⁿ