advertisement
Income tax rates are unchanged for 2006, compared with 2005. But, as happens every year, the Internal Revenue Service has adjusted income tax brackets for inflation.
Expanding the brackets means that a touch more of your income will be taxed at lower rates than might have occurred last year. That will mean savings for you.
The IRS is required by law to adjust the dollar amounts for a variety of tax provisions each year to keep pace with inflation.
The adjustments of everything from tax brackets and standard deductions to personal exemptions and earned income credits, affect some 36 different areas of tax rules.
The IRS publishes the next year's tax rates each year in the last fall. So 2007 tax brackets, as well as amounts for standard deductions, personal exemptions and other tax areas, are already published.
You can get more information here.
| These tables can help you estimate your tax bill | ||
|---|---|---|
For single taxpayers | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $7,550 | 10% of the amount over $0 |
$7,550 | $30,650 | $755 plus 15% of the amount over $7,550 |
$30,650 | $74,200 | $4,220 plus 25% of the amount over $30,650 |
$74,200 | $154,800 | $15,107.50 plus 28% of the amount over $74,200 |
$154,800 | $336,550 | $37,675.50 plus 33% of the amount over $154,800 |
$336,550 | no limit | $97,653 plus 35% of the amount over $336,550 |
For married couples filing jointly* | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $15,100 | 10% of the amount over $0 |
$15,100 | $61,300 | $1,510 plus 15% of the amount over $15,100 |
$61,300 | $123,700 | $8,440 plus 25% of the amount over $61,300 |
$123,700 | $188,450 | $24,040 plus 28% of the amount over $123,700 |
$188,450 | $336,550 | $42,170 plus 33% of the amount over $188,450 |
$336,550 | no limit | $91,043 plus 35% of the amount over $336,550 |
* Or qualifying widow(er) | ||
For married couples filing separately | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $7,550 | 10% of the amount over $0 |
$7,550 | $30,650 | $755 plus 15% of the amount over $7,550 |
$30,650 | $61,850 | $4,220 plus 25% of the amount over $30,650 |
$61,850 | $94,225 | $12,020 plus 28% of the amount over $61,850 |
$94,225 | $168,275 | $21,085 plus 33% of the amount over $94,225 |
$168,275 | no limit | $45,521.50 plus 35% of the amount over $168,275 |
For heads of households | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $10,750 | 10% of the amount over $0 |
$10,750 | $41,050 | $1,075 plus 15% of the amount over $10,750 |
$41,050 | $106,000 | $5,620 plus 25% of the amount over $41,050 |
$106,000 | $171,650 | $21,857.50 plus 28% of the amount over $106,000 |
$171,650 | $336,550 | $40,239.50 plus 33% of the amount over $171,650 |
$336,550 | no limit | $94,656.50 plus 35% of the amount over $336,550 |
For those of you who can't wait to find out what the brackets will be next year:
| These tables can help you estimate your tax bill | ||
|---|---|---|
For single taxpayers | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $7,825 | 10% of the amount over $0 |
$7,825 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,850 | $77,100 | $4,386.25 plus 25% of the amount over $31,850 |
$77,100 | $160,850 | $15,698.75 plus 28% of the amount over $77,100 |
$160,850 | $349,700 | $39,148.75 plus 33% of the amount over $160,850 |
$349,700 | no limit | $101,469.25 plus 35% of the amount over $349,700 |
For married couples filing jointly* | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $15,650 | 10% of the amount over $0 |
$15,650 | $63,700 | $1,565 plus 15% of the amount over $15,650 |
$63,700 | $128,500 | $8,772.50 plus 25% of the amount over $63,700 |
$128,500 | $195,850 | $24,972.50 plus 28% of the amount over $128,500 |
$195,850 | $349,700 | $43,830.50 plus 33% of the amount over $195,850 |
$349,700 | no limit | $94,601 plus 35% of the amount over $349,700 |
* Or qualifying widow(er) | ||
For married couples filing separately | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $7,825 | 10% of the amount over $0 |
$7,825 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,850 | $64,250 | $4,386.25 plus 25% of the amount over $31,850 |
$64,250 | $97,925 | $12,486.25 plus 28% of the amount over $64,250 |
$97,925 | $174,850 | $21,915.25 plus 33% of the amount over $97,925 |
$174,850 | no limit | $47,300.50 plus 35% of the amount over $174,850 |
For heads of households | ||
If taxable income is over -- | But not over -- | The tax is: |
$0 | $11,200 | 10% of the amount over $0 |
$11,200 | $42,650 | $1,120 plus 15% of the amount over $11,200 |
$42,650 | $110,100 | $5,837.50 plus 25% of the amount over $42,650 |
$110,100 | $178,350 | $22,700 plus 28% of the amount over $110,100 |
$178,350 | $349,700 | $41,810 plus 33% of the amount over $178,350 |
$349,700 | no limit | $98,355.50 plus 35% of the amount over $349,700 |
Rate this Article
High
