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Income-tax rates are unchanged for 2007, but, as happens every year, the Internal Revenue Service has adjusted tax brackets to account for inflation.
Expanding the brackets means that a touch more of your income will be taxed at lower rates than might have been the case 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 tax brackets, standard deductions, personal exemptions, earned-income credits and other things affect about three dozen areas of tax rules.
The IRS publishes the next year's tax rates in the fall.
So 2008 tax brackets, as well as amounts for standard deductions, personal exemptions and other tax areas, are already published.
You can get more information on 2008 tax law changes here.
| These tables can help you estimate your tax bill | ||
|---|---|---|
For single taxpayers | ||
If your taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $7,825 | 10% of the amount over $0 |
$7,826 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,851 | $77,100 | $4,386.25 plus 25% of the amount over $31,850 |
$77,101 | $160,850 | $15,698.75 plus 28% of the amount over $77,100 |
$160,851 | $349,700 | $39,148.75 plus 33% of the amount over $160,850 |
$349,701 | No limit | $101,469.25 plus 35% of the amount over $349,700 |
For married couples filing jointly* | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $15,650 | 10% of the amount over $0 |
$15,651 | $63,700 | $1,565 plus 15% of the amount over $15,650 |
$63,701 | $128,500 | $8,772.50 plus 25% of the amount over $63,700 |
$128,501 | $195,850 | $24,972.50 plus 28% of the amount over $128,500 |
$195,851 | $349,700 | $43,830.50 plus 33% of the amount over $195,850 |
$349,701 | No limit | $94,601 plus 35% of the amount over $349,700 |
* Or qualifying widow or widower | ||
For married couples filing separately | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $7,825 | 10% of the amount over $0 |
$7,826 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,851 | $64,250 | $4,386.25 plus 25% of the amount over $31,850 |
$64,251 | $97,925 | $12,486.25 plus 28% of the amount over $64,250 |
$97,926 | $174,850 | $21,915.25 plus 33% of the amount over $97,925 |
$174,851 | No limit | $47,300.50 plus 35% of the amount over $174,850 |
For heads of households | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $11,200 | 10% of the amount over $0 |
$11,201 | $42,650 | $1,120 plus 15% of the amount over $11,200 |
$42,651 | $110,100 | $5,837.50 plus 25% of the amount over $42,650 |
$110,101 | $178,350 | $22,700 plus 28% of the amount over $110,100 |
$178,351 | $349,700 | $41,810 plus 33% of the amount over $178,350 |
$349,701 | No limit | $98,355.50 plus 35% of the amount over $349,700 |
Here is how the brackets change in 2008.
| These tables can help you estimate your tax bill | ||
|---|---|---|
For single taxpayers | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $8,025 | 10% of the amount over $0 |
$8,026 | $32,550 | $802.50 plus 15% of the amount over $8,025 |
$32,551 | $78,850 | $4,481.25 plus 25% of the amount over $32,550 |
$78,851 | $164,550 | $16,056.25 plus 28% of the amount over $78,850 |
$164,551 | $357,700 | $40,052.25 plus 33% of the amount over $164,550 |
$357,701 | No limit | $103,791.75 plus 35% of the amount over $357,700 |
For married couples filing jointly* | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $16,050 | 10% of the amount over $0 |
$16,051 | $65,100 | $1,605 plus 15% of the amount over $16,050 |
$65,101 | $131,450 | $8,962.50 plus 25% of the amount over $65,100 |
$131,451 | $200,300 | $25,550 plus 28% of the amount over $131,450 |
$200,301 | $357,700 | $44,828 plus 33% of the amount over $200,300 |
$357,701 | No limit | $96,770 plus 35% of the amount over $357,700 |
* Or qualifying widow or widower | ||
For married couples filing separately | ||
If taxable income is at least . . . | But not more than . . . | Your tax is: |
$0 | $8,025 | 10% of the amount over $0 |
$8,025 | $32,550 | $802.50 plus 15% of the amount over $8,025 |
$32,551 | $65,725 | $4,481.25 plus 25% of the amount over $32,550 |
$65,726 | $100,150 | $12,775 plus 28% of the amount over $65,725 |
$100,151 | $178,850 | $22,414 plus 33% of the amount over $100,150 |
$178,851 | No limit | $48,385 plus 35% of the amount over $178,850 |
For heads of households | ||
If taxable income is more than . . . | But not more than . . . | Your tax is: |
$0 | $11,450 | 10% of the amount over $0 |
$11,451 | $43,650 | $1,145 plus 15% of the amount over $11,450 |
$43,651 | $112,650 | $5,975 plus 25% of the amount over $43,650 |
$112,651 | $182,400 | $23,225 plus 28% of the amount over $112,650 |
$182,401 | $357,700 | $42,755 plus 33% of the amount over $182,400 |
$357,701 | No limit | $100,605 plus 35% of the amount over $357,700 |
Published Dec. 6, 2007
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