Tuesday, January 09, 2007

2006 Tax Rates and Brackets

I received my Federal income tax forms last week. The 2006 tax rates have a 3.1% inflation adjustment versus the 2005 tax rates. For reference, here are the tax rates and brackets for 2006.

2006 Tax Rates and Brackets

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


This is not financial or tax advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

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