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Statutory individual income tax rates are the tax rates that apply by law to various amounts of taxable income. Statutory rates form the basis of marginal effective and average effective tax rates, which most economists believe have a greater impact on the economic behavior of companies and individuals than do statutory rates. Marginal effective rates capture the net effect of special tax provisions on statutory rates. They differ from average effective rates, which measure someone's overall income tax burden.
Current statutory and effective individual tax rates are the result ofFederal Individual Income Tax Brackets,
February 16, 2021
Standard Deduction, and Personal Exemption: Gary Guenther
1988 to 2021
Analyst in Public Finance
This report tracks changes in federal individual income tax brackets, the standard deduction, and the personal exemption since 1988. All three have been indexed for inflation since 1981. The
report also explains how certain tax provisions are adjusted for inflation. The table below shows the levels in 2020 for all income tax brackets, the personal exemption, and the standard deduction.
Current statutory tax rates have evolved from the Tax Reform Act of 1986 (TRA86; P.L. 99-514) ) and several tax laws that have been enacted since then. Of particular importance among the latter are the Omnibus Budget Reconciliation Act of 1990 (OBRA90; P.L. 101-508), the Omnibus Budget Reconciliation Act of 1993 (OBRA93; P.L. 103-66), ), the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16), the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUC; P.L. 111-312), ), the American Taxpayer Relief Act of 2012 (ATRA, P.L. 112-240), ), and the tax rate changes contained in the 2017 tax revision (P.L. 115-97). TRA86 altered the income tax rate structure. EGTRRA established what are referred to as the Bush-era tax cuts for individuals. TRUC extended those cuts for another two years, through 2012. ATRA permanently extended the Bush-era tax rates for taxpayers with taxable incomes below $400,000 for single filers and $450,000 for joint filers but reinstated the 39.6% top rate established by OBRA93 for taxpayers with taxable incomes equal to or above those amounts. And P.L. 115-97 lowered individual tax rates for all income groups except those subject to the 10% and 35% brackets under previous law.
Ordinary income is taxed at).
As shown in the table, there are seven statutory marginal individual income tax rates, from 2018 to 2026: 2025: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. (Starting in 2026, these rates will revert to their levels in 2017.) Income from long-term capital gains and dividends is taxed at 0% for single filers with capital gains below $39,375 (below $78,750 for joint filers), 15% for single filers with capital gains between $39,375 and $434,550 (between $78,750 and $488,850 for joint filers), and 20% for single filers with capital gains above $434,550 (above $488,850 for joint filers). Since 2013, a 3.8% tax has been imposed on the lesser of net investment income received by individuals, estates, or trusts, or the amount of their modified adjusted gross incomes above $250,000 for joint filers and $125,000 for single filers. In addition, the individual alternative minimum tax (AMT), which functions like a separate income tax in that its rate structure is narrower and tax base broader than those of the regular income tax, applies to income above exemption amounts in 2019 of $111,700 for joint filers and $71,700 for single filers; the AMT taxes income at two rates: 26% and 28%.
Tax rates and the income brackets to which they apply are not the only elements of the individual income tax that determine the tax liabilities of taxpayers. Personal exemptions, exclusions, deductions, credits, and certain other elements have an effect as well. Some of these elements are indexed for inflation. Congress added annual indexation to the individual income tax in 1981, using the Consumer Price Index for All Urban Consumers. Such a mechanism helps prevent tax increases and unintended shifts in the distribution of the tax burden that are driven by inflation alone. The indexed elements are tax rate brackets, personal exemptions and their phaseout threshold, standard deductions, the itemized deduction limitation threshold, and the exemption amounts for the AMT. Starting in 2018, these items are indexed for inflation with the Chained Consumer Price Index for All Urban Consumers.
This report summarizes the tax brackets and other key elements of the individual income tax that help determine taxpayers' marginal and average effective tax rates going back to 1988. It will be updated to reflect indexation adjustments and changes in the taxation of individual income.
In analyzing the effects of U.S. individual income tax rates, it is important to be clear about which rates are being discussed. Among tax analysts, the three most widely used measures are statutory rates (STRs), marginal effective rates (MERs), and average effective rates (AERs). Each has its own applications. Those interested in how individual income taxes affect the economic behavior of households should have a clear understanding of the ways in which the three rates differ and the implications of these differences for the economic analysis of income taxes.
STRs are the rates prescribed by law that apply to specified ranges of taxable income. For any individual, the applicable rate depends on her/his taxable income. Since the federal income tax is progressive in nature, taxpayers with relatively low taxable incomes face lower STRs than do taxpayers with relatively high taxable incomes.
Effective rates, by contrast, whether marginal or average, measure how STRs are affected by tax provisions that modify someone's taxable income or tax liability. A taxpayer's MER shows the percentage of an additional dollar of income that is taxed, while her/his AER indicates how much of her/his total income is taxed. In general, someone's average tax rate is lower than her/his marginal tax rate.
Still, for many individuals, the interaction between special provisions in the tax code and their specific financial circumstances leads to differences between their effective and statutory rates. Among the provisions that can drive a wedge between the two rates are the earned income tax credit (EITC), the alternative minimum tax (AMT), and personal exemptions and deductions. Personal circumstances that can cause MERs to diverge from STRs include the sources of income, itemized deductions, the number of children (if any) eligible for the child tax credit and the EITC, and filing status.1
Most economists believe that taxpayers change their economic behavior in response to MERs, not to statutory rates. Drawing on a standard model of consumer behavior, they argue that a person's MER influences important decisions concerning whether and how much to work, how much to spend, and how much to save. For example, someone's MER may help determine whether he takes on an overtime shift, bargains for wages and benefits, takes a second job, or even enters the labor force. The idea that MERs help shape an individual's economic behavior can be extended to an entire tax system, including federal payroll and excise taxes and state and local taxes.2 A broader analysis along these lines, however, goes beyond the scope of this report.
The current income tax is largely a product of the Tax Reform Act of 1986 (TRA86; P.L. 99-514). Among other things, the act reduced the individual tax rate structure to two statutory rates: 15% and 28%. TRA86 also imposed a 5% surcharge on the taxable income of certain upper-income households, effectively adding a third marginal tax rate of 33%.
Since the enactment of TRA86, several other major changes in the federal individual income tax rate structure have been made. The Omnibus Budget Reconciliation Act of 1990 (OBRA90; P.L. 101-508) eliminated the 5% surcharge and replaced it with a statutory rate of 31%. In addition, OBRA90 imposed a limit on the amount of itemized deductions upper-income households could claim and accelerated the phaseout of personal exemptions for upper-income households. These provisions had the effect of raising effective tax rates above statutory tax rates for affected taxpayers.
The Omnibus Budget Reconciliation Act of 1993 (OBRA93; P.L. 103-66) added two new statutory rates at the upper end of the income scale: 36% and 39.6%. It also delayed the indexation of the two new tax brackets for one year and permanently extended the limitation on itemized deductions and the accelerated phaseout of the personal exemption from OBRA90.
Eight years later, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16) added a new 10% statutory rate. It also included a phased-in reduction in the top four statutory rates to 25%, 28%, 33%, and 35%. Several other provisions of the act modified the tax brackets and limitations on personal exemptions and deductions for higher-income taxpayers.
The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA; P.L. 108-27), the Working Families Tax Relief Act of 2004 (WFTRA; P.L. 108-311), and the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA; P.L. 109-222) collectively accelerated and extended the tax rate reductions enacted under EGTRRA through 2010.3
Under a last-minute agreement between President Obama and congressional leaders from both parties, Congress extended the Bush-era individual income tax cuts through 2012 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUC; P.L. 111-312).
Facing the unwanted prospect of an across-the-board increase in all STRs, the 112th Congress permanently extended (through the American Taxpayer Relief Act of 2012 [ATRA; P.L. 112-240]) each of the Bush-era STRs, with one exception: the top rate increased from 35% to 39.6%.
Six years passed before Congress made another significant change in individual income tax rates. Through P.L. 115-97, often referred to as the Tax Cuts and Jobs Act, Congress temporarily reduced five of the seven individual income tax rates under prior law. For tax years beginning after December 31, 2017, and before January 1, 2026, individual income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%; they are set to return to the levels that applied in 2017, for tax years beginning on or after January 1, 2026.
Each act is described in greater detail below.
Among its many changes, TRA86 simplified the individual income tax rate structure for tax years after 1987 by replacing the 14 nonzero statutory rates that applied to the 1985 and 1986 tax years with two such rates: 15% and 28%. Table 3 shows the key elements of the 1988 tax rate structure. These rates applied to capital income as well as to labor income.
Although TRA86 established only two statutory individual marginal income tax rates, it included a 5% surcharge on the taxable income of certain upper-income households. This surcharge effectively created a third statutory tax rate of 33% (a 28% statutory tax rate plus a 5% surcharge).
Because the surcharge phased in over a certain range of income and then phased out as income increased, statutory tax rates rose to 33% but then fell back to 28%, producing what was known as an income tax rate "bubble." The intent of the surcharge was two-fold: (1) to prevent TRA86 from changing the distribution of the income tax burden among income groups, relative to the distribution under pre-1986 tax law, and (2) to meet specific revenue targets.
More specifically, the surcharge was designed to eliminate the tax benefits of both the 15% tax bracket and the personal exemption for upper-income households. For joint returns in 1988, the phaseout of the 15% tax rate started when taxable income exceeded $71,900 and ended when it reached $149,250. For single returns, the 15% tax bracket phased out when taxable income was between $47,050 and $97,620. For heads of households, the phaseout occurred when taxable income fell in the range of $67,200 to $134,930.
The phaseout of the personal exemption started immediately after the phaseout of the 15% tax bracket and occurred sequentially for each exemption. This meant that the taxable income range over which the 5% surcharge offset personal exemptions 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 $149,250 and $171,090 ($149,250 plus two times $10,920). On a joint return with four personal exemptions, the 5% surcharge would apply to taxable income between $149,250 and $192,930 ($149,250 plus four times $10,920).
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 1988. The difference between taxing the first $29,750 of taxable income at 28% instead of 15% was $3,867.50 (obtained as $29,750 multiplied by 13%, the difference between 28% and 15%). Five percent of the difference between the upper and lower phaseout limits also equaled $3,867.50 ($149,250 less $71,900 multiplied by 5%). Hence, assessing the 5% surcharge on taxable income between $78,400 and $162,770 was equivalent to taxing the first $32,450 of taxable income at 28% rather than 15%.
OBRA90 created a three-tiered statutory marginal income tax rate structure. The rates were 15%, 28%, and 31% and applied to tax years beginning in 1991 and thereafter (see Table 5). OBRA90 eliminated the tax rate bubble created by TRA86, and replaced it 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 for capital gains income. The act limited the tax on capital gains income to a maximum of 28%, starting in 1991. Under TRA86, capital gains was treated as ordinary income and taxed at regular rates that peaked at 33%.
OBRA90's limitation on itemized deductions was based on a taxpayer's adjusted gross income (AGI). For tax years starting in 1991 to 1995, allowable deductions were reduced by 3% of the amount by which a taxpayer's AGI exceeded $100,000 (or $50,000 in the case of married couples filing separate returns). For example, if a taxpayer's AGI in 1991 was $110,000, then his itemized deductions would have been reduced by $300 ($110,000 less $100,000 multiplied by .03). This provision effectively raised the marginal income tax rate of affected taxpayers by approximately one percentage point. A dollar of income in excess of $100,000 was taxed as if it were $1.03, since in addition to the tax on an extra dollar of income, the taxpayer lost a tax deduction by giving up $0.03 of itemized deductions.
This limitation was scheduled to expire after tax year 1995 under OBRA90, but was later extended. 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.
OBRA90 phased out the tax benefits of the personal exemption for higher-income households. Each personal exemption was phased out by a factor of 2% for each $2,500 (or fraction thereof) by which a taxpayer's AGI exceeded a given threshold amount. In 1991, the threshold amounts were $150,000 for a joint return, $100,000 for a single return, and $125,000 for a head-of- household return. Starting in 1992, these amounts were indexed for inflation. The phaseout provision was scheduled to expire at the end of 1995.
A simple example illustrated how the personal exemption phaseout increased the tax burden on affected taxpayers. In 1991, a joint household whose AGI was $183,000 would have lost 28% of their total personal exemptions. The AGI amount in excess of the threshold in this instance would have been $33,000, or $183,000 AGI minus the $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 have totaled $4,300, they would have been allowed to deduct $3,096 ($4,300 total personal exemptions less the $1,204 disallowance, which is 28% of the total).
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% tax bracket was the result of adding a 10% surtax to the 36% rate for taxpayers with taxable incomes over $250,000 in 1993.
Although OBRA93 was enacted in August 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. Taxpayers 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 remained at the same level for both tax years 1993 and 1994.
Finally, OBRA93 made permanent both the itemized deduction limitation and the phaseout of the tax benefits from personal exemptions.
EGTRRA made several major changes to the marginal tax rate structure. Many of the act's provisions were set to phase in over a period of time, but subsequent legislation, described in the next section, overrode the schedule originally set by EGTRRA. All of the EGTRRA provisions, as amended, were set to expire at the end of 2010.
First, the 2001 act created a new 10% bracket. It 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. For tax year 2001, the act created a "rate reduction tax credit," mimicking the effects of the 10% tax rate bracket for most taxpayers.4
EGTRRA gradually phased in and expanded the bracket over several years, but in 2003-2007, these provisions of EGTRRA were accelerated by subsequent legislation. In 2008, EGTRRA became effective again, setting the 10% marginal tax rate bracket at $7,000 for single filers and $14,000 for joint filers. Starting with tax year 2009, these bracket amounts were indexed for inflation.
Second, the 2001 act gradually reduced the top four marginal income tax rates. Under prior income tax law, the top four marginal tax rates were 28%, 31%, 36%, and 39.6%. When fully phased in, the 2001 act reduced the top four marginal income tax rates to 25%, 28%, 33%, and 35%. Once again, under EGTRRA the reductions were scheduled to take place in 2001 through 2006, but subsequent legislation accelerated the EGTRRA phase-in schedule.
Third, EGTRRA also repealed the limitation on itemized deductions and personal exemptions for high-income taxpayers. The repeal was phased in between 2006 and 2009. The limitation was completely repealed for 2010, but it was scheduled to reappear again in 2011, once the EGTRRA's tax cuts expire.
Fourth, some of the act's measures designed to reduce the marriage penalty affected the rate bracket structure. The act increased the income range of the 15% tax bracket for married couples filing joint returns to twice the income range of the 15% tax bracket for single returns. Under EGTRRA, this provision was scheduled to phase in from 2005 to 2008, but subsequent legislation accelerated the phase-in. Under EGTRRA, the upper dollar limit of the 15% tax bracket for joint returns was set at 180% of the upper dollar limit of the 15% tax bracket for single returns in 2005, 187% of that limit in 2006, 193% of that limit in 2007, and 200% of that limit in 2008 and subsequent years.
Finally, the 2001 act increased the standard deduction for joint returns to twice the size of the standard deduction for single returns. The change was scheduled to be phased in over a five-year period, 2005 to 2009, but it was accelerated by the subsequent bills as well. This had the effect of raising the lower income threshold of the lowest tax bracket for married taxpayers.
JGTRRA accelerated several changes to the individual income tax rate structure that were first enacted under EGTRRA. It moved forward to 2003 the tax rate reductions, the expansion of the 10% tax bracket, and the widening of the 15% tax bracket for joint returns to make it double the width of the 15% tax bracket for single returns. Under EGTRRA, some of these changes would not have been fully phased in until 2009.
JGTRRA also lowered the tax rates for long-term capital gains and dividends. It reduced the top rate to 15%, and allowed a rate of 0% for certain low-income taxpayers.
WFTRA extended several tax provisions of JGTRRA that were scheduled to expire at the end of 2004. It extended the expansion of the 10% income tax bracket through 2007, at which point EGTRRA's relevant provisions would be fully phased in, maintaining a constant amount of tax relief.
WFTRA also extended marriage penalty relief under EGTRRA from 2005 to 2008. The standard deduction for a married couple filing jointly was set to be equal to double the standard deduction for an unmarried single filer over that period. In addition, the act made the size of the 15% tax bracket for joint filers double that of the tax bracket for single filers from 2005 to 2007. As a result, in both cases, the marriage penalty relief extended from 2005 to 2010, before ending under the EGTRRA sunset provision.
The reductions in tax rates for long-term capital gains and dividends under JGTRRA were set to expire at the end of 2008; TIPRA extended them through the end of 2010.
A last-minute agreement in 2010 between President Obama and congressional leaders of both parties cleared the way for an extension of all the Bush-era individual tax cuts through the end of 2012. TRUC served as the legislative vehicle for the extension.
Facing a reversion of each statutory individual income tax rate to its level before the enactment of EGTRRA starting January 1, 2013, Congress and President Obama agreed on legislation (ATRA) to extend permanently each of the Bush-era rates and restore the top marginal tax rate to its pre-EGTRRA level of 39.6%.
The act also permanently extended the repeal of the phaseout of the personal exemption included in EGTRRA, but it restricted the repeal of the phaseout to taxpayers with AGIs of $250,000 or less for single filers and $300,000 or less for married couples filing jointly. Taxpayers with AGIs above these inflation-adjusted amounts were subject to the phaseout. The same rule applied to the repeal under EGTRRA of the Pease limitation on the amount of itemized deductions an upper-income taxpayer could take.
Individual marginal income tax rates did not change after ATRA until the enactment of P.L. 115-97 in December 2017. The act made significant changes to a number of individual income tax provisions, including individual tax rates and the standard deduction. For tax years beginning in 2018 and ending before 2027, the individual income tax rate structure consists of seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. (The rates are scheduled to revert to their levels in 2017 starting in 2026.) For individuals receiving income from passthrough businesses (i.e., partnerships, S corporations, and sole proprietorships), the current rates can be adjusted downward as a result of a new deduction under Section 199A; the deduction is equal to up to 20% of a noncorporate business owner's qualified income from a qualified trade or business.5
The 2017 tax revision also made the following changes in these key elements of the individual income tax for the 2018 to 2025 tax years:
During periods of relatively high inflation, a progressive income tax based on tax brackets set in nominal dollars can lead to automatic tax increases, and these increases can lead to unintended changes in the overall distribution of the tax burden by income class. This is because nominal incomes rise faster than real incomes, all other things being equal. As a result, tax burdens for taxpayers become larger than what lawmakers had intended when they established existing statutory tax rates. In the absence of indexation of the elements of the tax code determining the tax burdens of individuals, an increasing share of taxpayers will face growing tax liabilities because their nominal incomes are rising, irrespective of what happens to their real incomes.
The effects of inflation on income tax liabilities can be substantial, even in periods of low inflation, such as the last two decades. According to the Bureau of Labor Statistics, $1,000 in November 1988 had the buying power of $2,095.08 in November 2018.7 Year-to-year changes can be negligible, but over a decade or so, those changes can add up to make a substantial difference through the power of compounding.
A simplified hypothetical example illustrates the impact that a lack of indexation can have over time for the tax burdens (as measured by the average income tax rate) of individual taxpayers. The results are summarized in Table 1. Assume that the individual income tax structure from 1988 applied without indexation (or any other changes) in 2017. Also assume that a household with a husband, wife, and two children had an adjusted gross income (AGI) of $35,000 in 1988, was eligible for no tax credits, and filed a joint tax return. If the family took the standard deduction, then its taxable income would have been $22,200 ($35,000 minus the standard deduction of $5,000 and four personal exemptions at $1,950 apiece), and its tax liability would have been $3,330. As a result, the household's average tax rate was 9.5% ($3,330 divided by $35,000 income) in 1988.
Next consider what would happen to the household's tax burden in 2017 if the family's income had kept up with inflation but the 1988 tax structure had remained in place, with no indexation for inflation. The family's AGI would have been $71,766: $35,000 x 2.05 (the rise in the general price level as measured by the Consumer Price Index for all Urban Consumers (CPI-U) from 1988 to 2017). Its taxable income would have been $58,966; its tax liability would have totaled $12,643; and its average tax rate would have reached 17.6%.
So in the absence of the indexation of the key income tax elements when the family's AGI rose in step with the rate of consumer inflation, keeping the buying power of its income constant, the family's income tax burden increased by 85% from 1988 to 2017. This difference exemplifies what is known as "bracket creep," an effect that is accelerated during periods of high inflation.
Table 1. Illustration of the Effect of Bracket Creep on a Household's Tax Burden
(dollars, unless indicated otherwise)
|
1988 |
2017 (no indexing for inflation) |
2017 (with indexing for inflation) |
||||||
Adjusted Gross Income |
|
|
| ||||||
Standard Deduction |
|
|
| ||||||
Four Personal Exemptions |
|
|
| ||||||
Taxable Income |
|
|
| ||||||
Tax Liability |
|
|
| ||||||
Average Tax Rate |
|
|
|
Source: Congressional Research Service.
a. The following assumptions underlie the figures in the table: (1) the family consists of a husband, wife, and two children who are considered dependents for tax purposes; (2) the household files a joint return; and (3) it is eligible for no tax credits.
Under an indexed individual income tax, however, the household would have experienced no change in their tax burden. With an inflation adjustment equal to the rise in the CPI-U, the value of the standard deduction for a joint return would have increased from $5,000 in 1988 to $10,252 in 2017, and the personal exemption for each family member would have increased from $1,950 to $3,998. Under these circumstances, the family's 2017 taxable income would have been $45,522 ($71,766 in income less the inflation-adjusted standard deduction and four personal exemptions). Tax brackets would have adjusted as well. Based on this taxable income and the adjusted brackets, their income tax liability would have been $6,828, yielding an average tax rate of 9.5%, the same as in 1988. While the nominal household's amount of income and tax owed rose, the value of both in 1988 dollars stayed approximately the same.
Congress added indexation to the individual are scheduled to revert to their 2017 levels. Each rate applies to a different range of income, and the combination is known as a tax bracket. A taxpayer’s tax liability is the sum total of the tax that results from the portion of her or his taxable income that falls in each applicable tax bracket. This means that someone’s average tax rate (i.e., total tax owed divided by total income) is less than her or his marginal tax rate (i.e., the tax on an additional dollar of income), with the exception of taxpayers subject to the lowest marginal tax of 10%. For example, assume an income tax with no deductions, exemptions, exclusions, and credits. If Mary has a taxable income of $20,000 and half of that amount is taxed at 10% and half at 15%, then her tax liability is equal to ($10,000 x 0.10) + ($10,000 x 0.15), or $2,500.
Mary’s average tax rate is 12.5%, while her marginal rate is 15%.
More than 50 tax elements are indexed for inflation. These include the tax brackets, personal exemption, and standard deduction addressed in this report. Indexation helps prevent bracket creep, which happens when someone’s tax liability increases because of rises in his or her nominal income while real income remains unchanged. Until 2018, indexation of these items was based on the Consumer Price Index for All Urban Consumers (CPI-U). Congress permanently changed the inflation adjustment mechanism to the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), starting in 2018. Some experts believe that the latter index provides a more accurate measure of inflation among consumer goods and servic es than the CPI-U.
Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, Personal
Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2020
Personal Exemption and Phaseout:
$0
(suspended through the end of 2025)
Standard Deduction:
Joint
$24,800
Single
$12,400
Head of Household
$18,650
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,300
Single/Head of Household
$1,650
Congressional Research Service
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on Itemized Deductions:
Suspended through the end of 2025
Statutory Marginal Income Tax Rates, 2020
Joint Returns
If taxable income is:
Then, tax is:
$0 to $19,750
10% of the amount over $0
over $19,750 to $80,250
$1,975 + 12% of the amount over $19,750
over $80,250 To $171,050
$9,235 + 22% of the amount over $80,250
over $171,050 to $326,600
$29,211 + 24% of the amount over $171,050
over $326,600 to $414,700
$66,543 + 32% of the amount over $326,600
over $414,700 to $622,050
$94,735 + 35% of the amount over $414,700
over $622,050
$167,307.50 + 37% of the amount over $622,050
Single Returns
If taxable income is:
Then, tax is:
$0 to $9,875
10% of the amount over $0
over $9,875 to $40,125
$987.50 + 12% of the amount over $9,875
over $40,125 to $85,525
$4,617.50 + 22% of the amount over $40,125
over $85,525 to $163,300
$14,605.50 + 24% of the amount over $85,525
over $163,300 to $207,350
$33,271.50 + 32% of the amount over $163,300
over $207,350 to $518,400
$47,367.50 + 35% of the amount over $207,350
over $518,400
$156,235 + 37% of the amount over $518,400
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $14,100
10% of the amount over $0
over $14,100 to $53,700
$1,410 + 12% of the amount over $14,100
over $53,700 to $85,500
$6,612 + 22% of the amount over $53,700
over $85,500 to $163,300
$13,15
8 + 24% of the amount over $85,500
over $163,300 to $207,350
$31,830 + 32% of the amount over $163,300
over $207,350 to $518,400
$45,926 + 35% of the amount over $207,350
over $518,400
$154,793.50 + 37% of the amount over $518,400
Source: IRS Revenue Procedure 2019-44.
Congressional Research Service
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Contents
Introduction ................................................................................................................... 1 Overview of Key Individual Income Tax Elements ............................................................... 2
Tax Rates and Brackets............................................................................................... 2 Personal Exemption ................................................................................................... 2 Itemized Deductions and the Standard Deduction ........................................................... 2
Inflation, Bracket Creep, and Indexation ............................................................................. 3 Tax Tables from 1988 to 2021 ........................................................................................... 5
Tables Table 1. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2021 ................ 5
Table 2. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2020 ................ 6
Table 3. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2019 ................ 7
Table 4. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2018 ................ 8
Table 5. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2017 ................ 9
Table 6. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2016 .............. 11
Table 7. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2015 .............. 12
Table 8. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2014 .............. 13
Table 9. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions,
Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2013 .............. 15
Table 10. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2012 ............................................................................................................... 16
Table 11. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2011................................................................................................................ 17
Table 12. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2010 ............................................................................................................... 18
Table 13. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2009 ............................................................................................................... 19
Table 14. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2008 ............................................................................................................... 21
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Table 15. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2007 ............................................................................................................... 22
Table 16. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2006 ............................................................................................................... 23
Table 17. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2005 ............................................................................................................... 24
Table 18. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of the Personal Exemption, and Statutory Marginal Tax Rates, 2004 ..................... 26
Table 19. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout, and Statutory Marginal Tax Rates, 2003............. 27
Table 20. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 2002 .......................... 29
Table 21. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 2001 .......................... 30
Table 22. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 2000 .......................... 31
Table 23. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1999 .......................... 32
Table 24. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1998 .......................... 34
Table 25. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1997 .......................... 35
Table 26. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1996 .......................... 36
Table 27. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions.
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1995 .......................... 37
Table 28. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1994 .......................... 39
Table 29. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax Rates,
1993......................................................................................................................... 41
Table 30. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1992 .......................... 42
Table 31. Personal Exemption, Standard Deduction, Limitation on Itemized Deductions,
Phaseout of Personal Exemption, and Statutory Marginal Tax Rates, 1991 .......................... 43
Table 32. Personal Exemption, Standard Deduction, and Statutory Marginal Tax Rates,
1990......................................................................................................................... 44
Table 33. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax Rates,
1989......................................................................................................................... 45
Table 34. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax Rates,
1988......................................................................................................................... 46
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Appendixes Appendix. Brief Summary of Major Legislation Affecting Individual Statutory Rates
Since 1986 ................................................................................................................ 47
Contacts Author Information ....................................................................................................... 51
Congressional Research Service
link to page 53 Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Introduction U.S. citizens and residents are subject to a federal income tax on their worldwide income.1 Their taxable income is equal to gross income from numerous sources (including pass-through business
profits, long-term capital gains, and dividends) less certain exclusions, exemptions, and deductions. A taxpayer’s adjusted gross income (AGI) is determined by subtracting certain “above-the-line” deductions from gross income.2 Taxable income is determined by reducing a taxpayer’s AGI by the standard deduction or the sum of that person’s itemized deductions, whichever is greater. Taxpayers who own a pass-through business (i.e., partnership, Subchapter S corporation, limited liability company, or sole proprietorship) may also be able to lower their
taxable income by claiming the deduction for pass-through business income under Internal Revenue Code (IRC) Section 199A. Then the applicable marginal tax rate is applied to determine an individual’s income tax liability. A taxpayer may face additional tax liability if she or he is subject to the alternative minimum tax.3 The tax owed may be reduced by any credits (e.g.,
earned income tax credit and child tax credit) a taxpayer is al owed to claim.
This report focuses on several elements of this process that affect most individual taxpayers. Specifical y, it tracks changes between 1988 and 2021 in statutory marginal individual income tax rates and the income ranges to which the rates apply (known as tax brackets); the personal
exemption and associated limitations for high-income taxpayers; the standard deduction; and limits on itemized deductions for high-income taxpayers. The report is intended to serve as a reference source for federal taxation of individual income going back to the Tax Reform Act of
1986 (P.L. 99-514).
The report begins with a brief overview of the role these elements play in determining tax liability under the regular income tax. (It does not cover situations involving more complicated tax calculations, such as income subject to the alternative minimum tax or income from long-term capital gains.) The report then considers the rationale for indexing elements of the individual
income tax for inflation, and of the mechanism for doing so under current law. The final section tracks changes in the personal exemption and limitations on it, the standard deduction and limitations on itemized deductions, and statutory tax rates and brackets from 1988 to 2021,
through a series of tables.
An Appendix identifies federal tax laws going back to P.L. 99-514 that introduced the changes in the tax elements tracked here. The current federal income tax is a product of the Tax Reform Act
of 1986, changes in tax law since then notwithstanding.
1 For more information on the taxation of noncitizen resident, see CRS Report R43840, Federal Income Taxes and Noncitizens: Frequently Asked Questions, by Erika K. Lunder and Margot L. Crandall-Hollick.
2 T hese deductions include trade or business expenses, losses from the sale or exchange of property, contributions to a qualified retirement plan by a self-employed individual, contributions to qualified individual retirement accounts, and certain education costs. In 2020 and 2021, taxpayers who claim the standard deduction (or nonitemizers) may be able to claim a deduction for charitable cash contributions. For more details, see CRS Insight IN11420, Tem porary Enhancem ents to Charitable Contributions Deductions in the CARES Act, by Jane G. Gravelle, and CRS Report R46649, The COVID-Related Tax Relief Act of 2020 and Other COVID-Related Tax Provisions in P.L. 116-260, by Molly F. Sherlock et al. 3 For more information on the alternative minimum tax for individuals, see CRS In Focus IF10705, Tax Reform: The Alternative Minim um Tax, by Donald J. Marples.
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Overview of Key Individual Income Tax Elements
Tax Rates and Brackets At the core of the federal individual income tax are the tax brackets and their corresponding rates. A bracket denotes the range of taxable income to which a particular statutory tax rate applies. Al taxable income within a bracket is taxed at that rate. A person’s tax liability before credits is the
sum total of the tax liability for brackets over which that person’s taxable income is distributed. For example, assume a single filer has a taxable income in 2020 of $20,000. Her first $10,000 is taxed at 10% and the second $10,000 is taxed at 15%, giving her a tax liability of $2,500: ($10,000 x 0.1) + ($10,000 x 0.15) = ($1,000 + $1,500) = $2,500. Consequently, the average tax rate (12.5%) is lower than the top marginal rate (15%) that applies to her income.4 Tax brackets
are adjusted for inflation each year, and individual income tax rates are progressive, which means
that the rate increases with income.
Personal Exemption Before 2018, each taxpayer was al owed to reduce gross income by a fixed amount (i.e., an exemption) for herself or himself, a spouse, and al qualified dependents. The amount of the exemption was the same for every individual and indexed for inflation. In 2017, the amount was $4,050 per person. Under current law, the personal exemption is $0 from 2018 through 2025, but
it wil be reinstated starting in 2026, assuming no legislative changes. For al but three years (2010-2012) from 1991 to 2017, the exemption phased out for taxpayers with income above a
threshold amount.
Itemized Deductions and the Standard Deduction In computing taxable income, individuals are al owed to reduce their gross income by either the standard deduction or the sum of itemized deductions, whichever amount is larger. The standard deduction varies by filing status and is indexed for inflation. In 2020, the basic deduction is
$12,400 for single filers and married persons filing separately, $18,650 for a head of household, and $24,800 for a married couple filing jointly and surviving spouses. Taxpayers who are 65 or older and/or blind are eligible for an additional standard deduction. In 2020, that amount is
$1,300 for each spouse among joint filers and $1,650 for a single filer or head of household.
In lieu of the standard deduction, a taxpayer may itemize certain deductions. In 2020, these deductions include up to $10,000 for a combination of state and local property taxes and state and local sales or income taxes paid;5 home mortgage interest paid on mortgage debt of $750,000 or less;6 eligible charitable contributions; certain investment interest; medical expenses above 7.5%
of a person’s adjusted gross income (AGI); and casualty and theft losses related to federal y declared disasters in excess of both 10% of AGI and $100 per loss.7 Before 2018, taxpayers were also al owed a deduction for miscel aneous itemized deductions (e.g., certain job-related expenses not paid by an employer) above 2% of AGI, but the 2017 tax revision (P.L. 115-97) suspended it
4 For more information on the difference between marginal and average income tax rates, see CRS Report R44787, Statutory, Average, and Effective Marginal Tax Rates in the Federal Individual Incom e Tax: Backg round and Analysis, by Molly F. Sherlock.
5 See CRS Report R46246, The SALT Cap: Overview and Analysis, by Grant A. Driessen and Joseph S. Hughes. 6 For more information, see CRS In Focus IF11540, The Mortgage Interest Deduction, by Mark P. Keightley. 7 See CRS Report R45864, Tax Policy and Disaster Recovery, by Molly F. Sherlock and Jennifer T eefy.
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from 2018 through 2025. Like the personal exemption, total itemized deductions began to phase out from 1991 to 2017 (except for 2010-2012) for higher-income taxpayers when their income
exceeded a threshold amount. This amount varied by filing status.
Inflation, Bracket Creep, and Indexation Tax brackets, the personal exemption (unavailable from 2018 to 2025), and the standard deduction have been indexed for inflation since 1981. Indexing prevents individuals from moving
into a higher tax bracket because of inflation, not because of increases in their real income, a process known as bracket creep. The mechanism for indexation was the Consumer Price Index for Urban Consumers (CPI-U) until 2018. Since then, a different consumer price index is being used to make inflation adjustments: the Chained CPI-U (C-CPI-U). Some believe that the C-CPI-U provides a more accurate measure of the rate of price change for consumer products and
services than the CPI-U.8
During periods of rising or relatively high inflation, a progressive income tax based only on tax brackets measured in current (or nominal) dollars may lead to unintended tax increases. This can
happen when nominal incomes rise faster than real incomes, pushing taxpayers into higher tax brackets through bracket creep. The process can lead to larger individual income tax burdens than what lawmakers may have intended when they established statutory rates. Without indexation of
key income tax elements, many taxpayers might be affected by bracket creep.
The effects of inflation on income tax liabilities can be considerable, even in periods of low inflation. According to the Bureau of Labor Statistics, $1,000 in July 1988 had the buying power of $2,186.51 in July 2020, using the CPI-U to adjust for inflation.9 Although year-to-year changes in general price levels have been relatively smal in recent years, they eventual y can make a
substantial difference through the process of compounding.
Congress added indexation to the individual income tax as a part of the package of statutory tax rate reductions included in the Economic Recovery Tax Act of 1981. The relatively high U.S.
inflation rate at the time had an effect onU.S. rate of inflation was exceptionally high at the time, and this condition influenced congressional deliberations on the benefits of tax
indexation.10 As the Joint Committee on Taxation noted in its explanation of the act:
The Congress believed that "automatic"“automatic” tax increases resulting from the effects of inflation were unfair to taxpayers, since their tax burden as a percentage of income could increase during intervals between tax reduction legislation, with an adverse effect on incentives to work and invest. In addition, the Federal Government was provided with an automatic increase in its aggregate revenue, which in turn created pressure for further s pending.11
For tax years before 2018, the inflation adjustmentincrease in its aggregate revenue, which in turn created pressure for further spending.8
Since 1981, the list of indexed elements has gradually expanded and now includes more than three dozen tax items. TRA86 extended indexation to some newly created tax provisions, including the standard deductions for the elderly and the blind and the EITC. EGTRRA indexed the phaseout amounts for the EITC, starting in 2008.
Table 2 lists the major indexed tax items and notes the first year of the adjustment.9
Item |
Base Period Is the 12-Month Period Ending |
Adjustment First Occurs in Calendar Year |
|
Standard deduction |
31-Aug-87 |
1989 |
|
Unearned income of minor child (base amount) |
31-Aug-87 |
1989 |
|
Exemptions |
31-Aug-88 |
1990 |
|
Educational savings bonds |
31-Aug-89 |
1991 |
|
Exemption phaseout |
31-Aug-12 |
1992 |
|
Itemized deduction limitation (3% of AGI) |
31-Aug-12 |
1992 |
|
Tax rate schedules: |
|||
10% bracket |
31-Aug-02 |
2004 |
|
15%, 25%, 28% brackets |
31-Aug-92 |
1994 |
|
33% and 35%, brackets 39.6% bracket |
31-Aug-93 31-Aug.12 |
1995 2014 |
|
Alternative minimum tax: |
|||
Exemption amounts for single and joint filers |
31-Aug-11 |
2014 |
|
Earned income credit: |
|||
Base amounts and maximum earned income amount |
31-Aug-95 |
1997 |
|
Married phaseout base |
31-Aug-08 |
2010 |
|
Standard deduction for employed dependents |
31-Aug-97 |
1999 |
|
Medical savings accounts |
31-Aug-97 |
1999 |
|
Annual gift tax exclusion |
31-Aug-97 |
1999 |
|
Qualified transportation fringe benefits: |
|||
Categories 1 and 2 |
31-Aug-01 |
2003 |
|
Category 3 |
31-Aug-98 |
2000 |
|
HOPE, lifetime learning, and child tax credits |
31-Aug-00 |
2002 |
|
Education loan interest |
31-Aug-01 |
2003 |
|
Adoption expenses/credit |
|||
Credit/exclusion amount |
31-Aug-09 |
2011 |
|
Phaseout base |
31-Aug-01 |
2003 |
|
Traditional and Roth IRAs |
|||
Income phaseout |
31-Aug-05 |
2007 |
|
Contribution Limit |
31-Aug-07 |
2009 |
|
Section 179 expense amounts |
31-Aug-14 |
2016 |
Source: James C. Young, "Inflation Adjustments Affecting Private Individual Taxpayers in 2017," Tax Notes, Oct. 10, 2016.
Indexing may compound the complexity of the individual income tax, but, given its benefits to taxpayers over time, this effect is arguably a minor matter. The year-to-year changes in dollar amounts are usually small, so taxpayers seldom, if ever, face unexpected changes that might materially affect them. On the revenue side, of course, indexing results in lower government receipts.
But some key elements of the tax remain unadjusted for inflation. One such element is the child tax credit. Under current law, the amount of the credit itself and the phaseout thresholds for higher-income taxpayers are not adjusted for inflation. But the earned income threshold used in calculating the credit's refundable amount has been adjusted for inflation since 2001. Consequently, under current law, inflation erodes the value of the credit and reduces the number of eligible taxpayers over time. Another element not indexed for inflation is the threshold amounts for determining who pays the 3.8% tax on net investment income that was added in 2013.
Most elements are indexed using the technical calculation described below. In some instances, the calculation methodology differs somewhat. Examples include the EITC or transportation benefits. The variations are insignificant, as long as they do not lead to systematic deviations from the actual rate of inflation.
The adjustment for tax years before 2019 was based on the percentage by which the average CPI-Uaverage Consumer Price Index for All Urban Consumers (CPI-U) in the 12 months ending on August 31 of the preceding year exceeded the average
CPI-U during a 12-month base period. Not all al indexed tax elements used the same base period.
8 CRS Report R43347, Budgetary and Distributional Effects of Adopting the Chained CPI, by Donald J. Marples. 9 Bureau of Labor Statistics, CPI Inflation Calculator, http://www.bls.gov/data/inflation_calculator.htm/. 10 T he CPI-U rose 8.92% in 1981, following a rise of 12.51% in the previous year. By contrast, the average U.S. inflation rate, as measured by the CPI-U, from 1980 to 2019 was 2.96%.
11 U.S. Congress, Joint Committee on T axation, General Explanation of the Economic Recovery Tax Act of 1981, JCS-71-81, December 31, 1981, as redistributed by CCH Internet Tax Research NetWork.
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For tax years beginning in 2018 and thereafter, a different price index is beingindexed tax elements used the same base period, as shown in Table 2.
With the exception of the EITC, inflation adjustments were rounded down to the nearest multiple of $50. Although rounding down affected the accuracy of any given year's inflation adjustment, the effect was not cumulative since each year's adjustment reflected the total inflation that occurred between the adjustment year and the base period.
For example, the adjustment factor for the personal exemption in 2017 was calculated as follows. By law, the base period for this factor was September 1987 through August 1988, when the average CPI-U was 116.6. The average CPI-U for September 2015 through August 2016, on which the 2017 value is based, was 238.6. Thus, the inflation adjustment factor in 2017 was 2.05 (238.6/116.6). This factor was then applied to $2,000, the value of the exemption in 1989, resulting in a personal exemption of $4,080 for the 2017 tax year. Rounding this number down to the nearest multiple of $50 produced the final value of the exemption in 2017: $4,050.
For tax years beginning after December 31, 2018, a different consumer price index will be used to adjust the values of income tax elements subject to indexation. Under a provision of for inflation. Under P.L. 115-97, the Chained Consumer Price
Index for All Al Urban Consumers (C-CPI-U) replacespermanently replaced the CPI-U for this purpose.
Some analysts have argued that the CPI-U overstated rises in the cost of living because it did not account for changes consumers made in their buying patterns when the prices of certain items in the standard market basket went up or down. Not accounting for this substitution effect tended to
overstate the impact of inflation on consumers over time.
The C-CPI-U may be better at capturing changes in consumer spending patterns in response to price increases or decreases.12 The index the CPI-U for this purpose.
Both indices were designed by the Bureau of Labor Statistics (BLS) to measure price changes faced by the average urban consumer. Each of them tracks the prices of about 80,000 goods and services each month in cities throughout the United States. The BLS bases the indices on a fixed basket of goods and services obtained from a survey of the spending patterns of 7,000 American families. The survey determines which goods and services go into the basket and how much weight should be assigned to each item in calculating the overall change in prices. The market basket for the CPI-U is revised every two years.
Many analysts have argued that the CPI-U overstates rises in the cost of living because it does not fully account for the changes consumers make in their buying patterns when the price of one item in the market basket goes up or the price of another goes down. When this tendency to substitute lower-priced items for other items whose prices have increased is ignored, the impact on consumers of inflation is overstated.
The chained CPI-U is better at capturing changes in consumer spending patterns tied to price increases or decreases. This is because it compares details about what a consumer buys in the period before a price change with details about what he/ or she buys in the period after the change. In essence, with the C-CPI-U, the BLS calculates one measure of inflation for the first-period
basket and a second measure of inflation for the second-period basket and then takes the average. The C-CPI-U does this every month, creating an index that links consumer demandThe basket after the price change may contain different amounts of some items, as consumers respond to increases or decreases in the prices of other items in the same categories. For instance, the second-period basket may include more chicken than the first-period basket did when the price of beef increases while the price of chicken remains unchanged. This substitution softens the impact of the price rise for beef on the overall measure of inflation. The chained CPI-U does this every month, creating an index that links these changes from month to month. As a result, the index reflects and thus tracks shifts in consumer buying patterns between months and betweenover time and among basket
items.
Because the C-CPI-U accounts for the tendency of consumers to substitute cheaper items for items whose prices have risen, it produces lower estimates of the rate of increase in the cost of living over time than the CPI-U does. From 2000 to 2019, the annual average C-CPI-U rose by
41.0%, while the CPI-U’s annual average increased by 48.5%.
Using the C-CPI-U to adjust tax elements for inflation raises the concern that bracket creep may occur more often than it would if the CPI-U were used for inflation adjustment. Because the C-CPI-U increases more slowly than the CPI-U, tax bracket thresholds are likely to rise by smal er
amounts from one year to the next. In this case, more taxpayers would be at risk of moving into higher tax brackets than they would under the CPI-U. Accelerated bracket creep would result in an increase in federal tax revenue over time, al other things being equal basket items. It also leads to lower estimates of the rate of increase in the cost of living over time, since the chained CPI-U is built around the tendency of consumers in general to purchase lower-priced items that can be substituted for items whose prices have risen. From 2000 to 2012, the annual average for the chained CPI-U rose by 29.4%. In the same period, the CPI-U's annual average increased by 33.3%.
Many analysts have noted that using the chained CPI-U to adjust the amount of individual income tax elements for inflation has one significant drawback: the index is revised several times, while the CPI-U is never revised. A final reading for the chained CPI-U is released between 10 and 16 months after its initial release. Consequently, starting in 2018, tax elements that are adjusted for inflation are indexed to a preliminary estimate that could be significantly revised.
Switching to the chained CPI-U to adjust key tax elements for inflation is likely to result in more bracket creep than would occur if the elements were still adjusted for inflation using the CPI-U. Since the chained CPI-U increases more slowly than the CPI-U, tax bracket thresholds are likely to rise by smaller amounts from one year to the next. More individual taxpayers will be pushed into higher tax brackets than they would be if the CPI-U were still used for inflation adjustment. One significant result is an increase in federal tax revenue over time. The Joint Committee on Taxation has estimated that the revenue gain from switching to the chained C-CPI-U will wil total $134 billion
bil ion from FY2018 to FY2027.13
Although indexing in general may complicate the calculation of the individual income tax, this effect is arguably a minor concern in light of indexing’s benefits to taxpayers over time. The year-to-year changes in dollar amounts have been relatively smal in recent years, perhaps making the
effects of indexing less apparent. If the U.S. inflation rate were to greatly increase, however, indexation would reduce the likelihood that many taxpayers would face large, unexpected
changes in their tax liability even if their real incomes were to remain unchanged.
Since 1981, when Congress first authorized indexing of various individual income tax elements for inflation, the list of indexed elements has expanded and now contains more than 50 tax items. Not al of the items pertain to individuals, and not al elements of the individual income tax are
indexed for inflation.
12 CRS Report RL32293, The Chained Consumer Price Index: What Is It and Would It Be Appropriate for Cost-of-Living Adjustm ents?, by Julie M. Whittaker. 13 U.S. Congress, Joint Committee on T axation, General Explanation of P.L. 115-97, JCS-1-18 (Washington: GPO, 2018), p. 434.
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Tax Tables from 1988 to 2021 The following tables present the personal exemption and phaseout threshold amounts, standard deductions, limitations on itemizedfrom FY2018 to FY2027.10
Since the onset of the Great Recession in late 2007, the annual U.S. inflation rate has fluctuated between -0.4% and 3.2%, as measured by the CPI-U. Negative inflation, or deflation, occurred in 2009 relative to 2008. Deflation denotes a decrease in the general price level. As a result, the inflation adjustments in 2010 were very small or nonexistent. Several other federal programs experienced similar situations, even though they do not use the same indexing methodology. For example, there was no cost-of-living adjustment for Social Security benefits in 2010.11
If the United States were to experience a period of sustained deflation, the income tax elements could decline in constant dollars. By law, however, the elements cannot fall below their base-year values. Since their current values are much higher than their base values, which were established years ago in some cases, and the near-term outlook for inflation is projecting rates below 3%, this limitation is unlikely to come into play anytime soon for most indexed elements.
The following tables present the personal exemption amounts, standard deductions, and statutory marginal tax rates schedules for each tax year from 1988 through 2019.
Table 3 deductions, and statutory marginal tax rates schedules for
each tax year from 2021 back to 1988.
Table 1. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2021
Personal Exemption and Phaseout:
$0
(suspended through the end of 2025)
Standard and Statutory Tax Rates, 1988
Personal Exemption |
$1,950 |
Standard Deduction: |
|
Joint |
$5,000 |
Single |
$3,000 |
Head of Household |
$4,400 |
| |
Joint |
$600 |
Single/Head of Household |
$750 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
the Blind:
Joint (each spouse)
$1,350
Single/Head of Household
$1,700
Limitation on Itemized Deductions:
Suspended through the end of 2025
Statutory Marginal Income Tax Rates, 2021
Joint Returns
If taxable income is:
|
Then, tax is: |
$0 to $29,750 |
15% of the amount over $0 |
over $29,750 to $71,900 |
$4,462.50 + 28% of the amount over $29,750 |
|
$16,264.50 + 33% of the amount over $71,900 |
over $171,090 |
$47,905.20 + 28% of the amount over $171,090 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
Then, tax is: |
$0 to $17,850 |
15% of the amount over $0 |
over $17,850 to $43,150 |
$2,677.50 + 28% of the amount over $17,850 |
over $43,150 to $100,480a |
$9,761.50 + 33% of the amount over $43,150 |
over $100,480 |
$28,134.40 + 28% of the amount over $100,480 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
Then, tax is:
$0 to $19,900
10% of the amount over $0
over $19,900 to $81,050
$1,990 + 12% of the amount over $19,900
over $81,050 to $172,750
$9,328 + 22% of the amount over $81,050
over $172,750 to $329,850
$29,502 + 24% of the amount over $172,750
over $329,850 to $418,850
$67,206 + 32% of the amount over $329,850
over $418,850 to $628,300
$95,686 + 35% of the amount over $418,850
over $628,300
$168,993.50 + 37% of the amount over $628,300
Single Returns
If taxable income is:
|
Then, tax is: |
$0 to $23,900 |
15% of the amount over $0 |
over $23,900 to $61,650 |
$3,585 + 28% of the amount over $23,900 |
over $61,650 to $145,630a |
$14,155 + 33% of the amount over $61,650 |
over $145,630 |
$40,776.40 + 28% of the amount over $145,630 |
a. Implicit tax bracket, generated by the "tax bubble," as described in text. The bracket's upper bound depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
Personal Exemption |
$2,000 |
Standard Deduction: |
|
Joint |
$5,200 |
Single |
$3,100 |
Head of Household |
$4,550 |
Additional Standard Deduction for the Elderly or the Blind |
|
Joint |
$600 |
Single/Head of Household |
$750 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
Then, tax is:
$0 to $9,950
10% of the amount over $0
over $9,950 to $40,525
$995 + 12% of the amount over $9,950
over $40,525 to $86,375
$4,664 + 22% of the amount over $40,525
over $86,375 to $164,900
$14,751+ 24% of the amount over $86,375
over $164,900 to $209,400
$33,603 + 32% of the amount over $164,900
over $209,400 to $523,600
$47,843 + 35% of the amount over $209,400
over $523,600
$157,804.25 + 37% of the amount over $523,600
Congressional Research Service
5
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Head-of-Household Returns
If taxable income is:
|
Then, tax is: |
$0 to $30,950 |
15% of the amount over $0 |
over $30,950 to $ 74,850 |
$4,642.50 + 28% of the amount over $30,950 |
|
$16,934.50 + 33% of the amount over $74,850 |
over $177,720 |
$50,881.60 + 28% of the amount over $177,720 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
Then, tax is: |
$0 to $18,550 |
15% of the amount over $0 |
over $18,550 to $ 44,900 |
$2,782.50 + 28% of the amount over $18,550 |
|
$10,160.50 + 33% of the amount over $44,900 |
over $104,300 |
$29,772.40 + 28% of the amount over $104,300 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
Then, tax is:
$0 to $14,200
10% of the amount over $0
over $14,200 to $54,200
$1,420 + 12% of the amount over $14,200
over $54,200 to $86,350
$6,220 + 22% of the amount over $54,200
over $86,350 to $164,900
$13,293 + 24% of the amount over $86,350
over $164,900 to $209,400
$32,415 + 32% of the amount over $164,900
over $209,400 to $523,600
$46,385 + 35% of the amount over $209,400
over $523,600
$156,355 + 37% of the amount over $523,600
Source: IRS Revenue Procedure 2020-45.
Table 2. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2020
Personal Exemption and Phaseout:
$0
(suspended through the end of 2025)
Standard Deduction:
Joint
$24,800
Single
$12,400
Head of Household
$18,650
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,300
Single/Head of Household
$1,650
Limitation on Itemized Deductions:
Suspended through the end of 2025
Statutory Marginal Income Tax Rates, 2020
Joint Returns
If taxable income is:
|
Then, tax is: |
$0 to $24,850 |
15% of the amount over $0 |
over $24,850 to $ 64,200 |
$ 3,727.50 + 28% of the amount over $ 24,850 |
over $64,200 to $151,210a |
$14,745.50 + 33% of the amount over $ 64,200 |
over $151,210 |
$43,458.80 + 28% of the amount over $151,210 |
a. Implicit tax bracket, generated by the "tax bubble," as described in text. The bracket's upper bound depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
Personal Exemption |
$2,050 |
Standard Deduction: |
|
Joint |
$5,450 |
Single |
$3,250 |
Head of Household |
$4,750 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$650 |
Single/Head of Household |
$800 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
Then, tax is:
$0 to $19,750
10% of the amount over $0
over $19,750 to $80,250
$1,975 + 12% of the amount over $19,750
over $80,250 to $171,050
$9,235 + 22% of the amount over $80,250
over $171,050 to $326,600
$29,211 + 24% of the amount over $171,050
over $326,600 to $414,700
$66,543 + 32% of the amount over $326,600
over $414,700 to $622,050
$94,735 + 35% of the amount over $414,700
over $622,050
$167,307.50 + 37% of the amount over $622,050
Single Returns
If taxable income is:
|
Then, tax is: |
$0 to $32,450 |
15% of the amount over $0 |
over $32,450 to $78,400 |
$3,867.50 + 28% of the amount over $32,450 |
|
$17,733.50 + 33% of the amount over $78,400 |
over $185,730 |
$53,152.40 + 28% of the amount over $185,730 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
Then, tax is: |
$0 to $19,450 |
15% of the amount over $0 |
over $19,450 to $47,050 |
$2,917.50 + 28% of the amount over $19,450 |
|
$10,645.50 + 33% of the amount over $47,050 |
over $109,100 |
$31,122.00 + 28% of the amount over $109,100 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
Then, tax is:
$0 to $9,875
10% of the amount over $0
over $9,875 to $40,125
$987.50 + 12% of the amount over $9,875
over $40,125 to $85,525
$4,617.50 + 22% of the amount over $40,125
Congressional Research Service
6
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $85,525 to $163,300
$14,605.50 + 24% of the amount over $85,525
over $163,300 to $207,350
$33,271.50 + 32% of the amount over $163,300
over $207,350 to $518,400
$47,367.50 + 35% of the amount over $207,350
over $518,400
$156,235 + 37% of the amount over $518,400
Head-of-Household Returns
If taxable income is:
|
Then, tax is: |
$0 to $26,050 |
15% of the amount over $0 |
over $ 26,050 to $67,200 |
$3,907.50 + 28% of the amount over $26,050 |
|
$15,429.50 + 33% of the amount over $67,200 |
over $157,890 |
$45,357.20 + 28% of the amount over $157,890 |
a. Implicit tax bracket, generated by the "tax bubble," as described in text. The bracket's upper bound depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
Personal Exemption |
$2,150 |
Standard Deduction: |
|
Joint |
$5,700 |
Single |
$3,400 |
Head of Household |
$5,000 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$650 |
Single/Head of Household |
$850 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
Then, tax is:
$0 to $14,100
10% of the amount over $0
over $14,100 to $53,700
$1,410 + 12% of the amount over $14,100
over $53,700 to $85,500
$6,612 + 22% of the amount over $53,700
over $85,500 to $163,300
$13,158 + 24% of the amount over $85,500
over $163,300 to $207,350
$31,830 + 32% of the amount over $163,300
over $207,350 to $518,400
$45,926 + 35% of the amount over $207,350
over $518,400
$154,793.50 + 37% of the amount over $518,400
Source: IRS Revenue Procedure 2019-44.
Table 3. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2019
Personal Exemption and Phaseout:
$0
(suspended through the end of 2025)
Standard Deduction:
Joint
$24,400
Single
$12,200
Head of Household
$18,350
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,300
Single/Head of Household
$1,650
Limitation on Itemized Deductions:
Suspended through the end of 2025
Statutory Marginal Income Tax Rates, 2019
Joint Returns
If taxable income is:
|
Then, tax is: |
$0 to $34,000 |
15% of the amount over $0 |
over $34,000 to $82,150 |
$5,100 + 28% of the amount over $34,000 |
over $82,150 |
$18,582 + 31% of the amount over $82,150 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
Then, tax is: |
$0 to $20,350 |
15% of the amount over $0 |
over $20,350 to $49,300 |
$3,052.50 + 28% of the amount over $20,350 |
over $49,300 |
$11,158.50 + 31% of the amount over $ 49,300 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
Then, tax is:
$0 to $19,400
10% of the amount over $0
over $19,400 to $78,950
$1,940 + 12% of the amount over $19,400
over $78,950 To $168,400
$9,086 + 22% of the amount over $78,950
over $168,400 to $321,450
$28,675 + 24% of the amount over $168,400
over $321,450 to $408,200
$65,497 + 32% of the amount over $321,450
over $408,200 to $612,350
$93,257 + 35% of the amount over $408,200
over $612,350
$164,709.50 + 37% of the amount over $612,350
Congressional Research Service
7
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Single Returns
If taxable income is:
|
Then, tax is: |
$0 to $27,300 |
15% of the amount over $0 |
over $27,300 - $70,450 |
$4,095 + 28% of the amount over $27,300 |
over $70,450 |
$16,177 + 31% of the amount over $70,450 |
Personal Exemption |
$2,300 |
Standard Deduction: |
|
Joint |
$6,000 |
Single |
$3,600 |
Head of Household |
$5,250 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$700 |
Single/Head of Household |
$900 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
Then, tax is: |
$0 to $35,800 |
15% of the amount over $0 |
over $35,800 to $86,500 |
$5,370 + 28% of the amount over $35,800 |
over $86,500 |
$19,566 + 31% of the amount over $86,500 |
Statutory Marginal Income Tax Rates, Single Returns |
|
Then, tax is:
$0 to $9,700
10% of the amount over $0
over $9,700 to $39,475
$970 + 12% of the amount over $9,700
over $39,475 to $84,200
$4543 + 22% of the amount over $39,475
over $84,200 to $160,725
$14,382.50 + 24% of the amount over $84,200
over $160,725 to $204,100
$32,748.50 + 32% of the amount over $160,725
over $204,100 to $510,300
$46,628.50 + 35% of the amount over $204,100
over $510,300
$153,798.50 + 37% of the amount over $510,300
Head-of-Household Returns
If taxable income is:
|
Then, tax is: |
$0 - $21,450 |
|
over $21,450 to $51,900 |
$3,218 + 28% of the amount over $21,450 |
over $51,900 |
$11,744 + 31% of the amount over $51,900 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
Then, tax is: |
$0 - $28,750 |
15% of the amount over $0 |
over $28,750 to $ 74,150 |
$4,313 + 28% of the amount over $28,750 |
over $ 4,150 |
$17,235 + 31% of the amount over $74,150 |
Personal Exemption |
$2,350 |
Standard Deduction: |
|
Joint |
$6,200 |
Single |
$3,700 |
Head of Household |
$5,450 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$700 |
Single/Head of Household |
$900 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $19,050
10% of the amount over $0
over $19,050 to $77,400
$1,905 + 12% of the amount over $19,050
over $77,400 to $165,000
$8,907 + 22% of the amount over $77,400
Congressional Research Service
8
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $165,000 to $315,000
$28,675 + 24% of the amount over $165,000
over $315,000 to $400,000
$64,179 + 32% of the amount over $315,000
over $400,000 to $600,000
$91,379 + 35% of the amount over $400,000
over $600,000
$161,379 + 37% of the amount over $600,000
Single Returns
|
$0 to $36,900 |
15% of the amount over $0 |
over $36,900 to $89,150 |
$5,535 + 28% of the amount over $36,900 |
over $89,150 to $140,000 |
$20,165 + 31% of the amount over $89,150 |
over $140,000 to $250,000 |
$35,929 + 36% of the amount over $140,000 |
over $250,000 |
$75,529 + 39.6% of the amount over $250,000 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $9,525
10% of the amount over $0
over $9,525 to $38,700
$952.50 + 12% of the amount over $9,525
over $38,700 to $82,500
$4,453.50 + 22% of the amount over $38,700
over $82,500 to $157,500
$14,089.50 + 24% of the amount over $82,500
over $157,500 to $200,000
$32,089.50 + 32% of the amount over $157,500
over $200,000 to $500,000
$45,689.50 + 35% of the amount over $200,000
over $500,000
$150,689.50 + 37% of the amount over $500,000
Head-of-Household Returns
|
$0 to $22,100 |
15% of the amount over $0 |
over $22,100 to $53,500 |
$3,315 + 28% of the amount over $22,100 |
over $53,500 to $115,000 |
$12,107 + 31% of the amount over $53,500 |
over $115,000 to $250,000 |
$31,172 + 36% of the amount over $115,000 |
over $250,000 |
$79,772 + 39.6% of the amount over $250,000 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $13,600
10 |
$0 to $29,600 |
15% of the amount over $0 |
over $29,600 to $76,400 |
|
over$76,400 to $127,500 |
$17,544 + 31% of the amount over $76,400 |
over $127,500 to $250,000 |
$33,385 + 36% of the amount over $127,500 |
over $250,000 |
$77,485 + 39.6% of the amount over $250,000 |
Personal Exemption |
$2,450 |
Standard Deduction: |
|
Joint |
$6,350 |
Single |
$3,800 |
Head of Household |
$5,600 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$750 |
Single/Head of Household |
$950 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $18,650
10% of the amount over $0
over $18,650 to $75,900
$1,865 + 15% of the amount over $18,650
over $75,900 to $153,100
$10,452.50 + 25% of the amount over $75,900
over $153,100 to $233,350
$28,675 + 28% of the amount over $153,100
over $233,350 to $416,700
$52,222.50 + 33% of the amount over $233,350
over $416,700 to $470,700
$112,728 + 35% of the amount over $416,700
over $470,700
$131,628 + 39.6% of the amount over $470,700
Single Returns
|
$0 to $38,000 |
15% of the amount over $0 |
over $38,000 to $91,850 |
$5,700 + 28% of the amount over $38,000 |
over $ 91,850 to $140,000 |
$20,778 + 31% of the amount over $91,850 |
over $140,000 to $250,000 |
$35,705 + 36% of the amount over $140,000 |
over $250,000 |
$75,305 + 39.6% of the amount over $250,000 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $9,325
10% of the amount over $0
over $9,325 to $37,950
$932.50 + 15% of the amount over $9,325
over $37,950 to $91,900
$5,226.25 + 25% of the amount over $37,950
over $91,900 to $191,650
$18,713.75 + 28% of the amount over $91,900
over $191,650 to $416,700
$46,643.75 + 33% of the amount over $191,650
over $416,700 to $418,400
$120,910.25 + 35% of the amount over $416,700
over $418,400
$121,505.25 + 39.6% of the amount over $418,400
Head-of-Household Returns
|
$0 to $22,750 |
15% of the amount over $0 |
over $22,750 to $55,100 |
$3,413 + 28% of the amount over $22,750 |
over $55,100 to $115,000 |
$12,471 + 31% of the amount over $55,100 |
over $115,000 to $250,000 |
$31,040 + 36% of the amount over $115,000 |
over $250,000 |
$79,640 + 39.6% of the amount over $250,000 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $13,350
10% of the amount over $0
over $13,350 to $50,800
$1,335 + 15% of the amount over $13,350
over $50,800 to $131,200
$6,952.50 + 25% of the amount over $50,800
over $131,200 to $212,500
$27,052.50 + 28% of the amount over $131,200
over $212,500 to $416,700
$49,816.50 + 33% of the amount over $212,500
over $416,700 to $444,550
$117,202.50 + 35% of the amount over $416,700
over $444,550
$126,950 + 39.6% of the amount over $444,550
Source: IRS Revenue Procedure 2016-55.
Congressional Research Service
10
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Table 6. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2016
Personal Exemption:
$4,050
Personal exemption began to phase out at a rate of 2% for every $2,500 a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$311,300
Head of household
2852,350
Single
$259,400
Standard Deduction:
Joint
$12,600
Single
$6,300
Head of Household
$9,300
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,250
Single/Head of Household
$1,550
Limitation on Itemized Deductions: For taxpayers whose adjusted gross income (AGI) exceeded the amounts shown below, the itemized deductions they could claim were equal to the lesser of 80% of the amount of al owable itemized deductions, or 3% of the excess of a taxpayer’s AGI above those amounts. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Joint
$311,300
Head of Household
$285,350
Single
$259,400
Statutory Marginal Income Tax Rates, 2016
Joint Returns
|
$0 to $30,500 |
15% of the amount over $0 |
over $30,500 to $78,700 |
$4,575 + 28% of the amount over $30,500 |
over $78,700 to $127,500 |
$18,071 + 31% of the amount over $78,750 |
over $127,500 to $250,000 |
$33,199 + 36% of the amount over $127,500 |
over $250,000 |
$77,299 + 39.6% of the amount over $250,000 |
Personal Exemption |
$2,500 |
Standard Deduction: |
|
Joint |
$6,550 |
Single |
$3,900 |
Head of Household |
$5,750 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$750 |
Single/Head of Household |
$950 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $18,550
10% of the amount over $0
over $18,550 to $75,300
$1,855 + 15% of the amount over $18,550
over $75,300 to $151,900
$10,162.50 + 25% of the amount over $75,300
over $151,900 to $231,450
$28,925 + 28% of the amount over $151,900
over $231,450 to $413,350
$50,765 + 33% of the amount over $231,450
over $413,350 to $466,950
$109,587.50 + 35% of the amount over $413,350
over $466,950
$127,962.50 + 39.6% of the amount over $466,950
Single Returns
|
$0 to $39,000 |
15% of the amount over $0 |
over $39,000 to $94,250 |
$5,850 + 28% of the amount over $39,000 |
over $94,250 to $143,600 |
$21,320 + 31% of the amount over $94,250 |
over $143,600 to $256,500 |
$36,619 + 36% of the amount over $143,600 |
over $256,500 |
$77,263 + 39.6% of the amount over $256,500 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $9,275
10% of the amount over $0
over $9,275 to $37,650
$927.50 + 15% of the amount over $9,275
over $37,650 to $91,150
$5,081.25 + 25% of the amount over $37,650
over $91,150 to $190,150
$18,193.75 + 28% of the amount over $91,150
Congressional Research Service
11
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $190,150 to $413,350
$45,353.75 + 33% of the amount over $190,150
over $413,350 to $415,050
$117,541.25 + 35% of the amount over $413,350
over $415,050
$118,118.75 + 39.6% of the amount over$415,050
Head-of-Household Returns
|
$0 to $23,350 |
15% of the amount over $0 |
over $23,350 to $56,550 |
$3,503 + 28% of the amount over $23,350 |
over $56,550 to $117,950 |
$12,799 + 31% of the amount over $56,550 |
over $117,950 to $256,500 |
$31,833 + 36% of the amount over $117,950 |
over $256,500 |
$81,711 + 39.6% of the amount over $256,500 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $13,250
10 |
$0 to $31,250 |
15% of the amount over $0 |
over $31,250 to $80,750 |
|
over $80,750 to $130,800 |
$18,548 + 31% of the amount over $80,750 |
over $130,800 to $256,500 |
$34,063 + 36% of the amount over $130,800 |
over $256,500 |
$79,315 + 39.6% of the amount over $256,500 |
Personal Exemption |
$2,550 |
Standard Deduction: |
|
Joint |
$6,700 |
Single |
$4,000 |
Head of Household |
$5,900 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$800 |
Single/Head of Household |
$1,000 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $18,450
10% of the amount over $0
over $18,450 to $74,900
$1,845 + 15% of the amount over $18,4500
over $74,900 to $151,200
$10,162.50 + 25% of the amount over $74,900
over $151,200 to $230,450
$28,925 + 28% of the amount over $151,200
over $230,450 to $411,500
$50,765 + 33% of the amount over $230,450
over $411,500 to $464,850
$109,587.50 + 35% of the amount over $411,500
over $464,850
$127,962.50 + 39.6% of the amount over $464,850
Single Returns
|
$0 to $40,100 |
15% of the amount over $0 |
over $40,100 to $96,900 |
$6,015 + 28% of the amount over $40,100 |
over $96,900 to $147,700 |
$21,919 + 31% of the amount over $96,900 |
over $147,700 to $263,750 |
$37,667 + 36% of the amount over $147,700 |
over $263,750 |
$79,445 + 39.6% of the amount over $263,750 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $9,225
10% of the amount over $0
over $9,225 to $37,450
$922.50 + 15% of the amount over $9,225
over $37,450 to $90,750
$5,081.25 + 25% of the amount over $37,450
over $90,750 to $189,300
$18,193.75 + 28% of the amount over $90,750
over $189,300 to $411,500
$45,353.75 + 33% of the amount over $189,300
over $411,500 to $413,200
$117,541.25 + 35% of the amount over $411,500
over $413,200
$118,118.75 + 39.6% of the amount over $413,200
Head-of-Household Returns
|
$0 to $24,000 |
15% of the amount over $0 |
over $24,000 to $58,150 |
$3,600 + 28% of the amount over $24,000 |
over $58,150 to $121,300 |
$13,162 + 31% of the amount over $58,150 |
over $121,300 to $263,750 |
$32,739 + 36% of the amount over $121,300 |
over $263,750 |
$84,021 + 39.6% of the amount over $263,750 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $13,150
10 |
$0 to $32,150 |
15% of the amount over $0 |
over $32,150 to $83,050 |
|
over $83,050 to $134,500 |
$19,075 + 31% of the amount over $83,050 |
over $134,500 to $263,750 |
$35,025 + 36% of the amount over $134,500 |
over $263,750 |
$81,555 + 39.6% of the amount over $263,750 |
Personal Exemption |
$2,650 |
Standard Deduction: |
|
Joint |
$6,900 |
Single |
$4,150 |
Head of Household |
$6,050 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$800 |
Single/Head of Household |
$1,000 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $18,150
10% of the amount over $0
over $18,150 to $73,800
$1,815 + 15% of the amount over $18,150
over $73,800 to $148,850
$10,162.50 + 25% of the amount over $73,800
over $148,850 to $226,850
$28,925 + 28% of the amount over $148,850
over $226,850 to $405,100
$50,765 + 33% of the amount over $226,850
over $405,100 to $457,600
$109,587.50 + 35% of the amount over $405,100
over $457,600
$127,962.50 + 39.6% of the amount over $457,600
Single Returns
|
$0 to $41,200 |
15% of the amount over $0 |
over $41,200 to $99,600 |
$6,180 + 28% of the amount over $41,200 |
over $99,600 to $151,750 |
$22,532 + 31% of the amount over $99,600 |
over $151,750 to $271,050 |
$38,699 + 36% of the amount over $151,750 |
over $271,050 |
$81,647 + 39.6% of the amount over $271,050 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $9,075
10% of the amount over $0
over $9,075 to $36,900
$907.50 + 15% of the amount over $9,075
over $36,900 to $89,350
$5,081.25 + 25% of the amount over $36,900
over $89,350 to $186,350
$18,193.75 + 28% of the amount over $89,350
over $186,350 to $405,100
$45,353.75 + 33% of the amount over $186,350
over $405,100 to $406,750
$117,541.25 + 35% of the amount over $405,100
over $406,750
$118,118.75 + 39.6% of the amount over $406,750
Head-of-Household Returns
|
$0 to $ 24,650 |
15% of the amount over $0 |
over $24,650 to $ 59,750 |
$3,698 + 28% of the amount over $24,650 |
over $59,750 to $ 124,650 |
$13,526 + 31% of the amount over $59,750 |
over $124,650 to $ 271,050 |
$33,645 + 36% of the amount over $124,650 |
over $271,050 |
$86,349 + 39.6% of the amount over $271,050 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $12,950
10% of the amount over $0
over $12,950 to $49,400
$1,295 + 15% of the amount over $12,950
over $49,400 to $127,550
$6,762.50 + 25% of the amount over $49,400
Congressional Research Service
14
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $127,550 to $206,600
$26,300 + 28% of the amount over $127,550
over $206,600 to $405,100
$48,434 + 33% of the amount over $206,600
over $405,100 to $432,200
$113,939 + 35% of the amount over $405,100
over $432,200
$123,424 + 39.6% of the amount over $432,200
Source: IRS Revenue Procedure 2013-35.
Table 9. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2013
Personal Exemption
$3,900
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$422,501
Head of household
$397,501
Single
$372,501
Standard Deduction:
Joint
$12,200
Single
$6,100
Head of Household
$8,950
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,200
Single/Head of Household
$1,500
Limitation on Itemized Deductions: For taxpayers whose adjusted gross income (AGI) exceeded the amounts shown below, the itemized deductions they could claim were equal to the lesser of 80% of the amount of al owable itemized deductions, or 3% of the excess of a taxpayer’s AGI above those amounts. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Joint
$300,000
Head of Household
$275,000
Single
$250,000
Statutory Marginal Income Tax Rates, 2013
Joint Returns
|
$0 to $33,050 |
15% of the amount over $0 |
over $33,050 to $83,350 |
$4,958 + 28% of the amount over $33,050 |
over $83,350 to $138,200 |
$19,602 + 31% of the amount over $85,350 |
over $138,200 to $271,050 |
$35,986 + 36% of the amount over $138,200 |
over $271,050 |
$83,812 + 39.6% of the amount over $271,050 |
Personal Exemption |
$2,700 |
Standard Deduction: |
|
Joint |
$7,100 |
Single |
$4,250 |
Head of Household |
$6,250 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$850 |
Single/Head of Household |
$1,050 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $17,850
10% of the amount over $0
over $17,850 to $72,500
$1,785 + 15% of the amount over $17,850
over $72,500 to $146,400
$9,982.50 + 25% of the amount over $72,500
over $146,400 to $223,050
$28,457.50 + 28% of the amount over $146,400
over $223,050 to $398,350
$49,919.50 + 33% of the amount over $223,050
over $398,350 to $450,000
$107,768.50 + 35% of the amount over $398,350
over $450,000
$125,846 + 39.6% of the amount over $450,000
Congressional Research Service
15
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Single Returns
|
$0 to $42,350 |
15% of the amount over $0 |
over $42,350 to $102,300 |
$6,353 + 28% of the amount over $42,350 |
over $102,300 to $155,950 |
$23,139 + 31% of the amount over $102,300 |
over $155,950 to $278,450 |
$39,770 + 36% of the amount over $155,950 |
over $278,450 |
$83,870 + 39.6% of the amount over $278,450 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,925
10% of the amount over $0
over $8,925 to $36,250
$892.50 + 15% of the amount over $8,925
over $36,250 to $87,850
$4,991.25 + 25% of the amount over $36,250
over $87,850 to $183,250
$17,891.25 + 28% of the amount over $87,850
over $183,250 to $398,350
$44,603.25 + 33% of the amount over $183,250
over $398,350 to $400,000
$115,586.25 + 35% of the amount over $398,350
over $400,000
$116,163.75 + 39.6% of the amount over $400,000
Head-of-Household Returns
|
$0 to $25,350 |
15% of the amount over $0 |
over $25,350 to $61,400 |
$3,803 + 28% of the amount over $25,350 |
over $61,400 to $128,100 |
$13,897 + 31% of the amount over $61,400 |
over $128,100 to $278,450 |
$34,574 + 36% of the amount over $128,100 |
over $278,450 |
$88,700 + 39.6% of the amount over $278,450 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $12,750
10% of the amount over $0
over $12,750 to $48,600
$1,275 + 15% of the amount over $12,750
over $48,600 to $125,450
$6,652.50 + 25% of the amount over $48,600
over $125,450 to $203,150
$25,865 + 28% of the amount over $125,450
over $203,150 to $398,350
$47,621 + 33% of the amount over $203,150
over $398,350 to $425,000
$112,037 + 35% of the amount over $398,350
over $425,000
$121,364.50 + 39.6% of the amount over $425,000
Source: IRS Revenue Procedure 2012-41.
Table 10. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2012
Personal Exemption
$3,800
Phaseout of personal exemption:
Ended on Dec. 31, 2009
Standard Deduction:
Joint
$11,900
Single
$5,950
Head of Household
$8,700
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,150
Single/Head of Household
$1,450
Limitation on itemized deductions:
Ended on Dec. 31, 2009
Congressional Research Service
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Statutory Marginal Income Tax Rates, 2012
Joint Returns
|
$0 to $33,950 |
15% of the amount over $0 |
over $33,950 to $87,700 |
$5,093 + 28% of the amount over $33,950 |
over $87,700 to $142,000 |
$20,143 + 31% of the amount over $87,700 |
over $142,000 to $278,450 |
$36,976+ 36% of the amount over $142,000 |
over $278,450 |
$86,098 + 39.6% of the amount over $278,450 |
Personal Exemption |
$2,750 |
Standard Deduction: |
|
Joint |
$7,200 |
Single |
$4,300 |
Head of Household |
$6,350 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$850 |
Single/Head of Household |
$1,050 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $17,400
10% of the amount over $0
over $17,400 to $70,700
$1,740 + 15% of the amount over $17,400
over $70,700 to $142,700
$9,500 + 25% of the amount over $70,700
over $142,700 to $217,450
$27,087.50 + 28% of the amount over $142,700
over $217,450 to $388,350
$47,513.50 + 33% of the amount over $217,450
over $388,350
$102,574 + 35% of the amount over $388,350
Single Returns
|
$0 to $43,050 |
15% of the amount over $0 |
over $43,050 to $104,050 |
$6,458 + 28% of the amount over $43,050 |
over $104,050 to $158,550 |
$23,538 + 31% of the amount over $104,050 |
over $158,550 to $283,150 |
$40,433 + 36% of the amount over $158,550 |
over $283,150 |
$85,289 + 39.6% of the amount over $283,150 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,700
10% of the amount over $0
over $8,700 to $35,350
$870 + 15% of the amount over $8,700
over $35,350 to $85,650
$4,750 + 25% of the amount over $35,350
over $85,650 to $178,650
$17,025 + 28% of the amount over $85,650
over $178,650 to $388,350
$42,449 + 33% of the amount over $178,650
over $388,350
$110,016.50 + 35% of the amount over $388,350
Head-of-Household Returns
|
$0 to $25,750 |
15% of the amount over $0 |
over $25,750 to $62,450 |
$3,863 + 28% of the amount over $25,750 |
over $62,450 to $130,250 |
$14,139 + 31% of the amount over $62,450 |
over $130,250 to $283,150 |
$35,157 + 36% of the amount over $130,250 |
over $283,150 |
$90,201 + 39.6% of the amount over $283,150 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $12,400
10% of the amount over $0
over $12,400 to $47,350
$1,240 + 15% of the amount over $12,400
over $47,350 to $122,300
$6,330 + 25% of the amount over $47,350
over $122,300 to $198,050
$24,617.50 + 28% of the amount over $122,300
over $198,050 to $388,350
$45,322.50 + 33% of the amount over $198,050
over $388,350
$106,637.50 + 35% of the amount over $388,350
Source: IRS Revenue Procedure 2011-52.
Table 11. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2011
Personal Exemption:
$3,700
Phaseout of personal exemption:
Ended on Dec. 31, 2009
Standard Deduction:
Joint
$11,600
Single
$5,800
Head of Household
$8,500
Additional Standard Deduction for the Elderly or the Blind:
Joint (each spouse)
$1,150
Single/Head of Household
$1,450
Congressional Research Service
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on itemized deductions:
Ended on Dec. 31, 2009
Statutory Marginal Income Tax Rates, 2011
Joint Returns
|
$0 to $34,550 |
15% of the amount over $0 |
over $34,550 to $89,150 |
$5,183 + 28% of the amount over $34,550 |
over $89,150 to $144,400 |
$20,471 + 31% of the amount over $89,150 |
over $144,400 to $283,150 |
$37,598 + 36% of the amount over $144,440 |
over $283,150 |
$87,548 + 39.6% of the amount over $283,150 |
Personal Exemption |
$2,800 |
Standard Deduction: |
|
Joint |
$7,350 |
Single |
$4,400 |
Head of Household |
$6,450 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$850 |
Single/Head of Household |
$1,100 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$ 0 to $17,000
10% of the amount over $0
over $17,000 to $69,000
$1,700 + 15% of the amount over $17,000
over $69,000 to $139,350
$9,.500 + 25% of the amount over $69,000
over $139,350 to $212,300
$27,087.50 + 28% of the amount over $139,350
over $212,300 to $379,150
$47,513.50 + 33% of the amount over $212,300
over $379,150
$102,574 + 35% of the amount over $379,150
Single Returns
|
$0 to $43,850 |
15% of the amount over $0 |
over $43,850 to $105,950 |
$6,578 + 28% of the amount over $43,850 |
over $105,950 to $161,450 |
$23,966 + 31% of the amount over $105,950 |
over $161,450 to $288,350 |
$41,171 + 36% of the amount over $161,450 |
over $288,350 |
$86,855 + 39.6% of the amount over $288,350 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,500
10% of the amount over $0
over $8,500 to $34,500
$850 + 15% of the amount over $8,500
over $34,500 to $83,600
$4,750 + 25% of the amount over $34,500
over $83,600 to $174,400
$17,025 + 28% of the amount over $83,600
over $174,400 to $379,150
$42,449 + 33% of the amount over $174,400
over $379,150
$110,016.50 + 35% of the amount over $379,150
Head-of-Household Returns
|
$0 to $26,250 |
15% of the amount over $0 |
over $26,250 to $63,550 |
$3,938 + 28% of the amount over $26,250 |
over $63,550 to $132,600 |
$14,382 + 31% of the amount over $63,550 |
over $132,600 to $288,350 |
$35,787 + 36% of the amount over $132,600 |
over $288,350 |
$91,857 + 39.6% of the amount over $288,350 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $12,150
10 |
$0 to $35,150 |
15% of the amount over $0 |
over $35,150 to $90,800 |
|
over $90,800 to $147,050 |
$20,855 + 31% of the amount over $90,800 |
over $147,050 to $288,350 |
$38,292 + 36% of the amount over $147,050 |
over $288,350 |
$89,160 + 39.6% of the amount over $288,350 |
Personal Exemption |
$2,900 |
Standard Deduction: |
|
Joint |
$7,600 |
Single |
$4,550 |
Head of Household |
$6,650 |
Additional Standard Deductions for the Elderly or the Blind |
|
Joint |
$900 |
Single/Head of Household |
$1,100 |
Statutory Marginal Income Tax Rates, Joint Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $16,750
10% of the amount over $0
over $16,750 to $68,000
$1,675 + 15% of the amount over $16,750
over $68,000 to $137,300
$9,362.50 + 25% of the amount over $68,000
over $137,300 to $209,250
$26,687.50 + 28% of the amount over $137,300
over $209,250 to $373,650
$46,833.50 + 33% of the amount over $209,250
over $373,650
$100,894.50 + 35% of the amount over $373,650
Single Returns
|
$0 to $45,200 |
15% of the amount over $0 |
over $45,200 to $109,250 |
$6,780 + 27.5% of the amount over $45,200 |
over $109,250 to $166,500 |
$24,394 + 30.5% of the amount over $109,250 |
over $166,500 to $297,350 |
$41,855 + 35.5% of the amount over $166,500 |
over $297,350 |
$88,307 + 39.1% of the amount over $297,350 |
Statutory Marginal Income Tax Rates, Single Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,375
10% of the amount over $0
over $8,375 to $34,000
$837.50 + 15% of the amount over $8,375
over $34,000 to $82,400
$4,681.25 + 25% of the amount over $34,000
over $82,400 to $171,850
$16,781.25 + 28% of the amount over $82,400
over $171,850 to $373,650
$41,827.25 + 33% of the amount over $171,850
over $373,650
$108,421.25 + 35% of the amount over $373,650
Head-of-Household Returns
|
$0 to $27,050 |
15% of the amount over $0 |
over $27,050 to $65,550 |
$4,058 + 27.5% of the amount over $27,050 |
over $65,550 to $136,750 |
$14,646 + 30.5% of the amount over $65,550 |
over $136,750 to $297,350 |
$36,362 + 35.5% of the amount over $136,750 |
over $297,350 |
$93,375 + 39.1% of the amount over $297,350 |
Statutory Marginal Income Tax Rates, Head-of-Household Returns |
|
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $11,950
10% of the amount over $0
over $11,950 to $45,550
$1,195 + 15% of the amount over $11,950
over $45,550 to $117,650
$6,235 + 25% of the amount over $45,550
over $117,650 to $190,550
$24,215 + 28% of the amount over $117,650
over $190,550 to $373,650
$44,672 + 33% of the amount over $190,550
over $373,650
$105,095 + 35% of the amount over $373,650
Source: IRS Revenue Procedure 2009-50.
Table 13. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2009
Personal Exemption:
$3,650
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$250,200
Single
$166,800
Head of Household
$208,500
Congressional Research Service
19
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Standard Deduction:
Joint
$11,400
Single
$5,700
Head of Household
$8,350
Additional Standard Deductions for the Elderly or the Blind:
Joint (each spouse)
$1,100
Single/Head of Household
$1,400
Limitation on itemized deductions:
$166,800
For persons whose adjusted gross income (AGI)
(for al filers except married persons filing separately)
exceeded the amount shown in the right column, the itemized deductions they could claim had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Stat Marginal Income Tax Rates, 2009
Joint Returns
|
$0 to $36,250 |
15% of the amount over $0 |
over $36,250 to $93,650 |
$5,438 + 27.5% of the amount over $36,250 |
over $93,650 to $151,650 |
$21,223 + 30.5% of the amount over $93,650 |
over $151,650 to $297,350 |
$38,913 + 35.5% of the amount over $151,650 |
over $297,350 |
$90,637 + 39.1% of the amount over $297,350 |
Personal Exemption |
$3,000 |
Standard Deduction: |
|
Joint |
$7,850 |
Single |
$4,700 |
Head of Household |
$6,900 |
Additional Standard Deductions for the Elderly or the Blind: |
|
Joint |
$900 |
Single/Head of Household |
$1,150 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $16,700
10% of the amount over $0
over $67,900 to $137,050
$1,670 + 15% of the amount over $16,700
over $137,050 to $208,850
$9,350 + 25% of the amount over $67,900
$26,637.50 + 28% of the amount over $137,050
over $208,850 to $372,950
$46,741.50 + 33% of the amount over $208,850
over $372,950
$100,894.50 + 35% of the amount over $372,950
Single Returns
| ||
$0 to |
to |
$12,000 |
10% of the amount over $0 |
over $12,000 |
to |
$46,700 |
$1,200 + 15% of the amount over $12,000 |
over $46,700 |
to |
$112,850 |
$6,405 + 27% of the amount over $46,700 |
over $112,850 |
to |
$171,950 |
$24,266 + 30% of the amount over $112,850 |
over $171,950 |
to |
$307,050 |
$41,996 + 35% of the amount over $171,950 |
over $307,050 |
$89,281 + 38.6% of the amount over $307,050 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,350
10% of the amount over $0
over $8,350 to $33,950
$835 + 15% of the amount over $8,350
over $33,950 to $82,250
$4,675 + 25% of the amount over $33,950
over $82,250 to $171,550
$16,750 + 28% of the amount over $82,250
over $171,550 to $372,950
$41,754 + 33% of the amount over $171,550
over $372,950
$108,216 + 35% of the amount over $372,950
Head-of-Household Returns
| ||
$0 |
to |
$6,000 |
10% of the amount over $0 |
over $6,000 |
to |
$27,950 |
$600 + 15% of the amount over $6,000 |
over $27,950 |
to |
$67,700 |
$3,893 + 27% of the amount over $27,950 |
over $67,700 |
to |
$141,250 |
$14,626 + 30% of the amount over $67,700 |
over $141,250 |
to |
$307,050 |
$36,691 + 35% of the amount over $141,250 |
over $307,050 |
$94,721 + 38.6% of the amount over $307,050 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $11,950
10% of the amount over $0
over $11,950 to $45,500
$1,195 + 15% of the amount over $11,950
over $45,500 to $117,450
$6,227.50 + 25% of the amount over $45,500
over $117,450 to $190,200
$24,215 + 28% of the amount over $117,450
over $190,200 to $372,950
$44,585 + 33% of the amount over $190,200
over $372,950
$104,892.50 + 35% of the amount over $372,950
Congressional Research Service
20
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Source: IRS Revenue Procedure 2008-66.
Table 14. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2008
Personal Exemption
$3,500
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$239,950
Single
$159,950
Head of Household
$199,900
Standard Deduction:
Joint
$10,900
Single
$5,450
Head of Household
$8,000
Additional Standard Deductions for the Elderly or the Blind:
Joint (each spouse)
$1,050
Single/Head of Household
$1,350
Limitation on itemized deductions:
$159,950
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2008
Joint Returns
| ||
$0 |
to |
$10,000 |
10% of the amount over $0 |
over $10,000 |
to |
$37,450 |
$1,000 + 15% of the amount over $10,000 |
over $37,450 |
to |
$96,700 |
$5,118 + 27% of the amount over $37,450 |
over $96,700 |
to |
$156,600 |
$21,116 + 30% of the amount over $96,700 |
over $156,600 |
to |
$307,050 |
$39,086 + 35% of the amount over $156,600 |
over $307,050 |
$91,744 + 38.6% of the amount over $307,050 |
Table 19. Statutory Marginal Tax Rates, 2003 Under Prior Law
(prior to enactment of the Jobs and Growth Tax Relief Reconciliation Act)
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $16,050
10% of the amount over $0
over $16,050 to $65,100
$1,605 + 15% of the amount over $16,050
over $65,100 to $131,450
$8,962.50 + 25% of the amount over $65,100
over $131,450 to $200,300
$25,550 + 28% of the amount over $131,450
over $200,300 to $357,700
$44,828 + 33% of the amount over $200,300
over $357,700
$96,770 + 35% of the amount over $357,700
Single Returns
| ||
$0 |
to |
$12,000 |
10% of the amount over $0 |
over $12,000 |
to |
$47,450 |
$1,200 + 15% of the amount over $12,000 |
over $47,450 |
to |
$114,650 |
$6,518 + 27% of the amount over $47,450 |
over $114,650 |
to |
$174,700 |
$24,662 + 30% of the amount over $114,650 |
over $174,700 |
to |
$311,950 |
$42,677 + 35% of the amount over $174,700 |
over $311,950 |
$90,714 + 38.6% of the amount over $311,950 |
||
Standard Deduction for a joint return was $7,950 |
|||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $8,025
10% of the amount over $0
over $8,025 to $32,550
$802.50 + 15% of the amount over $8,025
over $32,550 to $78,850
$4,481.25 + 25% of the amount over $32,550
over $78,850 to $164,550
$16,056.25 + 28% of the amount over $78,850
Congressional Research Service
21
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $164,550 to $357,700
$40,052.25 + 33% of the amount over $164,550
over $357,700
$103,791.75 + 35% of the amount over $357,700
Head-of-Household Returns
| ||
$0 |
to |
$6,000 |
10% of the amount over $0 |
over $6,000 |
to |
$28,400 |
$600 + 15% of the amount over $6,000 |
over $28,400 |
to |
$68,800 |
$3,960 + 27% of the amount over $28,400 |
over $68,800 |
to |
$143,500 |
$14,868 + 30% of the amount over $68,800 |
over $143,500 |
to |
$311,950 |
$37,278 + 35% of the amount over $143,500 |
over $311,950 |
$96,236 + 38.6% of the amount over $311,950 |
||
Standard deduction for a single return is $4,750 |
|||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $11,450
10% of the amount over $0
over $11,450 to $43,650
$1,145 + 15% of the amount over $11,450
over $43,650 to $112,650
$5,975 + 25% of the amount over $43,650
over $112,650 to $182,400
$23,225 + 28% of the amount over $112,650
over $182,400 to $357,700
$42,755 + 33% of the amount over $182,400
over $357,700
$100,604 + 35% of the amount over $357,700
Source: IRS Revenue Procedure 2007-66.
Table 15. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2007
Personal Exemption:
$3,400
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$234,600
Single
$156,400
Head of Household
$195,500
Standard Deduction:
Joint
$10,700
Single
$5,350
Head of Household
$7,850
Additional Standard Deductions for the Elderly or the Blind:
Joint (each spouse)
$1,050
Single/Head of Household
$1,300
Limitation on itemized deductions:
$156,400
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2007
Joint Returns
| ||
$0 |
to |
$10,000 |
10% of the amount over $0 |
over $10,000 |
to |
$38,050 |
$1,000 + 15% of the amount over $10,000 |
over $38,050 |
to |
$98,250 |
$5,208 + 27% of the amount over $38,050 |
over $98,250 |
to |
$159,100 |
$21,462 + 30% of the amount over $98,250 |
over $159,100 |
to |
$311,950 |
$39,717 + 35% of the amount over $159,100 |
over $311,950 |
$93,214 + 38.6% of the amount over $311,950 |
||
Standard deduction for head of household return is $7,000 |
Table 20. Personal Exemptions and Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout, 2003
(after enactment of the Jobs and Growth Tax Relief Reconciliation Act)
Personal Exemption |
$3,050 |
Standard Deduction: |
|
Joint |
$9,500 |
Single |
$4,750 |
Head of Household |
$7,000 |
Additional Standard Deductions for the Elderly or the Blind and Limitation on Itemized Deductions: |
|
Joint |
$950 |
Single/Head of Household |
$1,150 |
Limitation on itemized deductions: |
$139,500 |
Phaseout of Personal Exemption begins at the following adjusted gross incomes: |
|
Joint |
$209,250 |
Head of household |
$174,400 |
Single |
$139,500 |
Table 21. Statutory Marginal Income Tax Rates, 2003
(after enactment of the Jobs and Growth Tax Relief Reconciliation Act)
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $15,650
10% of the amount over $0
over $15,650 to $63,700
$1,565 + 15% of the amount over $15,650
Congressional Research Service
22
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $63,700 to $128,500
$8,773 + 25% of the amount over $63,700
over $128,500 to $195,850
$24,973 + 28% of the amount over $128,500
over $195,850 to $349,700
$43,831 + 33% of the amount over $195,850
over $349,700
$94,601 + 35% of the amount over $349,700
Single Returns
| ||
$0 |
to |
$14,000 |
10% of the amount over $0 |
over $14,000 |
to |
$56,800 |
$1,400 + 15% of the amount over $14,000 |
over $56,800 |
to |
$114,650 |
$7,820 + 25% of the amount over $56,800 |
over $114,650 |
to |
$174,700 |
$22,283 + 28% of the amount over $114,650 |
over $174,700 |
to |
$311,950 |
$39,097 + 33% of the amount over $174,700 |
over $311,950 |
$84,390 + 35% of the amount over $311,950 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $7,825
10% of the amount over $0
over $7,825 to $31,850
$783 + 15% of the amount over $7,825
over $31,850 to $77,100
$4,386 + 25% of the amount over $31,850
over $77,100 to $160,850
$15,699 + 28% of the amount over $77,100
over $160,850 to $349,700
$39,149 + 33% of the amount over $160,850
over $349,700
$101,469 + 35% of the amount over $349,700
Head-of-Household Returns
| ||
$0 |
to |
$7,000 |
10% of the amount over $0 |
over $7,000 |
to |
$28,400 |
$700 + 15% of the amount over $7,000 |
over $28,400 |
to |
$68,800 |
$3,910 + 25% of the amount over $28,400 |
over $68,800 |
to |
$143,500 |
$14,010 + 28% of the amount over $68,800 |
over $143,500 |
to |
$311,950 |
$34,926 + 33% of the amount over $143,500 |
over $311,950 |
$90,515 + 35% of the amount over $311,950 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $11,200
10% of the amount over $0
over $11,200 to $42,650
$1,120 + 15% of the amount over $11,200
over $42,650 to $110,100
$5,838 + 25% of the amount over $42,650
over $110,100 to $178,350
$22,700 + 28% of the amount over $110,100
over $178,350 to $349,700
$41,810 + 33% of the amount over $178,350
over $349,700
$98,356 + 35% of the amount over $349,700
Table 16. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2006
Personal Exemption:
$3,300
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$225,750
Head of Household
$188,150
Single
$150,500
Standard Deduction:
Joint
$10,300
Single
$5,150
Head of Household
$7,550
Additional Standard Deductions for the Elderly or the Blind:
Joint (each spouse)
$1,000
Single/Head of Household
$1,250
Congressional Research Service
23
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on itemized deductions:
$150,500
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2006
Joint Returns
| ||
$0 |
to |
$10,000 |
10% of the amount over $0 |
over $10,000 |
to |
$38,050 |
$1,000 + 15% of the amount over $10,000 |
over $38,050 |
to |
$98,250 |
$5,208 + 25% of the amount over $38,050 |
over $98,250 |
to |
$159,100 |
$20,258 + 28% of the amount over $98,250 |
over $159,100 |
to |
$311,950 |
$37,296 + 33% of the amount over $159,100 |
over $311,950 |
$87,737 + 35% of the amount over $311,950 |
Table 22. Personal Exemptions and Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout, 2004
Personal Exemption |
$3,100 |
Standard Deduction: |
|
Joint |
$9,700 |
Single |
$4,850 |
Head of Household |
$7,150 |
Additional Standard Deductions for the Elderly or the Blind and Limitation on Itemized Deductions: |
|
Joint |
$950 |
Single/Head of Household |
$1,200 |
Limitation on itemized deductions: |
$142,700 |
Phaseout of Personal Exemption begins at the following adjusted gross incomes: |
|
Joint |
$214,050 |
Head of household |
$178,350 |
Single |
$142,700 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $15,100
10% of the amount over $0
over $15,100 to $61,300
$1,510 + 15% of the amount over $15,100
over $61,300 to $123,700
$8,440 + 25% of the amount over $61,300
over $123,700 to $188,450
$24,040 + 28% of the amount over $123,700
over $188,450 to $336,550
$42,170 + 33% of the amount over $188,450
over $336,550
$91,043 + 35% of the amount over $336,550
Single Returns
| ||
$ 0 |
to |
$14,300 |
10% of the amount over $0 |
over $14,300 |
to |
$58,100 |
$1,430 + 15% of the amount over $14,300 |
over $58,100 |
to |
$117,250 |
$8,000 + 25% of the amount over $58,100 |
over $117,250 |
to |
$178,650 |
$22,788 + 28% of the amount over $117,250 |
over $178,650 |
to |
$319,100 |
$39,980 + 33% of the amount over $178,650 |
over $319,100 |
$86,328 + 35% of the amount over $319,100 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $7,550
10% of the amount over $0
over $7,550 to $30,650
$755 + 15% of the amount over $7,550
over $30,650 to $74,200
$4,220 + 25% of the amount over $30,650
over $74,200 to $154,800
$15,108 + 28% of the amount over $74,200
over $154,800 to $336,550
$37,676 + 33% of the amount over $154,800
over $336,550
$97,653 + 35% of the amount over $336,550
Head-of-Household Returns
| ||
$0 |
to |
$7,150 |
10% of the amount over $0 |
over $7,150 |
to |
$29,050 |
$715 + 15% of the amount over $7,150 |
over $29,050 |
to |
$70,350 |
$4,000 + 25% of the amount over $29,050 |
over $70,350 |
to |
$146,750 |
$14,325 + 28% of the amount over $70,350 |
over $146,750 |
to |
$319,100 |
$35,717 + 33% of the amount over $146,750 |
over $319,100 |
$92,593 + 35% of the amount over $319,100 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $10,750
10% of the amount over $0
over $10,750 to $41,050
$1,075 + 15% of the amount over $10,750
over $41,050 to $106,000
$5,620 + 25% of the amount over $41,050
over $106,000 to $171,650
$21,858 + 28% of the amount over $106,000
over $171,650 to $336,550
$40,240 + 33% of the amount over $171,650
over $336,550
$94,657 + 35% of the amount over $336,550
Source: IRS Revenue Procedure 2005-70.
Table 17. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax
Rates, 2005
Personal Exemption:
$3,200
Personal exemption began to phase out at a rate of %2 for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Congressional Research Service
24
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Joint
$218,950
Single
$145,950
Head of Household
$182,450
Standard Deduction:
Joint
$10,000
Single
$5,000
Head of Household
$7,300
Additional Standard Deductions for the Elderly or the Blind and Limitation | ||
$0 |
to |
$10,200 |
10% of the amount over $0 |
over $10,200 |
to |
$38,900 |
$1,020 + 15% of the amount over $10,200 |
over $38,900 |
to |
$100,500 |
$5,325 + 25% of the amount over $38,900 |
over $100,500 |
to |
$162,700 |
$20,725 + 28% of the amount over $100,500 |
over $162,700 |
to |
$319,100 |
$38,141 + 33% of the amount over $162,700 |
over $319,100 |
$89,753 + 35% of the amount over $319,100 |
Table 24. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions and the Personal Exemption Phaseout Thresholds, 2005
Personal Exemption |
$3,200 |
Standard Deduction: |
|
Joint |
$10,000 |
Single |
$5,000 |
Head of Household |
$7,300 |
Additional Standard Deductions for the Elderly or the Blind and Limitation on Itemized Deductions: |
|
Joint (each spouse) |
$1,000 |
Single/Head of Household |
$1,250 |
Limitation on itemized deductions: |
$145,950 |
Phaseout of Personal Exemption begins at the following adjusted gross incomes: |
|
Joint |
$218,950 |
Head of household |
$182,450 |
Single |
$145,950 |
Joint Returns |
|||
on Itemized Deductions:
Joint (each spouse)
$1,000
Single/Head of Household
$1,250
Limitation on Itemized Deductions:
$145,950 (for al filers except married persons filing
separately)
If an individual’s adjusted gross income (AGI) exceeded the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2005
Joint Returns
If taxable income is:
|
Then, tax is: |
||
$0 |
to |
$14,600 |
10% of the amount over $0 |
over $14,600 |
to |
$59,400 |
$1,460 + 15% of the amount over $14,600 |
over $59,400 |
to |
$119,950 |
$8,180 + 25% of the amount over $59,400 |
over $119,950 |
to |
$182,800 |
$23,318 + 28% of the amount over $119,950 |
over $182,800 |
to |
$326,450 |
$40,916 + 33% of the amount over $182,800 |
over $326,450 |
$88,321 + 35% of the amount over $326,450 |
||
Single Returns |
|||
Then, tax is:
$0 to $14,600
10% of the amount over $0
over $14,600 to $59,400
$1,460 + 15% of the amount over $14,600
over $59,400 to $119,950
$8,180 + 25% of the amount over $59,400
over $119,950 to $182,800
$23,318 + 28% of the amount over $119,950
over $182,800 to $326,450
$40,916 + 33% of the amount over $182,800
over $326,450
$88,321 + 35% of the amount over $326,450
Single Returns
If taxable income is:
|
Then, tax is: |
||
$0 |
to |
$7,300 |
10% of the amount over $0 |
over $7,300 |
to |
$29,700 |
$730 + 15% of the amount over $7,300 |
over $29,700 |
to |
$71,950 |
$4,090 + 25% of the amount over $29,700 |
over $71,950 |
to |
$150,150 |
$14,653 + 28% of the amount over $71,950 |
over $150,150 |
to |
$326,450 |
$36,549 + 33% of the amount over $150,150 |
over $326,450 |
$94,728 + 35% of the amount over $326,450 |
||
Head-of-Household Returns |
|||
Then, tax is:
$0 to $7,300
10% of the amount over $0
over $7,300 to $29,700
$730 + 15% of the amount over $7,300
over $29,700 to $71,950
$4,090 + 25% of the amount over $29,700
over $71,950 to $150,150
$14,653 + 28% of the amount over $71,950
over $150,150 to $326,450
$36,549 + 33% of the amount over $150,150
over $326,450
$94,728 + 35% of the amount over $326,450
Head-of-Household Returns
If taxable income is:
|
Then, tax is: |
||
$0 |
to |
$10,450 |
10% of the amount over $0 |
over $10,450 |
to |
$39,800 |
$1,045 + 15% of the amount over $10,450 |
over $39,800 |
to |
$102,800 |
$5,448 + 25% of the amount over $39,800 |
over $102,800 |
to |
$166,450 |
$21,198 + 28% of the amount over $102,800 |
over $166,450 |
to |
$326,450 |
$39,020 + 33% of the amount over $166,450 |
over $326,450 |
Then, tax is:
$0 to $10,450
10% of the amount over $0
over $10,450 to $39,800
$1,045 + 15% of the amount over $10,450
over $39,800 to $102,800
$5,448 + 25% of the amount over $39,800
Congressional Research Service
25
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $102,800 to $166,450
$21,198 + 28% of the amount over $102,800
over $166,450 to $326,450
$39,020 + 33% of the amount over $166,450
over $326,450
$91,820 + 35% of the amount over $326,450
Source: IRS Revenue Procedure 2004-71.
Table 18. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of the Personal Exemption, and Statutory Marginal Tax Rates,
2004
Personal Exemption:
$3,100
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$214,050
Single
$142,700
Head of Household
$178,350
Standard Deduction:
Joint
$9,700
Single
$4,850
Head of Household
$7,150
Additional Standard Deductions for the Elderly or the Blind and Limitation |
Table 26. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions and the Personal Exemption Phaseout Thresholds, 2006
Personal Exemption |
$3,300 |
Standard Deduction: |
|
Joint |
$10,300 |
Single |
$5,150 |
Head of Household |
$7,550 |
Additional Standard Deductions for the Elderly or the Blind and Limitation on Itemized Deductions: |
|
Joint (each spouse) |
$1,000 |
Single/Head of Household |
$1,250 |
Limitation on itemized deductions: |
$150,500 |
Phaseout of Personal Exemptions begins at the following adjusted gross incomes: |
|
Joint |
$225,750 |
Head of household |
$188,150 |
Single |
$150,500 |
Joint Returns |
|||
on Itemized Deductions:
Joint
$950
Single/Head of Household
$1,200
Limitation on Itemized Deductions:
$142,700 (for al filers except married persons filing
separately)
If an individual’s adjusted gross income (AGI) exceeded the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2004
Joint Returns
If taxable income is:
|
Then, tax is: |
||
$0 |
to |
$15,100 |
10% of the amount over $0 |
over $15,100 |
to |
$61,300 |
|
over $61,300 |
to |
$123,700 |
$8,440 + 25% of the amount over $61,300 |
over $123,700 |
to |
$188,450 |
$24,040 + 28% of the amount over $123,700 |
over $188,450 |
to |
$336,550 |
$42,170 + 33% of the amount over $188,450 |
over $336,550 |
$91,043 + 35% of the amount over $336,550 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $7,150
10% of the amount over $0
over $7,150 to $29,050
$715 + 15% of the amount over $7,150
over $29,050 to $70,350
$4,000 + 25% of the amount over $29,050
over $70,350 to $146,750
$14,325 + 28% of the amount over $70,350
over $146,750 to $319,100
$35,717 + 33% of the amount over $146,750
over $319,100
$92,593 + 35% of the amount over $319,100
Head-of-Household Returns
| ||
$0 |
to |
$7,550 |
10% of the amount over $0 |
over $7,550 |
to |
$30,650 |
$755 + 15% of the amount over $7,550 |
over $30,650 |
to |
$74,200 |
$4,220 + 25% of the amount over $30,650 |
over $74,200 |
to |
$154,800 |
$15,108 + 28% of the amount over $74,200 |
over $154,800 |
to |
$336,550 |
$37,676 + 33% of the amount over $154,800 |
over $336,550 |
$97,653 + 35% of the amount over $336,550 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $10,200
10% of the amount over $0
over $10,200 to $38,900
$1,020 + 15% of the amount over $10,200
over $38,900 to $100,500
$5,325 + 25% of the amount over $38,900
over $100,500 to $162,700
$20,725 + 28% of the amount over $100,500
over $162,700 to $319,100
$38,141 + 33% of the amount over $162,700
over $319,100
$89,753 + 35% of the amount over $319,100
Source: IRS Revenue Procedure 2003-85.
Table 19. Personal Exemptions, Standard Deductions, Limitation on Itemized
Deductions, Personal Exemption Phaseout, and Statutory Marginal Tax Rates, 2003
(after enactment of the Jobs and Growth Tax Relief Reconciliation Act)
Personal Exemption:
$3,050
Personal exemption began to phase out at a rate of 2% for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$209,250
Single
$139,500
Head of Household
$174,400
Standard Deduction:
Joint
$9,500
Single
$4,750
Head of Household
$7,000
Additional Standard Deductions for the Elderly or the Blind and Limitation on Itemized Deductions:
Joint
$950
Single/Head of Household
$1,150
Congressional Research Service
27
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on Itemized Deductions:
$139,500
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2003
(after enactment of the Jobs and Growth Tax Relief Reconciliation Act)
Joint Returns
| ||
$0 |
to |
$10,750 |
10% of the amount over $0 |
over $10,750 |
to |
$41,050 |
$1,075 + 15% of the amount over $10,750 |
over $41,050 |
to |
$106,000 |
$5,620 + 25% of the amount over $41,050 |
over $106,000 |
to |
$171,650 |
$21,858 + 28% of the amount over $106,000 |
over $171,650 |
to |
$336,550 |
$40,240 + 33% of the amount over $171,650 |
over $336,550 |
$94,657 + 35% of the amount over $336,550 |
Table 28. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions and the Personal Exemption Phaseout Thresholds, 2007
Personal Exemption |
$3,400 |
Standard Deduction: |
|
Joint |
$10,700 |
Single |
$5,350 |
Head of Household |
$7,850 |
Additional Standard Deductions for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,050 |
Single/Head of Household |
$1,300 |
Limitation on itemized deductions: |
$156,400 |
Phaseout of Personal Exemptions begins at the following adjusted gross incomes: |
|
Joint |
$234,600 |
Head of household |
$195,500 |
Single |
$156,400 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $14,000
10% of the amount over $0
over $14,000 to $56,800
$1,400 + 15% of the amount over $14,000
over $56,800 to $114,650
$7,820 + 25% of the amount over $56,800
over $114,650 to $174,700
$22,283 + 28% of the amount over $114,650
over $174,700 to $311,950
$39,097 + 33% of the amount over $174,700
over $311,950
$84,390 + 35% of the amount over $311,950
Single Returns
| ||
$0 |
to |
$15,650 |
10% of the amount over $0 |
over $15,650 |
to |
$63,700 |
$1,565 + 15% of the amount over $15,650 |
over $63,700 |
to |
$128,500 |
$8,773 + 25% of the amount over $63,700 |
over $128,500 |
to |
$195,850 |
$24,973 + 28% of the amount over $128,500 |
over $195,850 |
to |
$349,700 |
$43,831 + 33% of the amount over $195,850 |
over $349,700 |
$94,601 + 35% of the amount over $349,700 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $7,000
10% of the amount over $0
over $7,000 to $28,400
$700 + 15% of the amount over $7,000
over $28,400 to $68,800
$3,910 + 25% of the amount over $28,400
over $68,800 to $143,500
$14,010 + 28% of the amount over $68,800
over $143,500 to $311,950
$34,926 + 33% of the amount over $143,500
over $311,950
$90,515 + 35% of the amount over $311,950
Head-of-Household Returns
| ||
$0 |
to |
$7,825 |
10% of the amount over $0 |
over $7,825 |
to |
$31,850 |
$783 + 15% of the amount over $7,825 |
over $31,850 |
to |
$77,100 |
$4,386 + 25% of the amount over $31,850 |
over $77,100 |
to |
$160,850 |
$15,699 + 28% of the amount over $77,100 |
over $160,850 |
to |
$349,700 |
$39,149 + 33% of the amount over $160,850 |
over $349,700 |
$101,469 + 35% of the amount over $349,700 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $10,000
10% of the amount over $0
over $10,000 to $38,050
$1,000 + 15% of the amount over $10,000
over $38,050 to $98,250
$5,208 + 25% of the amount over $38,050
over $98,250 to $159,100
$20,258 + 28% of the amount over $98,250
over $159,100 to $311,950
$37,296 + 33% of the amount over $159,100
over $311,950
$87,737 + 35% of the amount over $311,950
Source: IRS Revenue Procedure 2002-70.
Congressional Research Service
28
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Table 20. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
2002
Personal Exemption:
$3,000
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$206,000
Single
$137,300
Head of Household
$171,650
Standard Deduction:
Joint
$7,850
Single
$4,700
Head of Household
$6,900
Additional Standard Deductions for the Elderly or the Blind:
Joint
$900
Single/Head of Household
$1,150
Limitation on Itemized Deductions:
$137,300
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
the amount shown in the right column, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Tax Rates, 2002
Joint Returns
| ||
$0 |
to |
$11,200 |
10% of the amount over $0 |
over $11,200 |
to |
$42,650 |
$1,120 + 15% of the amount over $11,200 |
over $42,650 |
to |
$110,100 |
$5,838 + 25% of the amount over $42,650 |
over $110,100 |
to |
$178,350 |
$22,700 + 28% of the amount over $110,100 |
over $178,350 |
to |
$349,700 |
$41,810 + 33% of the amount over $178,350 |
over $349,700 |
$98,356 + 35% of the amount over $349,700 |
Table 30. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions and the Personal Exemption Phaseout Thresholds, 2008
Personal Exemption |
$3,500 |
Standard Deduction: |
|
Joint |
$10,900 |
Single |
$5,450 |
Head of Household |
$8,000 |
Additional Standard Deductions for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,050 |
Single/Head of Household |
$1,350 |
Limitation on itemized deductions: |
$159,950 |
Phaseout of personal exemption begins at AGIs of: |
|
Joint |
$239,950 |
Head of household |
$199,900 |
Single |
$159,950 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $12,000
10% of the amount over $0
over $12,000 to $46,700
$1,200 + 15% of the amount over $12,000
over $46,700 to $112,850
$6,405 + 27% of the amount over $46,700
over $112,850 to $171,950
$24,266 + 30% of the amount over $112,850
over $171,950 to $307,050
$41,996 + 35% of the amount over $171,950
over $307,050
$89,281 + 38.6% of the amount over $307,050
Single Returns
| ||
$0 |
to |
$16,050 |
10% of the amount over $0 |
over $16,050 |
to |
$65,100 |
$1,605 + 15% of the amount over $16,050 |
over $65,100 |
to |
$131,450 |
$8,962.50 + 25% of the amount over $65,100 |
over $131,450 |
to |
$200,300 |
$25,550 + 28% of the amount over $131,450 |
over $200,300 |
to |
$357,700 |
$44,828 + 33% of the amount over $200,300 |
over $357,700 |
$96,770 + 35% of the amount over $357,700 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $6,000
10% of the amount over $0
over $6,000 to $27,950
$600 + 15% of the amount over $6,000
over $27,950 to $67,700
$3,893 + 27% of the amount over $27,950
over $67,700 to $141,250
$14,626 + 30% of the amount over $67,700
Congressional Research Service
29
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $141,250 to $307,050
$36,691 + 35% of the amount over $141,250
over $307,050
$94,721 + 38.6% of the amount over $307,050
Head-of-Household Returns
| ||
$0 |
to |
$8,025 |
10% of the amount over $0 |
over $8,025 |
to |
$32,550 |
$802.50 + 15% of the amount over $8,025 |
over $32,550 |
to |
$78,850 |
$4,481.25 + 25% of the amount over $32,550 |
over $78,850 |
to |
$164,550 |
$16,056.25 + 28% of the amount over $78,850 |
over $164,550 |
to |
$357,700 |
$40,052.25 + 33% of the amount over $164,550 |
over $357,700 |
$103,791.75 + 35% of the amount over $357,700 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $10,000
10% of the amount over $0
over $10,000 to $37,450
$1,000 + 15% of the amount over $10,000
over $37,450 to $96,700
$5,118 + 27% of the amount over $37,450
over $96,700 to $156,600
$21,116 + 30% of the amount over $96,700
over $156,600 to $307,050
$39,086 + 35% of the amount over $156,600
over $307,050
$91,744 + 38.6% of the amount over $307,050
Source: IRS Revenue Procedure 2001-59.
Table 21. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
2001
Personal Exemption:
$2,900
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$199,450
Single
$132,950
Head of Household
$166,200
Standard Deduction:
Joint
$7,600
Single
$4,550
Head of Household
$6,650
Additional Standard Deductions for the Elderly or the Blind:
Joint
$900
Single/Head of Household
$1,100
Limitation on Itemized Deductions:
$132,950
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except for married persons filing
this amount, the itemized deductions that could be
separately)
claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2001
Joint Returns
| ||
$0 |
to |
$11,450 |
10% of the amount over $0 |
over $11,450 |
to |
$43,650 |
$1,145 + 15% of the amount over $11,450 |
over $43,650 |
to |
$112,650 |
$5,975 + 25% of the amount over $43,650 |
over $112,650 |
to |
$182,400 |
$23,225 + 28% of the amount over $112,650 |
over $182,400 |
to |
$357,700 |
$42,755 + 33% of the amount over $182,400 |
over $357,700 |
$100,604 + 35% of the amount over $357,700 |
Table 32. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions and the Personal Exemption Phaseout Thresholds, 2009
Personal Exemption |
$3,650 |
Standard Deduction: |
|
Joint |
$11,400 |
Single |
$5,700 |
Head of Household |
$8,350 |
Additional Standard Deductions for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,100 |
Single/Head of Household |
$1,400 |
Limitation on itemized deductions: |
$166,800 |
Phaseout of personal exemption begins at the following adjusted gross incomes: |
|
Joint |
$250,200 |
Head of household |
$208,500 |
Single |
$166,800 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $45,200
15% of the amount over $0
Congressional Research Service
30
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $45,200 to $109,250
$6,780 + 27.5% of the amount over $45,200
over $109,250 to $166,500
$24,394 + 30.5% of the amount over $109,250
over $166,500 to $297,350
$41,855 + 35.5% of the amount over $166,500
over $297,350
$88,307 + 39.1% of the amount over $297,350
Single Returns
| ||
$0 |
to |
$16,700 |
10% of the amount over $0 |
over $16,700 |
to |
$67,900 |
$1,670 + 15% of the amount over $16,700 |
over $67,900 |
to |
$137,050 |
$9,350 + 25% of the amount over $67,900 |
over $137,050 |
to |
$208,850 |
$26,637.50 + 28% of the amount over $137,050 |
over $208,850 |
to |
$372,950 |
$46,741.50 + 33% of the amount over $208,850 |
over $372,950 |
$100,894.50 + 35% of the amount over $372,950 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $27,050
15% of the amount over $0
over $27,050 to $65,550
$4,058 + 27.5% of the amount over $27,050
over $65,550 to $136,750
$14,646 + 30.5% of the amount over $65,550
over $136,750 to $297,350
$36,362 + 35.5% of the amount over $136,750
over $297,350
$93,375 + 39.1% of the amount over $297,350
Head-of-Household Returns
| ||
$0 |
to |
$8,350 |
10% of the amount over $0 |
over $8,350 |
to |
$33,950 |
$835 + 15% of the amount over $8,350 |
over $33,950 |
to |
$82,250 |
$4,675 + 25% of the amount over $33,950 |
over $82,250 |
to |
$171,550 |
$16,750 + 28% of the amount over $82,250 |
over $171,550 |
to |
$372,950 |
$41,754 + 33% of the amount over $171,550 |
over $372,950 |
$108,216 + 35% of the amount over $372,950 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $36,250
15% of the amount over $0
over $36,250 to $93,650
$5,438 + 27.5% of the amount over $36,250
over $93,650 to $151,650
$21,223 + 30.5% of the amount over $93,650
over $151,650 to $297,350
$38,913 + 35.5% of the amount over $151,650
over $297,350
$90,637 + 39.1% of the amount over $297,350
Source: IRS Revenue Procedure 2001-13.
Table 22. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
2000
Personal Exemption:
$2,800
Personal exemption began to phase out at a rate of 2%
for every $2,500 a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$193,400
Single
$128,950
Head of Household
$161,150
Standard Deduction:
Joint
$7,350
Single
$4,400
Head of Household
$6,450
Additional Standard Deductions for the Elderly or the Blind:
Joint
$850
Single/Head of Household
$1,100
Congressional Research Service
31
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on Itemized Deductions:
$128,950
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 2000
Joint Returns
| ||
$0 |
to |
$11,950 |
10% of the amount over $0 |
over $11,950 |
to |
$45,500 |
$1,195 + 15% of the amount over $11,950 |
over$45,500 |
to |
$117,450 |
$6,227.50 + 25% of the amount over $45,500 |
over $117,450 |
to |
$190,200 |
$24,215 + 28% of the amount over $117,450 |
over $190,200 |
to |
$372,950 |
$44,585 + 33% of the amount over $190,200 |
over $372,950 |
$104,892.50 + 35% of the amount over $372,950 |
Table 34. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2010
Personal Exemption |
$3,650 |
Standard Deduction: |
|
Joint |
$11,400 |
Single |
$5,700 |
Head of Household |
$8,400 |
Additional Standard Deductions for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,100 |
Single/Head of Household |
$1,400 |
Limitation on itemized deductions: |
Terminated on Dec. 31, 2009 |
Phaseout of personal exemptions: |
|
Joint |
Terminated on Dec. 31, 2009 |
Head of household |
Terminated on Dec. 31, 2009 |
Single |
Terminated on Dec. 31, 2009 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $43,850
15% of the amount over $0
over $43,850 to $105,950
$6,578 + 28% of the amount over $43,850
over $105,950 to $161,450
$23,966 + 31% of the amount over $105,950
over $161,450 to $288,350
$41,171 + 36% of the amount over $161,450
over $288,350
$86,855 + 39.6% of the amount over $288,350
Single Returns
| ||
$0 |
to |
$16,750 |
10% of the amount over $0 |
over $16,750 |
to |
$68,000 |
$1,675 + 15% of the amount over $16,750 |
over $68,000 |
to |
$137,300 |
$9,362.50 + 25% of the amount over $68,000 |
over $137,300 |
to |
$209,250 |
$26,687.50 + 28% of the amount over $137,300 |
over $209,250 |
to |
$373,650 |
$46,833.50 + 33% of the amount over $209,250 |
over $373,650 |
$100,894.50 + 35% of the amount over $373,650 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $26,250
15% of the amount over $0
over $26,250 to $63,550
$3,938 + 28% of the amount over $26,250
over $63,550 to $132,600
$14,382 + 31% of the amount over $63,550
over $132,600 to $288,350
$35,787 + 36% of the amount over $132,600
over $288,350
$91,857 + 39.6% of the amount over $288,350
Head-of-Household Returns
| ||
$0 |
to |
$8,375 |
10% of the amount over $0 |
over $8,375 |
to |
$34,000 |
$837.50 + 15% of the amount over $8,375 |
over $34,000 |
to |
$82,400 |
$4,681.25 + 25% of the amount over $34,000 |
over $82,400 |
to |
$171,850 |
$16,781.25 + 28% of the amount over $82,400 |
over $171,850 |
to |
$373,650 |
$41,827.25 + 33% of the amount over $171,850 |
over $373,650 |
$108,421.25 + 35% of the amount over $373,650 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $35,150
15% of the amount over $0
over $35,150 to $90,800
$5,273 + 28% of the amount over $35,150
over $90,800 to $147,050
$20,855 + 31% of the amount over $90,800
over $147,050 to $288,350
$38,292 + 36% of the amount over $147,050
over $288,350
$89,160 + 39.6% of the amount over $288,350
Source: IRS Revenue Procedure 99-42.
Table 23. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1999
Personal Exemption:
$2,750
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Congressional Research Service
32
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Joint
$189,950
Single
$126,600
Head of Household
$158,300
Standard Deduction:
Joint
$7,200
Single
$4,300
Head of Household
$6,350
Additional Standard Deductions for the Elderly or the Blind:
Joint
$850
Single/Head of Household
$1,050
Limitation on Itemized Deductions:
$126,600
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1999
Joint Returns
| ||
$0 |
to |
$11,950 |
10% of the amount over $0 |
over $11,950 |
to |
$45,550 |
$1,195 + 15% of the amount over $11,950 |
over $45,550 |
to |
$117,650 |
$6,235 + 25% of the amount over $45,550 |
over $117,650 |
to |
$190,550 |
$24,215 + 28% of the amount over $117,650 |
over $190,550 |
to |
$373,650 |
$44,672 + 33% of the amount over $190,550 |
over $373,650 |
$105,095 + 35% of the amount over $373,650 |
Table 36. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2011
Personal Exemption |
$3,700 |
Standard Deduction: |
|
Joint |
$11,600 |
Single |
$5,800 |
Head of Household |
$8,500 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,150 |
Single/Head of Household |
$1,450 |
Limitation on itemized deductions: |
Terminated on Dec. 31, 2009 |
Phaseout of personal exemption: |
|
Joint |
Terminated on Dec. 31, 2009 |
Head of household |
Terminated on Dec. 31, 2009 |
Single |
Terminated on Dec. 31, 2009 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $43,050
15% of the amount over $0
over $43,050 to $104,050
$6,458 + 28% of the amount over $43,050
over $104,050 to $158,550
$23,538 + 31% of the amount over $104,050
over $158,550 to $283,150
$40,433 + 36% of the amount over $158,550
over $283,150
$85,289 + 39.6% of the amount over $283,150
Single Returns
| ||
$ 0 |
to |
$17,000 |
10% of the amount over $0 |
over $17,000 |
to |
$69,000 |
$1,700 + 15% of the amount over $17,000 |
over $69,000 |
to |
$139,350 |
$9,.500 + 25% of the amount over $69,000 |
over $139,350 |
to |
$212,300 |
$27,087.50 + 28% of the amount over $139,350 |
over $212,300 |
to |
$379,150 |
$47,513.50 + 33% of the amount over $212,300 |
over $379,150 |
$102,574 + 35% of the amount over $379,150 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $25,750
15% of the amount over $0
over $25,750 to $62,450
$3,863 + 28% of the amount over $25,750
over $62,450 to $130,250
$14,139 + 31% of the amount over $62,450
over $130,250 to $283,150
$35,157 + 36% of the amount over $130,250
over $283,150
$90,201 + 39.6% of the amount over $283,150
Head-of-Household Returns
| ||
$0 |
to |
$8,500 |
10% of the amount over $0 |
over $8,500 |
to |
$34,500 |
$850 + 15% of the amount over $8,500 |
over $34,500 |
to |
$83,600 |
$4,750 + 25% of the amount over $34,500 |
over $83,600 |
to |
$174,400 |
$17,025 + 28% of the amount over $83,600 |
over $174,400 |
to |
$379,150 |
$42,449 + 33% of the amount over $174,400 |
over $379,150 |
$110,016.50 + 35% of the amount over $379,150 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $34,550
15% of the amount over $0
over $34,550 to $89,150
$5,183 + 28% of the amount over $34,550
over $89,150 to $144,400
$20,471 + 31% of the amount over $89,150
over $144,400 to $283,150
$37,598 + 36% of the amount over $144,440
Congressional Research Service
33
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $283,150
$87,548 + 39.6% of the amount over $283,150
Source: IRS Revenue Procedure 98-61.
Table 24. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1998
Personal Exemption:
$2,700
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$186,800
Single
$124,500
Head of Household
$155,650
Standard Deduction:
Joint
$7,100
Single
$4,250
Head of Household
$6,250
Additional Standard Deductions for the Elderly or the Blind:
Joint
$850
Single/Head of Household
$1,050
Limitation on Itemized Deductions:
$124,500
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, casualty and theft losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1998
Joint Returns
| ||
$0 |
to |
$12,150 |
10% of the amount over $0 |
over $12,150 |
to |
$46,250 |
$1,215 + 15% of the amount over $12,150 |
over $46,250 |
to |
$119,400 |
$6,330 + 25% of the amount over $46,250 |
over $119,400 |
to |
$193,350 |
$24,617.50 + 28% of the amount over $119,400 |
over $193,350 |
to |
$379,150 |
$45,322.50 + 33% of the amount over $193,350 |
over $379,150 |
$106,637.50 + 35% of the amount over $379,150 |
Table 38. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2012
Personal Exemption |
$3,800 |
Standard Deduction: |
|
Joint |
$11,900 |
Single |
$5,950 |
Head of Household |
$8,700 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,150 |
Single/Head of Household |
$1,450 |
Limitation on itemized deductions: |
Terminated on Dec. 31, 2009 |
Phaseout of personal exemption: |
|
Joint |
Terminated on Dec. 31, 2009 |
Head of household |
Terminated on Dec. 31, 2009 |
Single |
Terminated on Dec. 31, 2009 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $42,350
15% of the amount over $0
over $42,350 to $102,300
$6,353 + 28% of the amount over $42,350
over $102,300 to $155,950
$23,139 + 31% of the amount over $102,300
over $155,950 to $278,450
$39,770 + 36% of the amount over $155,950
over $278,450
$83,870 + 39.6% of the amount over $278,450
Single Returns
| ||
$0 |
to |
$17,400 |
10% of the amount over $0 |
over $17,400 |
to |
$70,700 |
$1,700 + 15% of the amount over $17,000 |
over $70,700 |
to |
$142,700 |
$9,500 + 25% of the amount over $69,000 |
over $142,700 |
to |
$217,450 |
$27,087.50 + 28% of the amount over $139,350 |
over $217,450 |
to |
$388,350 |
$47,513.50 + 33% of the amount over $212,300 |
over $388,350 |
$102,574 + 35% of the amount over $379,150 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $25,350
15% of the amount over $0
over $25,350 to $61,400
$3,803 + 28% of the amount over $25,350
over $61,400 to $128,100
$13,897 + 31% of the amount over $61,400
Congressional Research Service
34
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $128,100 to $278,450
$34,574 + 36% of the amount over $128,100
over $278,450
$88,700 + 39.6% of the amount over $278,450
Head-of-Household Returns
| ||
$0 |
to |
$8,700 |
10% of the amount over $0 |
over $8,700 |
to |
$35,350 |
$850 + 15% of the amount over $8,500 |
over $35,350 |
to |
$85,650 |
$4,750 + 25% of the amount over $34,500 |
over $85,650 |
to |
$178,650 |
$17,025 + 28% of the amount over $83,600 |
over $178,650 |
to |
$388,350 |
$42,449 + 33% of the amount over $174,400 |
over $388,350 |
$110,016.50 + 35% of the amount over $379,150 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $33,950
15% of the amount over $0
over $33,950 to $87,700
$5,093 + 28% of the amount over $33,950
over $87,700 to $142,000
$20,143 + 31% of the amount over $87,700
over $142,000 to $278,450
$36,976+ 36% of the amount over $142,000
over $278,450
$86,098 + 39.6% of the amount over $278,450
Source: IRS Revenue Procedure 97-57.
Table 25. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1997
Personal Exemption:
$2,650
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$181,800
Single
$121,200
Head of Household
$151,500
Standard Deduction:
Joint
$6,900
Single
$4,150
Head of Household
$6,050
Additional Standard Deductions for the Elderly or the Blind:
Joint
$800
Single/Head of Household
$1,000
Limitation on Itemized Deductions:
$121,200
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount:
Statutory Marginal Income Tax Rates, 1997
Joint Returns
If taxable income is:
Then, tax is:
$0 to $41,200
15% of the amount over $0
over $41,200 to $99,600
$6,180 + 28% of the amount over $41,200
over $99,600 to $151,750
$22,532 + 31% of the amount over $99,600
over $151,750 to $271,050
$38,699 + 36% of the amount over $151,750
Congressional Research Service
35
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $271,050
$81,647 + 39.6% of the amount over $271,050
Single Returns
| ||
$0 |
to |
$12,400 |
10% of the amount over $0 |
over $12,400 |
to |
$47,350 |
$1,215 + 15% of the amount over $12,150 |
over $47,350 |
to |
$122,300 |
$6,330 + 25% of the amount over $46,250 |
over $122,300 |
to |
$198,050 |
$24,617.50 + 28% of the amount over $119,400 |
over $198,050 |
to |
$388,350 |
$45,322.50 + 33% of the amount over $193,350 |
over $388,350 |
$106,637.50 + 35% of the amount over $379,150 |
Table 40. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2013
Personal Exemption |
$3,900 |
Standard Deduction: |
|
Joint |
$12,200 |
Single |
$6,100 |
Head of Household |
$8,950 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,200 |
Single/Head of Household |
$1,500 |
Limitation on Itemized Deductions: |
Reduction in itemized deduction equal to the lesser of 3% of the excess of adjusted gross income above the following threshold amount, or 80% of the amount of itemized deductions otherwise allowable: |
Joint |
$300,000 |
Head of Household |
$275,000 |
Single |
$250,000 |
Phaseout of Personal Exemption |
Phaseout begins at the following adjusted gross incomes: |
Joint |
$422,501 |
Head of household |
$397,501 |
Single |
$372,501 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$125,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $ 24,650
15% of the amount over $0
over $24,650 to $ 59,750
$3,698 + 28% of the amount over $24,650
over $59,750 to $ 124,650
$13,526 + 31% of the amount over $59,750
over $124,650 to $ 271,050
$33,645 + 36% of the amount over $124,650
over $271,050
$86,349 + 39.6% of the amount over $271,050
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $33,050
15% of the amount over $0
over $33,050 to $83,350
$4,958 + 28% of the amount over $33,050
over $83,350 to $138,200
$19,602 + 31% of the amount over $85,350
over $138,200 to $271,050
$35,986 + 36% of the amount over $138,200
over $271,050
$83,812 + 39.6% of the amount over $271,050
Source: IRS Revenue Procedure 96-63.
Table 26. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1996
Personal Exemption:
$2,550
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$176,950
Single
$117,950
Head of Household
$147,450
Standard Deduction:
Joint
$6,700
Single
$4,000
Head of Household
$5,900
Additional Standard Deductions for the Elderly
or the Blind:
Joint
$800
Single/Head of Household
$1,000
Congressional Research Service
36
Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Limitation on Itemized Deductions:
$117,950
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, casualty and theft losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1996
Joint Returns
If taxable income is:
Then, tax is:
$0 to $40,100
15% of the amount over $0
over $40,100 to $96,900
$6,015 + 28% of the amount over $40,100
over $96,900 to $147,700
$21,919 + 31% of the amount over $96,900
over $147,700 to $263,750
$37,667 + 36% of the amount over $147,700
over $263,750
$79,445 + 39.6% of the amount over $263,750
Single Returns
| ||
$0 |
to |
$17,850 |
10% of the amount over $0 |
over $17,850 |
to |
$72,500 |
$1,785 + 15% of the amount over $17,850 |
over $72,500 |
to |
$146,400 |
$9,982.50 + 25% of the amount over $72,500 |
over $146,400 |
to |
$223,050 |
$28,457.50 + 28% of the amount over $146,400 |
over $223,050 |
to |
$398,350 |
$49,919.50 + 33% of the amount over $223,050 |
over $398,350 |
to |
$450,000 |
$107,768.50 + 35% of the amount over $398,350 |
over $450,000 |
$125,846 + 39.6% of the amount over $50,000 |
||
Single Returns |
|||
If taxable income is: |
Then, tax is: |
||
$0 |
to |
$8,925 |
10% of the amount over $0 |
over $8,925 |
to |
$36,250 |
$892.50 + 15% of the amount over $8,925 |
over $36,250 |
to |
$87,850 |
$4,991.25 + 25% of the amount over $36,250 |
over $87,850 |
to |
$183,250 |
$17,891.25 + 28% of the amount over $87,850 |
over $183,250 |
to |
$398,350 |
$44,603.25 + 33% of the amount over $183,250 |
over $398,350 |
to |
$400,000 |
$115,586.25 + 35% of the amount over $398,350 |
over $400,000 |
$116,163.75 + 39.6% of the amount over$400,000 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $24,000
15% of the amount over $0
over $24,000 to $58,150
$3,600 + 28% of the amount over $24,000
over $58,150 to $121,300
$13,162 + 31% of the amount over $58,150
over $121,300 to $263,750
$32,739 + 36% of the amount over $121,300
over $263,750
$84,021 + 39.6% of the amount over $263,750
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $32,150
15% of the amount over $0
over $32,150 to $83,050
$4,823 + 28% of the amount over $32,150
over $83,050 to $134,500
$19,075 + 31% of the amount over $83,050
over $134,500 to $263,750
$35,025 + 36% of the amount over $134,500
over $263,750
$81,555 + 39.6% of the amount over $263,750
Source: IRS Revenue Procedure 95-53.
Table 27. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions. Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1995
Personal Exemption:
$2,500
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s | ||
$0 |
to |
$12,750 |
10% of the amount over $0 |
over $12,750 |
to |
$48,600 |
$1,275 + 15% of the amount over $12,750 |
over $48,600 |
to |
$125,450 |
$6,652.50 + 25% of the amount over $48,600 |
over $125,450 |
to |
$203,150 |
$25,865 + 28% of the amount over $125,450 |
over $203,150 |
to |
$398,350 |
$47,621 + 33% of the amount over $203,150 |
over $398,350 |
to |
$425,000 |
$112,037 + 35% of the amount over $398,350 |
over $425,000 |
$121,364.50 + 39.6% of the amount over $425,000 |
Table 42. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2014
Personal Exemption |
$3,950 |
Standard Deduction: |
|
Joint |
$12,400 |
Single |
$6,200 |
Head of Household |
$9,100 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,200 |
Single/Head of Household |
$1,500 |
Limitation on Itemized Deductions: |
|
Joint |
$305,050 |
Head of Household |
$279,650 |
Single |
$254,200 |
Phaseout of personal exemption: |
Phaseout begins at the following adjusted gross incomes: |
Joint |
$305,050 |
Head of household |
$279,650 |
Single |
$254,200 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$125,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $39,000
15% of the amount over $0
over $39,000 to $94,250
$5,850 + 28% of the amount over $39,000
over $94,250 to $143,600
$21,320 + 31% of the amount over $94,250
over $143,600 to $256,500
$36,619 + 36% of the amount over $143,600
over $256,500
$77,263 + 39.6% of the amount over $256,500
Single Returns
| ||
$0 |
to |
$18,150 |
10% of the amount over $0 |
over $18,150 |
to |
$73,800 |
$1,815 + 15% of the amount over $18,1500 |
over $73,800 |
to |
$148,850 |
$10,162.50 + 25% of the amount over $73,800 |
over $148,850 |
to |
$226,850 |
$28,925 + 28% of the amount over $148,850 |
over $226,850 |
to |
$405,100 |
$50,765 + 33% of the amount over $226,850 |
over $405,100 |
to |
$457,600 |
$109,587.50 + 35% of the amount over $405,100 |
over $457,600 |
$127,962.50 + 39.6% of the amount over $457,600 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $23,350
15% of the amount over $0
over $23,350 to $56,550
$3,503 + 28% of the amount over $23,350
over $56,550 to $117,950
$12,799 + 31% of the amount over $56,550
over $117,950 to $256,500
$31,833 + 36% of the amount over $117,950
over $256,500
$81,711 + 39.6% of the amount over $256,500
Head-of-Household Returns
| ||
$0 |
to |
$9,075 |
10% of the amount over $0 |
over $9,075 |
to |
$36,900 |
$907.50 + 15% of the amount over $9,075 |
over $36,900 |
to |
$89,350 |
$5,081.25 + 25% of the amount over $36,900 |
over $89,350 |
to |
$186,350 |
$18,193.75 + 28% of the amount over $89,350 |
over $186,350 |
to |
$405,100 |
$45,353.75 + 33% of the amount over $186,350 |
over $405,100 |
to |
$406,750 |
$117,541.25 + 35% of the amount over $405,100 |
over $406,750 |
$118,118.75 + 39.6% of the amount over$406,750 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $31,250
15% of the amount over $0
over $31,250 to $80,750
$4,688 + 28% of the amount over $31,250
over $80,750 to $130,800
$18,548 + 31% of the amount over $80,750
Congressional Research Service
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $130,800 to $256,500
$34,063 + 36% of the amount over $130,800
over $256,500
$79,315 + 39.6% of the amount over $256,500
Source: IRS Revenue Procedure 94-72.
Table 28. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1994
Personal Exemption:
$2,450
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$167,700
Single
$111,800
Head of Household
$139,750
Standard Deduction:
Joint
$6,350
Single
$3,800
Head of Household
$5,600
Additional Standard Deductions for the Elderly or the Blind:
Joint
$750
Single/Head of Household
$950
Limitation on Itemized Deductions:
$111,800
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, casualty and theft losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1994
Joint Returns
| ||
$0 |
to |
$12,950 |
10% of the amount over $0 |
over $12,950 |
to |
$49,400 |
$1,295 + 15% of the amount over $12,950 |
over $49,400 |
to |
$127,550 |
$6,762.50 + 25% of the amount over $49,400 |
over $127,550 |
to |
$206,600 |
$26,300 + 28% of the amount over $127,550 |
over $206,600 |
to |
$405,100 |
$48,434 + 33% of the amount over $206,600 |
over $405,100 |
to |
$432,200 |
$113,939 + 35% of the amount over $405,100 |
over $432,200 |
$123,424 + 39.6% of the amount over $432,200 |
Table 44. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2015
Personal Exemption |
$4,000 |
Standard Deduction: |
|
Joint |
$12,600 |
Single |
$6,300 |
Head of Household |
$9,250 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,250 |
Single/Head of Household |
$1,550 |
Limitation on Itemized Deductions: |
Reduction in itemized deduction equal to the lesser of 3% of the excess of adjusted gross income above the following threshold amount, or 80% of the amount of itemized deductions otherwise allowable: |
Joint |
$309,900 |
Head of Household |
$284,050 |
Single |
$258,250 |
Phaseout of personal exemptions: |
Phaseout begins at the following adjusted gross incomes: |
Joint |
$309,900 |
Head of household |
$284,050 |
Single |
$258,250 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$125,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $38,000
15% of the amount over $0
over $38,000 to $91,850
$5,700 + 28% of the amount over $38,000
over $91,850 to $140,000
$20,778 + 31% of the amount over $91,850
over $140,000 to $250,000
$35,705 + 36% of the amount over $140,000
over $250,000
$75,305 + 39.6% of the amount over $250,000
Single Returns
| ||
$0 |
to |
$18,450 |
10% of the amount over $0 |
over $18,450 |
to |
$74,900 |
$1,815 + 15% of the amount over $18,4500 |
over $74,900 |
to |
$151,200 |
$10,162.50 + 25% of the amount over $74,900 |
over $151,200 |
to |
$230,450 |
$28,925 + 28% of the amount over $151,200 |
over $230,450 |
to |
$411,500 |
$50,765 + 33% of the amount over $230,450 |
over $411,500 |
to |
$464,850 |
$109,587.50 + 35% of the amount over $411,500 |
over $464,850 |
$127,962.50 + 39.6% of the amount over $464,850 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $22,750
15% of the amount over $0
over $22,750 to $55,100
$3,413 + 28% of the amount over $22,750
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $55,100 to $115,000
$12,471 + 31% of the amount over $55,100
over $115,000 to $250,000
$31,040 + 36% of the amount over $115,000
over $250,000
$79,640 + 39.6% of the amount over $250,000
Head-of-Household Returns
| ||
$0 |
to |
$9,225 |
10% of the amount over $0 |
over $9,225 |
to |
$37,450 |
$907.50 + 15% of the amount over $9,225 |
over $37,450 |
to |
$90,750 |
$5,081.25 + 25% of the amount over $37,450 |
over $90,750 |
to |
$189,300 |
$18,193.75 + 28% of the amount over $90,750 |
over $189,300 |
to |
$411,500 |
$45,353.75 + 33% of the amount over $189,300 |
over $411,500 |
to |
$413,200 |
$117,541.25 + 35% of the amount over $411,500 |
over $413,200 |
$118,118.75 + 39.6% of the amount over$413,200 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $30,500
15% of the amount over $0
over $30,500 to $78,700
$4,575 + 28% of the amount over $30,500
over $78,700 to $127,500
$18,071 + 31% of the amount over $78,750
over $127,500 to $250,000
$33,199 + 36% of the amount over $127,500
over $250,000
$77,299 + 39.6% of the amount over $250,000
Source: IRS Revenue Procedure 93-49.
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Table 29. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax
Rates, 1993
Personal Exemption:
$2,350
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$162,700
Single
$108,450
Head of Household
$135,600
Standard Deduction:
Joint
$6,200
Single
$3,700
Head of Household
$5,450
Additional Standard Deductions for the Elderly or the Blind:
Joint
$700
Single/Head of Household
$900
Limitation on Itemized Deductions:
$108,450
If an individual’s adjusted gross income (AGI) exceeded
(for al filers except married persons filing separately)
this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, theft and casualty losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1993
Joint Returns
| ||
$0 |
to |
$13,150 |
10% of the amount over $0 |
over $13,150 |
to |
$50,200 |
$1,295 + 15% of the amount over $13,150 |
over $50,200 |
to |
$129,600 |
$6,762.50 + 25% of the amount over $50,200 |
over $129,600 |
to |
$209,850 |
$26,300 + 28% of the amount over $129,600 |
over $209,850 |
to |
$411,500 |
$48,434 + 33% of the amount over $209,850 |
over $411,500 |
to |
$439,000 |
$113,939 + 35% of the amount over $411,500 |
over $439,000 |
$123,424 + 39.6% of the amount over $439,000 |
Table 46. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2016
Personal Exemption |
$4,050 |
Standard Deduction: |
|
Joint |
$12,600 |
Single |
$6,300 |
Head of Household |
$9,300 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,250 |
Single/Head of Household |
$1,550 |
Limitation on Itemized Deductions: |
Reduction in itemized deduction equal to the lesser of 3% of the excess of adjusted gross income above the following threshold amount, or 80% of the amount of itemized deductions otherwise allowable: |
Joint |
$311,300 |
Head of Household |
$285,350 |
Single |
$259,400 |
Phaseout of personal exemptions: |
Phaseout beings at the following adjusted gross incomes: |
Joint |
$311,300 |
Head of household |
2852,350 |
Single |
$259,400 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$125,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $36,900
15% of the amount over $0
over $36,900 to $89,150
$5,535 + 28% of the amount over $36,900
over $89,150 to $140,000
$20,165 + 31% of the amount over $89,150
over $140,000 to $250,000
$35,929 + 36% of the amount over $140,000
over $250,000
$75,529 + 39.6% of the amount over $250,000
Single Returns
If taxable income is:
Then, tax is:
$0 to $22,100
15% of the amount over $0
over $22,100 to $53,500
$3,315 + 28% of the amount over $22,100
over $53,500 to $115,000
$12,107 + 31% of the amount over $53,500
over $115,000 to $250,000
$31,172 + 36% of the amount over $115,000
over $250,000
$79,772 + 39.6% of the amount over $250,000
Congressional Research Service
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Head-of-Household Returns
| ||
$0 |
to |
$18,550 |
10% of the amount over $0 |
over $18,550 |
to |
$75,300 |
$1,815 + 15% of the amount over $18,550 |
over $75,300 |
to |
$151,900 |
$10,162.50 + 25% of the amount over $75,300 |
over $151,900 |
to |
$231,450 |
$28,925 + 28% of the amount over $151,900 |
over $231,450 |
to |
$413,350 |
$50,765 + 33% of the amount over $231,450 |
over $413,350 |
to |
$466,950 |
$109,587.50 + 35% of the amount over $413,350 |
over $466,950 |
$127,962.50 + 39.6% of the amount over $466,950 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $29,600
15% of the amount over $0
over $29,600 to $76,400
$4,440 + 28% of the amount over $29,600
over $76,400 to $127,500
$17,544 + 31% of the amount over $76,400
over $127,500 to $250,000
$33,385 + 36% of the amount over $127,500
over $250,000
$77,485 + 39.6% of the amount over $250,000
Source: IRS Revenue Procedure 92-102.
Table 30. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1992
Personal Exemption:
$2,300
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$157,900
Single
$105,250
Head of Household
$131,550
Standard Deduction:
Joint
$6,000
Single
$3,600
Head of Household
$5,250
Additional Standard Deductions for the Elderly or the Blind:
Joint
$700
Single/Head of Household
$900
Limitation on Itemized Deductions:
$105,250 (for al filers except married persons filing
separately)
If an individual’s adjusted gross income (AGI) exceeded this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions medical expenses, casualty and theft losses, and investment interest were exempt from the limitations.
Statutory Marginal Income Tax Rates, 1992
Joint Returns
| ||
$0 |
to |
$9,275 |
10% of the amount over $0 |
over $9,275 |
to |
$37,650 |
$907.50 + 15% of the amount over $9,275 |
over $37,650 |
to |
$91,150 |
$5,081.25 + 25% of the amount over $37,650 |
over $91,150 |
to |
$190,150 |
$18,193.75 + 28% of the amount over $91,150 |
over $190,150 |
to |
$413,350 |
$45,353.75 + 33% of the amount over $190,150 |
over $413,350 |
to |
$415,050 |
$117,541.25 + 35% of the amount over $413,350 |
over $415,050 |
$118,118.75 + 39.6% of the amount over$415,050 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $35,800
15% of the amount over $0
over $35,800 to $86,500
$5,370 + 28% of the amount over $35,800
over $86,500
$19,566 + 31% of the amount over $86,500
Congressional Research Service
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Single Returns
If taxable income is:
Then, tax is:
$0 to $21,450
15% of the amount over $0
over $21,450 to $51,900
$3,218 + 28% of the amount over $21,450
over $51,900
$11,744 + 31% of the amount over $51,900
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $28,750
15% of the amount over $0
over $28,750 to $74,150
$4,313 + 28% of the amount over $28,750
over $74,150
$17,235 + 31% of the amount over $74,150
Source: IRS Revenue Procedure 91-65.
Table 31. Personal Exemption, Standard Deduction, Limitation on Itemized
Deductions, Phaseout of Personal Exemption, and Statutory Marginal Tax Rates,
1991
Personal Exemption:
$2,150
Personal exemption began to phase out at a rate of 2%
for every $2,500 that a taxpayer’s adjusted gross income exceeded these amounts:
Joint
$150,000
Single
$100,000
Head of Household
$125,000
Standard Deduction:
Joint
$5,700
Single
$3,400
Head of Household
$5,000
Additional Standard Deductions for the Elderly or the Blind:
Joint
$650
Single/Head of Household
$850
Limitation on Itemized Deductions:
$100,000 (for al filers except married persons filing separately)
If an individual’s adjusted gross income exceeded this amount, the itemized deductions that could be claimed
had to be reduced by the lesser of al owable itemized deductions, or 3% of the difference between the taxpayer’s AGI and that amount. Deductions for medical expenses, casualty and theft losses, and investment interest were exempt from the limit.
Statutory Marginal Income Tax Rates, 1991
Joint Returns
If taxable income is:
Then, tax is:
$0 to $34,000
15% of the amount over $0
over $34,000 to $82,150
$5,100 + 28% of the amount over $34,000
Congressional Research Service
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link to page 51 link to page 51 Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
over $82,150
$18,582 + 31% of the amount over $82,150
Single Returns
| ||
$0 |
to |
$13,250 |
10% of the amount over $0 |
over $13,250 |
to |
$50,200 |
$1,295 + 15% of the amount over $13,250 |
over $50,200 |
to |
$130,150 |
$6,762.50 + 25% of the amount over $50,200 |
over $130,150 |
to |
$210,800 |
$26,300 + 28% of the amount over $130,150 |
over $210,800 |
to |
$413,350 |
$48,434 + 33% of the amount over $210,800 |
over $413,350 |
to |
$441,000 |
$113,939 + 35% of the amount over $413,350 |
over $441,000 |
$123,424 + 39.6% of the amount over $441,000 |
Table 48. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2017
Personal Exemption |
$4,050 |
Standard Deduction: |
|
Joint |
$12,700 |
Single |
$6,350 |
Head of Household |
$9,350 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,250 |
Single/Head of Household |
$1,550 |
Limitation on Itemized Deductions: |
Reduction in itemized deduction equal to the lesser of 3% of the excess of adjusted gross income above the following threshold amount, or 80% of the amount of itemized deductions otherwise allowable: |
Joint |
$313,800 |
Head of Household |
$287,650 |
Single |
$261,500 |
Phaseout of personal exemption: |
Phaseout begins at the following adjusted gross incomes: |
Joint |
$313,800 |
Head of household |
$287,650 |
Single |
$261,500 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$200,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $20,350
15% of the amount over $0
over $20,350 to $49,300
$3,052.50 + 28% of the amount over $20,350
over $49,300
$11,158.50 + 31% of the amount over $ 49,300
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $27,300
15% of the amount over $0
over $27,300 to $70,450
$4,095 + 28% of the amount over $27,300
over $70,450
$16,177 + 31% of the amount over $70,450
Source: IRS Revenue Procedure 90-64.
Table 32. Personal Exemption, Standard Deduction, and Statutory Marginal Tax
Rates, 1990
Personal Exemption:
$2,050
Standard Deduction:
Joint
$5,450
Single
$3,250
Head of Household
$4,750
Additional Standard Deductions for the Elderly or the Blind:
Joint
$650
Single/Head of Household
$800
Statutory Marginal Income Tax Rates, 1990
Joint Returns
| ||
$0 |
to |
$18,650 |
10% of the amount over $0 |
over $18,650 |
to |
$75,900 |
$1,865 + 15% of the amount over $18,650 |
over $75,900 |
to |
$153,100 |
$10,452.50 + 25% of the amount over $75,900 |
over $153,100 |
to |
$233,350 |
$29,752.50 + 28% of the amount over $153,100 |
over $233,350 |
to |
$416,700 |
$52,222.50 + 33% of the amount over $233,350 |
over $416,700 |
to |
$470,700 |
$112,728 + 35% of the amount over $416,700 |
over $470,700 |
$131,628 + 39.6% of the amount over $470,700 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $32,450
15% of the amount over $0
over $32,450 to $78,400
$3,867.50 + 28% of the amount over $32,450
over $78,400 to $185,730a
$17,733.50 + 33% of the amount over $78,400
over $185,730
$53,152.40 + 28% of the amount over $185,730
Single Returns
If taxable income is:
Then, tax is:
$0 to $19,450
15% of the amount over $0
over $19,450 to $47,050
$2,917.50 + 28% of the amount over $19,450
over $47,050 to $109,100a
$10,645.50 + 33% of the amount over $47,050
over $109,100
$31,122.00 + 28% of the amount over $109,100
Congressional Research Service
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link to page 51 link to page 52 link to page 52 Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
Head-of-Household Returns
| ||
$0 |
to |
$9,325 |
10% of the amount over $0 |
over $9,325 |
to |
$37,950 |
$932.50 + 15% of the amount over $9,325 |
over $37,950 |
to |
$91,900 |
$5,226.25 + 25% of the amount over $37,950 |
over $91,900 |
to |
$191,650 |
$18,713.75 + 28% of the amount over $91,900 |
over $191,650 |
to |
$416,700 |
$46,643.75 + 33% of the amount over $191,650 |
over $416,700 |
to |
$418,400 |
$120,910.25 + 35% of the amount over $416,700 |
over $418,400 |
$121,505.25 + 39.6% of the amount over $418,400 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $26,050
15% of the amount over $0
over $ 26,050 to $67,200
$3,907.50 + 28% of the amount over $26,050
over $67,200 to $157,890a
$15,429.50 + 33% of the amount over $67,200
over $157,890
$45,357.20 + 28% of the amount over $157,890
Source: IRS Revenue Procedure 90-7. a. Implicit tax bracket, generated by the “tax bubble,” as described in text. The bracket’s upper bound
depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
Table 33. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax
Rates, 1989
Personal Exemption:
$2,000
Standard Deduction:
Joint
$5,200
Single
$3,100
Head of Household
$4,550
Additional Standard Deduction for the Elderly or the Blind:
Joint
$600
Single/Head of Household
$750
Statutory Marginal Income Tax Rates, 1989
Joint Returns
If taxable income is:
Then, tax is:
$0 to $30,950
15% of the amount over $0
over $30,950 to $ 74,850
$4,642.50 + 28% of the amount over $30,950
over $ 74,850 to $177,720a
$16,934.50 + 33% of the amount over $74,850
over $177,720
$50,881.60 + 28% of the amount over $177,720
Single Returns
| ||
$0 |
to |
$13,350 |
10% of the amount over $0 |
over $13,350 |
to |
$50,800 |
$1,335 + 15% of the amount over $13,350 |
over $50,800 |
to |
$131,200 |
$6,952.50 + 25% of the amount over $50,800 |
over $131,200 |
to |
$212,500 |
$27,052.50 + 28% of the amount over $131,200 |
over $212,500 |
to |
$416,700 |
$49,816.50 + 33% of the amount over $212,500 |
over $416,700 |
to |
$444,550 |
$117,202.50 + 35% of the amount over $416,700 |
over $444,550 |
$126,950 + 39.6% of the amount over $444,550 |
Table 50. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2018
Personal Exemption (suspended through the end of 2025) |
$0 |
Standard Deduction: |
|
Joint |
$24,000 |
Single |
$12,000 |
Head of Household |
$18,000 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,300 |
Single/Head of Household |
$1,600 |
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
Phaseout of personal exemption: |
Suspended through the end of 2025 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$200,000 |
Joint Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $18,550
15% of the amount over $0
over $18,550 to $ 44,900
$2,782.50 + 28% of the amount over $18,550
over $44,900 to $104,300a
$10,160.50 + 33% of the amount over $44,900
over $104,300
$29,772.40 + 28% of the amount over $104,300
Head-of-Household Returns
If taxable income is:
Then, tax is:
$0 to $24,850
15% of the amount over $0
over $24,850 to $ 64,200
$ 3,727.50 + 28% of the amount over $ 24,850
over $64,200 to $151,210a
$14,745.50 + 33% of the amount over $ 64,200
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over $151,210
$43,458.80 + 28% of the amount over $151,210
Source: IRS Revenue Procedure 88-56. a. Implicit tax bracket, generated by the “tax bubble,” as described in text. The bracket’s upper bound
depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
Table 34. Personal Exemptions, Standard Deductions, and Statutory Marginal Tax
Rates, 1988
Personal Exemption:
$1,950
Standard Deduction:
Joint
$5,000
Single
$3,000
Head of Household
$4,400
Additional Standard Deduction for the Elderly or the Blind:
Joint
$600
Single/Head of Household
$750
Statutory Marginal Income Tax Rates, 1988
Joint Returns
| ||
$0 |
to |
$19,050 |
10% of the amount over $0 |
over $19,050 |
to |
$77,400 |
$1,905 + 12% of the amount over $19,050 |
over $77,400 |
to |
$165,000 |
$8,907 + 22% of the amount over $77,400 |
over $165,000 |
to |
$315,000 |
$28,179 + 24% of the amount over $165,000 |
over $315,000 |
to |
$400,000 |
$64,179 + 32% of the amount over $315,000 |
over $400,000 |
to |
$600,000 |
$91,379 + 35% of the amount over $400,000 |
over $600,000 |
$161,379 + 37% of the amount over $600,000 |
||
Single Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $29,750
15% of the amount over $0
over $29,750 to $71,900
$4,462.50 + 28% of the amount over $29,750
over $71,900 to $171,090a
$16,264.50 + 33% of the amount over $71,900
over $171,090
$47,905.20 + 28% of the amount over $171,090
Single Returns
If taxable income is:
Then, tax is:
$0 to $17,850
15% of the amount over $0
over $17,850 to $43,150
$2,677.50 + 28% of the amount over $17,850
over $43,150 to $100,480a
$9,761.50 + 33% of the amount over $43,150
over $100,480
$28,134.40 + 28% of the amount over $100,480
Head-of-Household Returns
| ||
$0 |
to |
$9,525 |
10% of the amount over $0 |
over $9,525 |
to |
$38,700 |
$952.50 + 12% of the amount over $9,525 |
over $38,700 |
to |
$82,500 |
$4,453.50 + 22% of the amount over $38,700 |
over $82,500 |
to |
$157,500 |
$14,089.50 + 24% of the amount over $82,500 |
over $157,500 |
to |
$200,000 |
$32,089.50 + 32% of the amount over $157,500 |
over $200,000 |
to |
$500,000 |
$45,689.50 + 35% of the amount over $200,000 |
over $500,000 |
$150,689.50 + 37% of the amount over $500,000 |
||
Head-of-Household Returns |
|||
If taxable income is: |
If taxable income is:
Then, tax is:
$0 to $23,900
15% of the amount over $0
over $23,900 to $61,650
$3,585 + 28% of the amount over $23,900
over $61,650 to $145,630a
$14,155 + 33% of the amount over $61,650
over $145,630
$40,776.40 + 28% of the amount over $145,630
Source: IRS Form 1040 Instructions, 1988. a. Implicit tax bracket, generated by the “tax bubble,” as described in text. The bracket’s upper bound
depends on the number of exemptions claimed by the taxpayer. The example in this table assumes one exemption for single returns, two for the other statuses.
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Appendix. Brief Summary of Major Legislation Affecting Individual Statutory Rates Since 1986
Tax Reform Act of 1986 The current federal individual income tax is largely a product of the Tax Reform Act of 1986 (TRA86; P.L. 99-514). Among the many changes it made to the federal tax code, TRA86 simplified the individual income tax rate structure for tax years beginning in 1988 by replacing the 14 statutory rates from the 1985 and 1986 tax years with two such rates: 15% and 28%. Table 34 shows key elements of the 1988 tax rate structure. These rates applied equal y to capital
income as wel as to labor income.
In addition, TRA86 established a 5% surcharge on the taxable income of certain upper-income
households. This surcharge effectively created a 33% statutory tax rate: a 28% statutory tax rate
plus a 5% surcharge.
Because the surcharge phased in over a certain range of income and then phased out as income
increased, statutory tax rates rose to 33% but then fel back to 28%, producing an income tax rate “bubble.” The purpose of the surcharge was two-fold: (1) to prevent TRA86 from changing the distribution of the income tax burden among income groups, relative to pre-1986 tax law, and (2)
to meet specific revenue targets.
More specifical y, the surcharge erased the tax savings from the 15% tax bracket and the personal exemption for upper-income households. For joint returns in 1988, the phaseout of the 15% tax rate started when taxable income exceeded $71,900 and ended when it reached $149,250. For single returns, the 15% tax bracket phased out between $47,050 and $97,620. For heads of
households, the phaseout occurred between $67,200 and $134,930.
The phaseout of the personal exemption started immediately after the phaseout of the 15% tax bracket and occurred sequential y for each exemption. This meant that the taxable income range
over which the 5% surcharge offset personal exemptions 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 $149,250 and $171,090 ($149,250 plus two times $10,920). On a joint return with four personal exemptions, the 5% surcharge would apply to taxable income between $149,250 and $192,930 ($149,250 plus four
times $10,920).
To il ustrate how the 5% surcharge worked to “phase out” the tax benefits of the 15% tax bracket, consider the following example based on a joint return for 1988. The difference between taxing
the first $29,750 of taxable income at 28% instead of 15% was $3,867.50 (obtained as $29,750 multiplied by 13%, the difference between 28% and 15%). Five percent of the difference between the upper and lower phaseout limits also equaled $3,867.50 ($149,250 less $71,900 multiplied by 5%). Hence, assessing the 5% surcharge on taxable income between $78,400 and $162,770 was
equivalent to taxing the first $32,450 of taxable income at 28% rather than 15%.
Omnibus Budget Reconciliation Act of 1990 The Omnibus Budget Reconciliation Act of 1990 (OBRA90, P.L. 99-514) added a third statutory
rate to the two rates from previous law. The rates were 15%, 28%, and 31% and applied to tax years beginning in 1991 and thereafter (see Table 31). OBRA90 eliminated the tax rate bubble created by TRA86, and replaced it with a limitation on itemized deductions (often referred to as
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Federal Individual Income Tax Brackets, Standard Deduction, and Personal Exemption
the Pease limitation) and a different method for phasing out the personal exemption for upper-
income households.
OBRA90 also reinstated separate tax rates for capital gains income. The act limited the tax on
capital gains income to a maximum of 28%, starting in 1991. TRA86 had taxed capital gains as
ordinary income, with a top effective rate of 33%.
OBRA90’s limitation on itemized deductions was based on a taxpayer’s adjusted gross income
(AGI). From 1991 to 1995, al owable deductions were reduced by 3% of the amount by which a taxpayer’s AGI exceeded $100,000 (or $50,000 in the case of married couples filing separate returns). For example, if a taxpayer’s AGI in 1991 was $110,000, then her itemized deductions were reduced by $300 ($110,000 less $100,000 multiplied by .03). This provision effectively raised the marginal tax rate for affected taxpayers by approximately one percentage point. A
dollar of income in excess of $100,000 was taxed as if it were $1.03, since in addition to the tax on an extra dollar of income, the taxpayer lost a tax deduction by giving up $0.03 of itemized
deductions.
This limitation was scheduled to expire after 1995 but was later extended. Al owable 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.
OBRA90 phased out the tax benefits from the personal exemption for higher-income households. Each personal exemption was phased out by a factor of 2% for each $2,500 (or fraction thereof) by which a taxpayer’s AGI exceeded a given threshold amount. In 1991, the threshold amounts were $150,000 for a joint return, $100,000 for a single return, and $125,000 for a head-of- household return. Starting in 1992, these amounts were indexed for inflation. The phaseout
provision was also scheduled to expire at the end of 1995.
A simple example can il ustrate how the personal exemption phaseout (PEP) increased affected
taxpayers’ tax burden. In 1991, a joint household whose AGI was $183,000 would have lost 28% of their total personal exemptions. The AGI amount in excess of the threshold in this instance would have been $33,000, or $183,000 (AGI) minus the $150,000 threshold limit. The $33,000 excess, divided by $2,500, would have produced a factor of 13.2, which would have been rounded up to 14. This figure, multiplied by 2%, would have resulted in the final disal owance rate of 28%. Hence, if the family had claimed two personal exemptions, which at $2,150 each
would have totaled $4,300, it would have been al owed to deduct $3,096 ($4,300 total personal
exemptions less the $1,204 disal owance, which is 28% of the total).
Omnibus Budget Reconciliation Act of 1993 The Omnibus Budget Reconciliation Act of 1993 (OBRA93, P.L. 103-66) made several changes in the individual marginal income tax rate structure. It added two new marginal tax rates: 36% and 39.6%. The 39.6% rate was the result of adding a 10% surtax to the 36% rate for taxpayers
with taxable incomes over $250,000 in 1993.
Although OBRA93 was enacted in August 1993, the new top two marginal rates were made effective retroactively to January 1, 1993. Affected taxpayers, however, were not assessed
penalties for underpayment of 1993 taxes resulting from the retroactive rate increase. Taxpayers
were also al owed to pay any additional 1993 taxes in three equal instal ments over two years.
OBRA93 delayed indexation of the new top income tax brackets for one year. Hence, the dollar
amounts for the 36% and 39.6% tax brackets remained the same in 1993 and 1994. Final y, OBRA93 made permanent both the Pease limitation and the PEP.
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Economic Growth and Tax Relief Reconciliation Act of 2001 The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA, P.L. 107-16) made
several major changes to the marginal tax rate structure. Many of the act’s provisions were set to phase in over several years, but subsequent legislation overrode the initial timeline. Al EGTRRA
provisions, as amended, were set to expire at the end of 2010.
First, the 2001 act created a new 10% bracket. It applied, beginning in 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. For tax year 2001, the act created a “rate reduction tax credit,” mimicking the effects of the 10% tax rate bracket for
most taxpayers.14 EGTRRA gradual y expanded the bracket from 2003 to 2007.
Second, the 2001 act gradual y reduced the top four marginal income tax rates. Under prior law, the top four marginal tax rates were 28%, 31%, 36%, and 39.6%. When its provisions were fully phased in, the 2001 act reduced the top four marginal income tax rates to 25%, 28%, 33%, and
35%. The reductions were scheduled to phase in between 2001 and 2006; subsequent legislation
accelerated their phase-in schedule.
Third, EGTRRA repealed the limitation on itemized deductions and personal exemptions for high-income taxpayers. The repeal was phased in between 2006 and 2009. The limitation was completely repealed in 2010 but was scheduled to be reinstated in 2011, when EGTRRA’s tax
cuts were due to expire.
Fourth, some of the act’s measures designed to reduce the marriage penalty affected the tax bracket structure. The act increased the income range of the 15% tax bracket for married couples filing joint returns to twice the income range of the 15% tax bracket for single returns. Under EGTRRA, this provision was scheduled to phase in from 2005 to 2008, but subsequent legislation
sped up the phase-in. Under EGTRRA, the upper dollar limit of the 15% tax bracket for joint returns was set at 180% of the upper dollar limit of the 15% tax bracket for single returns in 2005, 187% of that limit in 2006, 193% of that limit in 2007, and 200% of that limit in 2008 and
subsequent years.
Final y, the 2001 act increased the standard deduction for joint returns to twice the size of the standard deduction for single returns. Initial y, the increase was scheduled to be phased in between 2005 to 2009, but subsequent laws accelerated the process. This had the effect of raising
the lower income threshold of the lowest tax bracket for married taxpayers.
Jobs and Growth Tax Relief Reconciliation Act of 2003 The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA, P.L. 108-27) accelerated
several changes to the individual income tax rate structure made by EGTRRA. It moved forward to 2003 the tax rate reductions, the expansion of the 10% tax bracket, and the widening of the 15% tax bracket for joint returns to make it double the 15% tax bracket for single returns. Under
EGTRRA, some of these changes would not have been fully phased in until 2009.
JGTRRA also lowered the top tax rate for long-term capital gains and dividends to 15% and set a
rate of 0% for certain low-income taxpayers.
14 For more information see out-of-print CRS Report RS21171, The Rate Reduction Tax Credit - “The Tax Rebate” - in the Econom ic Growth and Tax Relief Reconciliation Act of 2001: A Brief Explanation , by Steven Maguire (available to | ||
$0 |
to |
$13,600 |
10% of the amount over $0 |
over $13,600 |
to |
$51,800 |
$1,360 + 12% of the amount over $13,600 |
over $51,800 |
to |
$82,500 |
$5,944 + 22% of the amount over $51,800 |
over $82,500 |
to |
$157,500 |
$12,698 + 24% of the amount over $82,500 |
over $157,500 |
to |
$200,000 |
$30,698 + 32% of the amount over $157,500 |
over $200,000 |
to |
$500,000 |
$44,298 + 35% of the amount over $200,000 |
over $500,000 |
$149,298 + 37% of the amount over $500,000 |
Table 52. Personal Exemptions, Standard Deductions, Limitation on Itemized Deductions, and the Personal Exemption Phaseout Thresholds, 2019
Personal Exemption (suspended for tax years 2018 through 2025) |
$0 |
Standard Deduction: (for tax years from 2018 through 2025) |
|
Joint |
$24,400 |
Single |
$12,200 |
Head of Household |
$18,350 |
Additional Standard Deduction for the Elderly or the Blind: |
|
Joint (each spouse) |
$1,300 |
Single/Head of Household |
$1,650 |
Limitation on Itemized Deductions: (suspended for tax years 2018 to 2025) |
|
Phaseout of personal exemption: |
Suspended for tax years 2018 to 2025 |
Tax on Net Investment Income: |
3.8% of the lesser of any excess of gross income from interest, dividends, annuities, royalties, rents, and net capital gains over allowable deductions for this income, or the amount of modified adjusted gross income above the following threshold amounts: |
Joint |
$250,000 |
Head of Household |
$200,000 |
Single |
$200,000 |
Joint Returns |
|||
If taxable income is: |
Then, tax is: |
||
$0 |
to |
$19,400 |
10% of the amount over $0 |
over $19,400 |
to |
$78,950 |
$1,940 + 12% of the amount over $19,400 |
over $78,950 |
To |
$168,400 |
$9,086 + 22% of the amount over $78,950 |
over $168,400 |
to |
$321,450 |
$28,675 + 24% of the amount over $168,400 |
over $321,450 |
to |
$408,200 |
$65497 + 32% of the amount over $321,450 |
over $408,200 |
to |
$612,350 |
$93,257 + 35% of the amount over $408,200 |
over $612,350 |
$164,709.50 + 37% of the amount over $4612,350 |
||
Single Returns |
|||
If taxable income is: |
Then, tax is: |
||
$0 |
to |
$9,700 |
10% of the amount over $0 |
over $9,700 |
to |
$39,475 |
$970 + 12% of the amount over $9,700 |
over $39,475 |
to |
$84,200 |
$4543 + 22% of the amount over $39,475 |
over $84,200 |
to |
$160,725 |
$14,382.50 + 24% of the amount over $84,200 |
over $160,725 |
to |
$204,100 |
$32,748.50 + 32% of the amount over $160,725 |
over $204,100 |
to |
$510,300 |
$46,628.50 + 35% of the amount over $204,100 |
over $510,300 |
$153,798.50 + 37% of the amount over $510,300 |
||
Head-of-Household Returns |
|||
If taxable income is: |
Then, tax is: |
||
$0 |
to |
$13,850 |
10% of the amount over $0 |
over $13,850 |
to |
$52,850 |
$1,385 + 12% of the amount over $13,850 |
over $52,850 |
to |
$84,200 |
$6,065 + 22% of the amount over $52,850 |
over $84,200 |
to |
$160,700 |
$12,962 + 24% of the amount over $84,200 |
over $160,700 |
to |
$204,100 |
$31,322 + 32% of the amount over $160,700 |
over $204,100 |
to |
$510,300 |
$45,210 + 35% of the amount over $204,100 |
over $510,300 |
$152,380 + 37% of the amount over $510,300 |
Author Contact Information
1. |
Congressional Budget Office, Effective Marginal Tax Rates on Labor Income, p. 3. |
2. |
For an example of such analysis, see S. D. Holt and J. L. Romich, (2007), "Marginal Tax Rates Facing Low- and Moderate-Income Workers Who Participate in Means-Tested Transfer Programs," National Tax Journal, vol. 60, no. 2, June 2007, p. 253. |
3. |
For more details, see out-of-print CRS Report R41111, Expiration and Extension of the Individual Income Tax Cuts First Enacted in 2001 and 2003: Background and Analysis, by James M. Bickley (available to congressional clients upon request). |
4. |
For more information see out-of-print CRS Report RS21171, The Rate Reduction Tax Credit - "The Tax Rebate" - in the Economic Growth and Tax Relief Reconciliation Act of 2001: A Brief Explanation, by Steven Maguire (available to congressional clients upon request). |
5. |
As a result of the adjustment, the effective individual tax rates for qualified passthrough business income are 8.0%, 9.6%, 17.6%, 19.2%, 25.6%, 28.0%, and 29.6% for the 2018 to 2025 tax years. |
6. |
In 2017, the standard deduction was $12,700 for joint filers, $9,350 for head-of-household filers, and $6,350 for single filers. |
7. |
|
8. |
U.S. Congress, Joint Committee on Taxation, General Explanation of the Economic Recovery Tax Act of 1981, JCS-71-81, December 31, 1981, as redistributed by CCH Internet Tax Research NetWork. |
9. |
James C. Young, "Inflation Adjustments Affecting Private Individual Taxpayers in 2017," Tax Notes, October 10, 2016, p. 252. |
10. |
U.S. Congress, Joint Committee on Taxation, General Explanation of Public Law 115-97, JCS-1-18 (Washington: GPO, 2018), p. 434. |
11. |
For more information please see out-of-print CRS Report R40561, Interactions Between the Social Security COLA and Medicare Part B Premiums, by Jim Hahn (available to congressional clients upon request). |