This report tracks changes in federal individual income tax brackets, the standard deduction, and the personal exemption since 1988. All three tax items have been indexed for inflation since 1981, though the personal exemption is not currently in effect. The report also explains how tax provisions are adjusted for inflation. The table below, which also includes the new temporary senior deduction, shows the levels that are to apply in 2026.
Current statutory tax rates have evolved from the Tax Reform Act of 1986 (TRA86; P.L. 99-514) and several tax laws enacted since then. Of particular importance have been 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); the tax rate changes in the 2017 tax revision (P.L. 115-97), also known as the Tax Cuts and Jobs Act; and the FY2025 reconciliation law (P.L. 119-21), also known as the One Big Beautiful Bill Act.
Seven statutory individual income tax rates have been in effect since 2018: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each rate applies to a different range of income, and that range constitutes a tax bracket. A taxpayer's tax liability is the sum total of the tax from each of the tax brackets their taxable income covers. This means that someone's average tax rate (i.e., total tax owed divided by total income) is less than their top marginal tax rate (i.e., the tax on an additional dollar of income). For example, if the federal income tax had no deductions, exemptions, exclusions, and credits, and Mary has a taxable income of $20,000 and half of that amount is taxed at 10% and half at 15%, her tax liability would equal ($10,000 × 0.10) + ($10,000 × 0.15), or $2,500. Mary's average tax rate would be 12.5% ($2,500 divided by $20,000), while her top marginal rate would be 15%. (This is an intentionally simplified example and is not intended to represent the current tax code.)
Over 50 federal income tax provisions are indexed for inflation. These include the tax brackets and the standard deduction. Indexation reduces the risk of bracket creep, which happens when someone's tax liability increases because of a larger increase in that taxpayer's nominal income than their real income. Until 2018, indexation of these items was based on annual changes in the Consumer Price Index for All Urban Consumers (CPI-U). Under P.L. 115-97, Congress permanently switched the inflation adjustment to the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), starting in 2018. Some believe that the latter index provides a more accurate measure of inflation among consumer goods and services than the CPI-U. A sole provision in the table below, the temporary senior deduction, is not indexed to inflation.
Personal Exemption, Standard Deductions, Temporary Senior Deduction, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2026
|
Personal Exemption: |
$0 (Permanently repealed under current law) |
|
Standard Deduction: |
|
|
Joint |
$32,200 |
|
Single |
$16,100 |
|
Head of Household |
$24,150 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Individual |
$1,650 |
|
Individual who is unmarried and not a surviving spouse |
$2,050 |
|
Temporary Senior Deduction (2025-2028): |
|
|
Individual age 65 or older |
$6,000 per qualifying individual |
|
Limitation on Itemized Deductions: |
Itemized deductions are reduced by 2/37ths of the lesser of |
|
Statutory Marginal Income Tax Rates, 2026 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $24,800 |
10% of the amount over $0 |
|
over $24,800 to $100,800 |
$2,480 + 12% of the amount over $24,800 |
|
over $100,800 to $211,400 |
$11,600 + 22% of the amount over $100,800 |
|
over $211,400 to $403,550 |
$35,932 + 24% of the amount over $211,400 |
|
over $403,550 to $512,450 |
$82,048 + 32% of the amount over $403,550 |
|
over $512,450 to $768,700 |
$116,896 + 35% of the amount over $512,450 |
|
over $768,700 |
$206,583.50 + 37% of the amount over $768,700 |
|
Single Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $12,400 |
10% of the amount over $0 |
|
over $12,400 to $50,400 |
$1,240 + 12% of the amount over $12,400 |
|
over $50,400 to $105,700 |
$5,800 + 22% of the amount over $50,400 |
|
over $105,700 to $201,775 |
$17,966 + 24% of the amount over $105,700 |
|
over $201,775 to $256,225 |
$41,024 + 32% of the amount over $201,775 |
|
over $256,225 to $640,600 |
$58,448 + 35% of the amount over $256,225 |
|
over $640,600 |
$192,979.25 + 37% of the amount over $640,600 |
|
Head-of-Household Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $17,700 |
10% of the amount over $0 |
|
over $17,700 to $67,450 |
$1,770 + 12% of the amount over $17,700 |
|
over $67,450 to $105,700 |
$7,740 + 22% of the amount over $67,450 |
|
over $105,700 to $201,750 |
$16,155 + 24% of the amount over $105,700 |
|
over $201,750 to $256,200 |
$39,207 + 32% of the amount over $201,750 |
|
over $256,200 to $640,600 |
$56,631 + 35% of the amount over $256,200 |
|
over $640,600 |
$191,171 + 37% of the amount over $640,600 |
Source: IRS Revenue Procedure 2025-32 and P.L. 119-21.
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 wages, pass-through business profits, long-term capital gains, and dividends) less certain exclusions, exemptions, and deductions. An individual 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 the taxpayer's itemized deductions, whichever amount is greater.
In 2023, approximately 89.2% of taxpayers (generally low- and middle-income taxpayers) claimed the standard deduction, while 9.4% (generally high-income taxpayers) claimed itemized deductions.3 Certain other deductions may be claimed by both itemizers and taxpayers claiming the standard deduction. Taxpayers who own a pass-through business (i.e., partnership, 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. Other temporary deductions of this type enacted in the FY2025 reconciliation law (P.L. 119-21; also known as the One Big Beautiful Bill Act) include the senior deduction (for individuals age 65 or older) and the deductions for tip income, overtime pay, and car loan interest.4 Taxpayers who are not itemizing their deductions may also use the charitable giving deduction for nonitemizers and/or additional standard deduction amounts for the elderly and blind to further reduce their taxable incomes.
The appropriate marginal tax rates are then applied to an individual's taxable income to determine their income tax liability. A taxpayer may face additional tax liability if they are subject to the alternative minimum tax.5 The tax owed may be reduced by any credits (e.g., earned income tax credit and child tax credit) a taxpayer is allowed to claim.
This report provides a brief overview of the role these tax items play in calculating 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 and qualified dividends. The report also considers the rationale for indexing these elements for inflation and the current mechanism for doing so. It concludes with a year-by-year summary from 1988 to 2026 of the personal exemption and limitations on it, the standard deduction and limitations on itemized deductions, and statutory tax rates and brackets, through a series of tables. The tables for 2025 and 2026 also include the temporary senior deduction in place through the end of 2028.
An Appendix summarizes the federal tax laws (going back to P.L. 99-514) that introduced the changes in the tax elements examined here. The current federal income tax is a product of the Tax Reform Act of 1986 and changes in tax law enacted since then.
At the core of the federal individual income tax are the tax brackets. A bracket refers to an income tax rate and the range of taxable income to which the rate applies. All taxable income within a bracket is taxed at that rate. A taxpayer's tax liability before credits is the sum total of the tax within each bracket that applies to their taxable income. For example, assume that a single filer has a taxable income of $20,000 and that half that amount is taxed at 10% while the other half is taxed at 15%. (This is an intentionally simplified example and is not intended to represent the current tax code.) The taxpayer's tax liability is $2,500: [($10,000 x 0.1) + ($10,000 x 0.15) = ($1,000 + $1,500) = $2,500]. Consequently, the taxpayer's average tax rate (12.5%) is lower than their top marginal rate (15%).6 Tax brackets are adjusted for inflation each year, and individual income tax rates are progressive, which means that marginal rates increase as a taxpayer's income goes up.
Before 2018, each taxpayer was allowed to reduce their gross income by a fixed amount (known as an exemption) for herself or himself, a spouse, and all qualified dependents. The amount of the exemption was the same for every individual and was indexed for inflation. In 2017, the amount was $4,050 per person. The personal exemption was temporarily suspended from 2018 through 2025, and then was permanently suspended under the FY2025 reconciliation law. For all but three years (2010-2012) from 1991 to 2017, the exemption was phased out for taxpayers with incomes above a threshold amount.
In computing taxable income, individuals are allowed to reduce their AGI by either the standard deduction or the sum of their itemized deductions, whichever amount is larger. The standard deduction varies by filing status and is indexed for inflation. In 2026, the standard deduction is $16,100 for single filers and married persons filing separately, $24,150 for a head of household, and $32,200 for a married couple filing jointly or for a surviving spouse.
Taxpayers who are 65 or older ("elderly") and/or blind are eligible for an additional standard deduction. In 2026, that amount is $1,650 for each spouse for joint filers and $2,050 for a single filer or head of household. Taxpayers who are both elderly and blind may claim the deduction twice. In addition, for tax years 2025 through 2028, taxpayers age 65 and over may claim a deduction of $6,000 per senior. The deduction may be claimed by itemizers and nonitemizers alike.
Instead of taking the standard deduction, a taxpayer may itemize certain deductions. In 2026, these deductions include up to $40,400 for a combination of state and local property taxes and state and local sales or income taxes paid;7 home mortgage interest paid on mortgage debt of $750,000 or less;8 eligible charitable contributions above 0.5% of AGI; certain investment interest; medical expenses above 7.5% of a taxpayer's AGI; and casualty losses related to federally declared and certain state-declared disasters in excess of both 10% of AGI and $100 per loss.9 Before 2018, taxpayers were also allowed a deduction for miscellaneous itemized expenses (e.g., certain job-related expenses not paid by an employer) above 2% of AGI, but P.L. 115-97 suspended the deduction from 2018 through 2025, and the FY2025 reconciliation law eliminated it permanently beginning in 2026. Like the personal exemption, the total amount allowed for itemized deductions began to phase out from 1991 to 2017 (except in 2010-2012) for higher-income taxpayers with income above a threshold amount, which varied by filing status.
Tax brackets, the personal exemption (which has been unavailable since 2018), and the standard deduction have been indexed for inflation since 1981. Without indexing, taxpayers could find themselves in a higher tax bracket not because their real income has increased, but because of inflation; indexing prevents such "bracket creep" (discussed further below). Indexation was done with the Consumer Price Index for Urban Consumers (CPI-U) until 2018. Since then, the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) has been used to make inflation adjustments. Some maintain 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.10
During periods of rising or relatively high inflation, an income tax based on tax brackets measured only in current (or nominal) dollars could lead to unintended tax increases. This can happen when nominal incomes rise faster than real incomes, pushing taxpayers into a higher tax bracket through a process known as bracket creep. The process can result in higher individual income tax burdens than lawmakers may have intended when they established the statutory rates.
The effects of inflation on income tax liabilities can be considerable, even in periods of low inflation. For example, $1,000 in 1988 had the same buying power as $2,726 in 2025, using the CPI-U to adjust for inflation.11 Year-to-year changes in general price levels did not exceed 3.4% between 1992 and 2020. But substantial rises in the U.S. inflation rate in 2021 and 2022 led to a 7.0% increase in the income ranges for each tax bracket in 2023 (relative to 2022) and a 5.5% increase in 2024 (relative to 2023). Inflation has moderated since then,12 and the FY2025 reconciliation law provided additional increases (beyond the rate of inflation) to the standard deduction, the amount of income taxed at the 10% bracket, and the amount taxed at the 12% bracket.13
Congress added indexation to the federal income tax as a part of a package of statutory tax rate reductions included in the Economic Recovery Tax Act of 1981. The relatively high U.S. inflation rate then influenced congressional deliberations on the benefits of tax indexation.14 As the Joint Committee on Taxation noted in its explanation of the act, "The Congress believed that '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."15
For tax years before 2018, the inflation adjustment reflected the percentage by which the average 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 indexed tax items used the same base period.
Since 2018, a different price index has been used to adjust income tax items for inflation. Under P.L. 115-97, the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) permanently replaced the CPI-U for this purpose. (As noted above, certain tax items—including the standard deduction, the 10% bracket, and the 12% bracket—increased by more than the rate of inflation from 2024 to 2026.)
Some analysts argued that the CPI-U overstated increases in the cost of living because it did not account for changes consumers make in their buying patterns when the prices of some items move up or down more than the prices of other items. In these analysts' view, not accounting for this substitution effect tended to overstate the impact of inflation on consumers' real incomes.
The C-CPI-U may be better at capturing changes in consumer spending patterns in response to price changes.16 The index compares details about what a consumer bought in the period before a price change with details about what the consumer buys in the period after the change. Using 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 demand changes from month to month and tracks shifts in consumer buying patterns over time and among basket items.
Because the C-CPI-U accounts for the tendency of consumers to respond to changes in relative prices by making substitutions, it produces lower estimates of the rate of increase in the cost of living over time than the CPI-U does. From December 2015 to December 2025, for example, the C-CPI-U rose 33%, while the CPI-U rose 37%.
Using the C-CPI-U to adjust income tax items for inflation could cause greater bracket creep than the CPI-U would. Because the C-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. In this case, more taxpayers would be at risk of moving into higher tax brackets than they would under the CPI-U, assuming their taxable income increases faster than the C-CPI-U. Accelerated bracket creep would result in an increase in federal tax revenue over time, all other things being equal. The Joint Committee on Taxation estimated that the revenue gain from switching to the C-CPI-U would total $134 billion from FY2018 to FY2027.17
Since 1981, when Congress first authorized indexing of various individual income tax items for inflation, the list of indexed elements has expanded and now encompasses more than 50 tax items. Not all of the items pertain to individuals, and not all elements of the individual income tax are indexed for inflation.
The following tables present the personal exemption and phaseout threshold amounts, standard deductions, limitations on itemized deductions, and statutory marginal tax rates schedules for each tax year from 2026 back to 1988. Table 1 and Table 2 also include information on the temporary senior deduction for individuals age 65 and older; under current law, that deduction applies to tax years 2025-2028. A tax year represents the year for which a given tax obligation is incurred, which (for individuals) differs from the year in which taxes are filed. For example, the information presented in Table 2 applies to tax year 2025, for which taxes were filed in early 2026; similarly, Table 1 applies to tax year 2026, but could be described as applying to filing year 2027.
Table 1. Personal Exemption, Standard Deductions, Temporary Senior Deduction, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2026
Source: IRS Revenue Procedure 2025-32 and P.L. 119-21.
Table 2. Personal Exemption, Standard Deductions, Temporary Senior Deduction, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2025
|
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
|
Standard Deduction: |
|
|
Joint |
$31,500 |
|
Single |
$15,750 |
|
Head of Household |
$23,625 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Individual |
$1,600 |
|
Individual who is unmarried and not a surviving spouse |
$2,000 |
|
Temporary Senior Deduction (2025 to 2028): |
|
|
Individual age 65 or older: |
$6,000 per qualifying individual |
|
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
|
Statutory Marginal Income Tax Rates, 2025 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $23,850 |
10% of the amount over $0 |
|
over $23,850 to $96,950 |
$2,385 + 12% of the amount over $23,850 |
|
over $96,950 to $206,700 |
$11,157 + 22% of the amount over $96,950 |
|
over $206,700 to $394,600 |
$35,302 + 24% of the amount over $206,700 |
|
over $394,600 to $501,050 |
$80,398 + 32% of the amount over $394,600 |
|
over $501,050 to $751,600 |
$114,162 + 35% of the amount over $501,050 |
|
over $751,600 |
$202,154.50 + 37% of the amount over $751,600 |
|
Single Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $11,925 |
10% of the amount over $0 |
|
over $11,925 to $48,475 |
$1,192.50 + 12% of the amount over $11,925 |
|
over $48,475 to $103,350 |
$5,578.50 + 22% of the amount over $48,475 |
|
over $103,350 to $197,300 |
$17,651 + 24% of the amount over $103,350 |
|
over $197,300 to $250,525 |
$40,199 + 32% of the amount over $197,300 |
|
over $250,525 to $626,350 |
$57,231 + 35% of the amount over $250,525 |
|
over $626,350 |
$188,769.75 + 37% of the amount over $626,350 |
|
Head-of-Household Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $17,000 |
10% of the amount over $0 |
|
over $17,000 to $64,850 |
$1,700 + 12% of the amount over $17,000 |
|
over $64,850 to $103,350 |
$7,442 + 22% of the amount over $64,850 |
|
over $103,350 to $197,300 |
$15,912 + 24% of the amount over $103,350 |
|
over $197,300 to $250,500 |
$38,460 + 32% of the amount over $197,300 |
|
over $250,500 to $626,350 |
$55,484 + 35% of the amount over $250,500 |
|
over $626,350 |
$187,031.50 + 37% of the amount over $626,350 |
Source: IRS Revenue Procedure 2024-40, IRS Revenue Procedure 2025-32, and P.L. 119-21.
Table 3. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2024
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
Standard Deduction: |
|
|
Joint |
$29,200 |
|
Single |
$14,600 |
|
Head of Household |
$21,900 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Individual |
$1,550 |
|
Individual who is unmarried and not a surviving spouse |
$1,950 |
|
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
|
Statutory Marginal Income Tax Rates, 2024 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $23,200 |
10% of the amount over $0 |
|
over $23,200 to $94,300 |
$2,320 + 12% of the amount over $23,200 |
|
over $94,300 to $201,050 |
$10,852 + 22% of the amount over $94,300 |
|
over $201,050 to $383,900 |
$34,337 + 24% of the amount over $201,050 |
|
over $383,900 to $487,450 |
$78,221 + 32% of the amount over $383,900 |
|
over $487,450 to $731,200 |
$111,357 + 35% of the amount over $487,450 |
|
over $731,200 |
$196,669.50 + 37% of the amount over $731,200 |
|
Single Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $11,600 |
10% of the amount over $0 |
|
over $11,600 to $47,150 |
$1,160 + 12% of the amount over $11,600 |
|
over $47,150 to $100,525 |
$5,426 + 22% of the amount over $47,150 |
|
over $100,525 to $191,950 |
$17,168.50 + 24% of the amount over $100,525 |
|
over $191,950 to $243,725 |
$39,110.50 + 32% of the amount over $191,950 |
|
over $243,725 to $609,350 |
$55,678.50 + 35% of the amount over $243,725 |
|
over $609,350 |
$183,647.25 + 37% of the amount over $609,350 |
|
Head-of-Household Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $16,550 |
10% of the amount over $0 |
|
over $16,550 to $63,100 |
$1,655 + 12% of the amount over $16,550 |
|
over $63,100 to $100,500 |
$7,241 + 22% of the amount over $63,100 |
|
over $100,500 to $191,950 |
$15,469 + 24% of the amount over $100,500 |
|
over $191,950 to $243,700 |
$37,417 + 32% of the amount over $191,950 |
|
over $243,700 to $609,350 |
$53,997 + 35% of the amount over $243,700 |
|
over $609,350 |
$181,954.50 + 37% of the amount over $609,350 |
Source: IRS Revenue Procedure 2023-34 and P.L. 119-21.
Table 4. Personal Exemption, Standard Deductions, Limitations on Itemized Deductions, and Statutory Marginal Tax Rates, 2023
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
Standard Deduction: |
|
|
Joint |
$27,700 |
|
Single |
$13,850 |
|
Head of Household |
$20,800 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Individual |
$1,500 |
|
Individual who is unmarried and not a surviving spouse |
$1,850 |
|
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
|
Statutory Marginal Income Tax Rates, 2023 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $22,000 |
10% of the amount over $0 |
|
over $22,000 to $89,450 |
$2,200 + 12% of the amount over $22,000 |
|
over $89,450 to $190,750 |
$10,294 + 22% of the amount over $89,450 |
|
over $190,750 to $364,200 |
$32,580 + 24% of the amount over $190,750 |
|
over $364,200 to $462,500 |
$74,208 + 32% of the amount over $364,200 |
|
over $462,500 to $693,750 |
$105,664 + 35% of the amount over $462,500 |
|
over $693,750 |
$186,601 + 37% of the amount over $693,750 |
|
Single Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $11,000 |
10% of the amount over $0 |
|
over $11,000 to $44,725 |
$1,100 + 12% of the amount over $11,000 |
|
over $44,725 to $95,375 |
$5,147 + 22% of the amount over $44,725 |
|
over $95,375 to $182,100 |
$16,290 + 24% of the amount over $95,375 |
|
over $182,100 to $231,250 |
$37,104 + 32% of the amount over $182,100 |
|
over $231,250 to $578,125 |
$52,832 + 35% of the amount over $231,250 |
|
over $578,125 |
$174,238.25 + 37% of the amount over $578,125 |
|
Head-of-Household Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $15,700 |
10% of the amount over $0 |
|
over $15,700 to $59,850 |
$1,570 + 12% of the amount over $15,700 |
|
over $59,850 to $95,350 |
$6,868 + 22% of the amount over $59,850 |
|
over $95,350 to $182,100 |
$14,678 + 24% of the amount over $95,350 |
|
over $182,100 to $231,250 |
$35,498 + 32% of the amount over $182,100 |
|
over $231,250 to $578,100 |
$51,226 + 35% of the amount over $231,250 |
|
over $578,100 |
$172,623 + 37% of the amount over $578,100 |
Source: IRS Revenue Procedure 2022-38 and P.L. 119-21.
Table 5. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2022
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
Standard Deduction: |
|
|
Joint |
$25,900 |
|
Single |
$12,950 |
|
Head of Household |
$19,400 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Joint (each spouse) |
$1,400 |
|
Single/Head of Household |
$1,750 |
|
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
|
Statutory Marginal Income Tax Rates, 2022 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $20,550 |
10% of the amount over $0 |
|
over $20,550 to $83,550 |
$2,055 + 12% of the amount over $20,550 |
|
over $83,550 to $178,150 |
$9,615 + 22% of the amount over $83,550 |
|
over $178,150 to $340,100 |
$30,427 + 24% of the amount over $178,150 |
|
over $340,100 to $431,900 |
$69,295 + 32% of the amount over $340,100 |
|
over $431,900 to $647,850 |
$98,671 + 35% of the amount over $431,900 |
|
over $647,850 |
$174,253.50 + 37% of the amount over $647,850 |
|
Single Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $10,275 |
10% of the amount over $0 |
|
over $10,275 to $41,775 |
$1,027.50 + 12% of the amount over $10,275 |
|
over $41,775 to $89,075 |
$4,807.50 + 22% of the amount over $41,775 |
|
over $89,075 to $170,050 |
$15,213.50 + 24% of the amount over $89,075 |
|
over $170,050 to $215,950 |
$34,647.50 + 32% of the amount over $170,050 |
|
over $215,950 to $539,900 |
$49,335.50 + 35% of the amount over $215,950 |
|
over $539,900 |
$162,718 + 37% of the amount over $539,900 |
|
Head-of-Household Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $14,650 |
10% of the amount over $0 |
|
over $14,650 to $55,900 |
$1,465 + 12% of the amount over $14,650 |
|
over $55,900 to $89,050 |
$6,415 + 22% of the amount over $55,900 |
|
over $89,050 to $170,050 |
$13,708 + 24% of the amount over $89,050 |
|
over $170,050 to $215,950 |
$33,148 + 32% of the amount over $170,050 |
|
over $215,950 to $539,900 |
$47,836 + 35% of the amount over $215,950 |
|
over $539,900 |
$161,218.50 + 37% of the amount over $539,900 |
Source: IRS Revenue Procedure 2021-45 and P.L. 119-21.
Table 6. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2021
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
||
|
Standard Deduction: |
|||
|
Joint |
$25,100 |
||
|
Single |
$12,550 |
||
|
Head of Household |
$18,800 |
||
|
Additional Standard Deduction for the Elderly or the Blind: |
|||
|
Joint (each spouse) |
$1,350 |
||
|
Single/Head of Household |
$1,700 |
||
|
Limitation on Itemized Deductions: |
Suspended through the end of 2025 |
||
|
Joint Returns |
|||
|
If taxable income is: |
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 $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 |
||
|
Head-of-Household Returns |
|||
|
If taxable income is: |
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 and P.L. 119-21.
Table 7. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2020
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
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 |
|
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 |
$13,158 + 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 and P.L. 119-21.
Table 8. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2019
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
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 |
|
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 |
$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 |
|
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 |
Source: IRS Revenue Procedure 2018-57 and P.L. 119-21.
Table 9. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, and Statutory Marginal Tax Rates, 2018
|
Personal Exemption: |
$0 (Suspended through 2025; permanently repealed starting in 2026) |
|
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 |
|
Joint Returns |
|
|
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 |
|
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 |
|
|
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 |
|
|
If taxable income is: |
Then, tax is: |
|
$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 |
Source: IRS Revenue Procedure: 2018-18 and P.L. 119-21.
Table 10. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2017
|
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 |
$313,800 |
|
Single |
$261,500 |
|
Head of Household |
$287,650 |
|
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: 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 allowable 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 |
$313,800 |
|
Head of Household |
$287,650 |
|
Single |
$261,500 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
Table 11. Personal Exemption, 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 |
$285,350 |
|
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 allowable 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 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
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: |
Then, tax is: |
|
$0 to $13,250 |
10% of the amount over $0 |
|
over $13,250 to $50,200 |
$1,325 + 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 12. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2015
|
Personal Exemption: |
$4,000 |
|
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 |
$309,900 |
|
Single |
$258,250 |
|
Head of Household |
$284,050 |
|
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: 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 allowable 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 |
$309,900 |
|
Single |
$258,250 |
|
Head of Household |
$284,050 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
If taxable income is: |
Then, tax is: |
|
$0 to $13,150 |
10% of the amount over $0 |
|
over $13,150 to $50,200 |
$1,315+ 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 13. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2014
|
Personal Exemption: |
$3,950 |
|
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 |
$305,050 |
|
Head of household |
$279,650 |
|
Single |
$254,200 |
|
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: 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 allowable 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 |
$305,050 |
|
Single |
$254,200 |
|
Head of Household |
$279,650 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
|
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 14. Personal Exemption, 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 allowable 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 |
|
Joint Returns |
|
|
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 |
|
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: |
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 |
Table 15. Personal Exemption, 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 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
Table 16. Personal Exemption, 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 |
|
Limitation on itemized deductions: |
Ended on Dec. 31, 2009 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
If taxable income is: |
Then, tax is: |
|
$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 17. Personal Exemption, Standard Deductions, Limitation on Itemized Deductions, Personal Exemption Phaseout Thresholds, and Statutory Marginal Tax Rates, 2010
|
Personal Exemption: |
$3,650 |
|
Phaseout of personal exemption: |
Ended on Dec. 31, 2009 |
|
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: |
Ended on Dec. 31, 2009 |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
Table 18. Personal Exemption, 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 |
|
Standard Deduction: |
|
|
Joint |
$11,400 |
|
Single |
$5,700 |
|
Head of Household |
$8,350 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Joint (each spouse) |
$1,100 |
|
Single/Head of Household |
$1,400 |
|
Limitation on itemized deductions: For persons whose adjusted gross income (AGI) exceeded the amount shown in the right column, the itemized deductions they could claim had to be reduced by the lesser of 80% of allowable 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. |
$166,800 (for all filers except married persons filing separately) |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
Table 19. Personal Exemption, 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 |
|
Joint (each spouse) |
$1,050 |
|
Single/Head of Household |
$1,350 |
|
Limitation on itemized deductions: 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 allowable 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. |
$159,950 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 2008 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
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: |
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 |
Table 20. Personal Exemption, 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 Deduction for the Elderly or the Blind: |
|
|
Joint (each spouse) |
$1,050 |
|
Single/Head of Household |
$1,300 |
|
Limitation on itemized deductions: 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 allowable 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. |
$156,400 (for all filers except married persons filing separately) |
|
Joint Returns |
|
|
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 |
|
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: |
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 |
|
|
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 21. Personal Exemption, 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 Deduction for the Elderly or the Blind: |
|
|
Joint (each spouse) |
$1,000 |
|
Single/Head of Household |
$1,250 |
|
Limitation on itemized deductions: 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 allowable 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. |
$150,500 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 2006 |
|
|
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 |
$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 |
|
|
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 |
|
|
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 22. Personal Exemption, 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: |
|
|
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 Deduction for the Elderly or the Blind: |
|
|
Joint (each spouse) |
$1,000 |
|
Single/Head of Household |
$1,250 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$145,950 (for all filers except married persons filing separately) |
|
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 |
|
|
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 |
|
|
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 |
$91,820 + 35% of the amount over $326,450 |
Table 23. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$950 |
|
Single/Head of Household |
$1,200 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$142,700 (for all filers except married persons filing separately) |
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$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: |
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 |
|
|
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 |
Table 24. Personal Exemption, 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)
Table 25. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$900 |
|
Single/Head of Household |
$1,150 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$137,300 (for all filers except married persons filing separately) |
|
Joint Returns |
|
|
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 |
|
|
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 |
|
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: |
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 |
Table 26. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$900 |
|
Single/Head of Household |
$1,100 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$132,950 (for all filers except for married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 2001 |
|
|
Joint Returns |
|
|
If taxable income is: |
Then, tax is: |
|
$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 |
|
Single Returns |
|
|
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 |
|
|
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 |
Table 27. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$850 |
|
Single/Head of Household |
$1,100 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$128,950 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 2000 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
Table 28. Personal Exemption, Standard Deductions, 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: |
|
|
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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$850 |
|
Single/Head of Household |
$1,050 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$126,600 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1999 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
|
over $283,150 |
$87,548 + 39.6% of the amount over $283,150 |
Table 29. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$850 |
|
Single/Head of Household |
$1,050 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$124,500 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1998 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
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 |
|
|
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 |
Table 30. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$800 |
|
Single/Head of Household |
$1,000 |
|
Limitation on Itemized Deductions: 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 allowable itemized deductions, or 3% of the difference between the taxpayer's AGI and that amount: |
$121,200 (for all filers except married persons filing separately) |
|
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 |
|
over $271,050 |
$81,647 + 39.6% of the amount over $271,050 |
|
Single Returns |
|
|
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 |
Table 31. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$800 |
|
Single/Head of Household |
$1,000 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$117,950 (for all filers except married persons filing separately) |
|
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 |
|
|
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 |
Table 32. Personal Exemption, Standard Deductions, 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 adjusted gross income exceeded these amounts: |
|
|
Joint |
$172,050 |
|
Single |
$114,700 |
|
Head of Household |
$143,350 |
|
Standard Deduction: |
|
|
Joint |
$6,550 |
|
Single |
$3,900 |
|
Head of Household |
$5,750 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Joint |
$750 |
|
Single/Head of Household |
$950 |
|
Limitation on Itemized Deductions: If an individual's adjusted gross income was greater than this amount, the itemized deductions that could be claimed had to be reduced by the lesser of 80% of allowable 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. |
$114,700 ($57,350 for married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1995 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
|
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 |
|
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 |
Table 33. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$750 |
|
Single/Head of Household |
$950 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$111,800 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1994 |
|
|
Joint Returns |
|
|
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 |
|
|
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 |
|
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 |
|
|
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 |
|
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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$700 |
|
Single/Head of Household |
$900 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$108,450 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1993 |
|
|
Joint Returns |
|
|
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 |
|
Head-of-Household Returns |
|
|
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 |
Table 35. Personal Exemption, Standard Deductions, 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 Single Head of Household |
$157,900 $105,250 $131,550 |
|
Standard Deduction: |
|
|
Joint |
$6,000 |
|
Single |
$3,600 |
|
Head of Household |
$5,250 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Joint |
$700 |
|
Single/Head of Household |
$900 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$105,250 (for all filers except married persons filing separately) |
|
Statutory Marginal Income Tax Rates, 1992 |
|
|
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 |
|
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 |
Table 36. Personal Exemption, Standard Deductions, 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 Deduction for the Elderly or the Blind: |
|
|
Joint |
$650 |
|
Single/Head of Household |
$850 |
|
Limitation on Itemized Deductions: 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 allowable 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. |
$100,000 (for all filers except married persons filing separately) |
|
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 |
|
over $82,150 |
$18,582 + 31% of the amount over $82,150 |
|
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 |
|
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 |
|
Personal Exemption: |
$2,050 |
|
Standard Deduction: |
|
|
Joint |
$5,450 |
|
Single |
$3,250 |
|
Head of Household |
$4,750 |
|
Additional Standard Deduction for the Elderly or the Blind: |
|
|
Joint |
$650 |
|
Single/Head of Household |
$800 |
|
Statutory Marginal Income Tax Rates, 1990 |
|
|
Joint 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 |
|
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 |
|
$10,645.50 + 33% of the amount over $47,050 |
|
|
over $109,100 |
$31,122.00 + 28% of the amount over $109,100 |
|
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 |
Source: IRS Revenue Procedure 90-7.
a. Implicit tax bracket generated by the "tax bubble," as described in the Appendix. 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, 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 |
|
|
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 |
|
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 the Appendix. 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: |
$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 |
|
|
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 |
|
|
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 the Appendix. 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.
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 25 statutory rates from the 1985 and 1986 tax years with two rates: 15% and 28%.18 Table 39 shows key elements of the 1988 tax rate structure. These rates applied equally to capital income and labor income.
In addition, TRA86 established a 5% surcharge on the taxable income of certain upper-income households. The purpose of the surcharge was twofold: (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.
The surcharge applied only to income over a certain threshold, and it ceased to apply to income beyond another threshold. The surcharge effectively created an additional statutory tax rate of 33% for amounts over the first threshold, with rates falling back to 28% for amounts over the second threshold, producing an income tax rate "bubble." The 1988 tax code therefore had four marginal tax brackets (with three marginal tax rates) in practice.
The surcharge was designed to erase 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 household, 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 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 illustrate 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 15% instead of 28% was $3,867.50 (obtained as $29,750 multiplied by 13%, the difference between 15% and 28%). 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 an additional statutory rate. The rates were then 15%, 28%, and 31%, and they applied to tax years beginning in 1991 and thereafter (see Table 36). OBRA90 also eliminated the tax rate bubble created by TRA86 and replaced it with a limitation on itemized deductions (often referred to as 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% (the 28% rate plus the 5% surcharge).
OBRA90's limitation on itemized deductions was based on a taxpayer's adjusted gross income (AGI). From 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 that taxpayer's itemized deductions were reduced by $300 ($110,000 less $100,000, multiplied by 0.03). 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. 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 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 illustrate how the personal exemption phaseout (PEP) increased tax burdens. In 1991, a married couple 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 minus the $150,000 threshold. 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 disallowance 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 allowed to deduct $3,096 ($4,300 of total personal exemptions less the disallowance of $1,204, 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. (Unlike the 5% surcharge under TRA86, this "10% surtax" was expressed as a percentage of the underlying tax rate of 36%, not as a percentage of income. As a result, the top marginal tax rate was equal to 36% + [0.1 × 36%], or 39.6%.)
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 increases. Taxpayers were also allowed to pay any additional 1993 taxes in three equal annual installments, starting with the 1993 tax year.
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.
Finally, OBRA93 made permanent both the Pease limitation and the PEP.
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. All 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.19 EGTRRA gradually expanded the bracket from 2003 to 2007.
Second, the 2001 act gradually 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 limitations 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 that were designed to reduce marriage penalties 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 was set 80% higher for joint returns than for single returns in 2005, 87% higher in 2006, 93% higher in 2007, and 100% higher 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. Initially, the increase was scheduled to be phased in between 2005 and 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. 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 to 15%, set a rate of 0% for certain low-income taxpayers, and allowed certain qualified dividends to be taxed at the long-term capital gains tax rates.
Working Families Tax Relief Act of 2004
The Working Families Tax Relief Act of 2004 (WFTRA; P.L. 108-311) 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 provisions would be fully phased in.
WFTRA also extended EGTRRA's marriage penalty relief from 2005 to 2008. The standard deduction for a married couple filing jointly was set to twice 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.
Tax Increase Prevention and Reconciliation Act of 2005
JGTRRA's reductions in tax rates for long-term capital gains and qualified dividends were scheduled to expire at the end of 2008. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA; P.L. 109-222) extended the reduced rates through 2010.
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
A last-minute agreement in 2010 between President Obama and congressional leaders from both parties cleared the way for another temporary extension of all the tax cuts enacted in the early 2000s. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUC; P.L. 111-312) extended the cuts through 2012, along with several other tax provisions from previous laws.20
American Taxpayer Relief Act of 2012
Facing a return of pre-EGTRRA statutory tax rates on January 1, 2013, Congress and President Obama agreed on legislation (the American Taxpayer Relief Act of 2012, P.L. 112-240) to permanently extend all of the individual income tax rate cuts enacted during the George W. Bush presidency, except for the top rate, which returned to 39.6%, its level at the start of Bush's first term.
The act also permanently extended the repeal of EGTRRA's phaseout of the personal exemption, but only for taxpayers with AGIs at or below certain levels ($250,000 for single filers and $300,000 for married joint filers). Taxpayers with AGIs above these inflation-adjusted amounts were still subject to the phaseout. The same treatment applied to EGTRRA's repeal of the Pease limitation.
Individual marginal income tax rates were next to be changed, with the enactment of the 2017 tax revision, commonly referred to as the Tax Cuts and Jobs Act (TCJA; P.L. 115-97). The law changed a number of individual income tax provisions, including individual tax rates and the standard deduction. For tax years 2018-2025, the individual income tax included seven brackets with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. (Prior to the FY2025 reconciliation law, the rates were scheduled to revert to their pre-2018 levels in 2026.)
For eligible individuals receiving income from pass-through businesses (i.e., partnerships, S corporations, and sole proprietorships), these temporary statutory rates could be further reduced by taking a deduction created by the 2017 tax revision. Section 199A of the federal tax code allows a pass-through business owner to deduct up to 20% of income from a qualified trade or business in determining their individual income tax liability.21
The 2017 tax revision also made the following changes to the individual income tax from 2018 to 2025:
The 2017 tax revision also restricted various itemized tax deductions, including the state and local tax (SALT) deduction and the mortgage interest deduction.23 When combined with the near doubling of the standard deduction—which taxpayers cannot use if they itemize their deductions—these changes made tax itemization less advantageous, despite the suspension of the overall limitation on itemized deductions. The percentage of taxpayers itemizing their deductions declined shortly after the law's enactment, falling from 31% in 2017 to 11% in 2018.24
The FY2025 Reconciliation Law
The FY2025 reconciliation law (P.L. 119-21), also known as the One Big Beautiful Bill Act, extended a number of reforms from P.L. 115-97 and made other changes to the tax code.
The FY2025 reconciliation law made permanent the individual income tax rates that P.L. 115-97 originally instituted through 2025. Starting in 2026, it also raised the income thresholds at which the 12% and 22% brackets begin by accounting for one additional year of inflation (that which occurred from 2016 to 2017) in the cost-of-living adjustment calculation. The effect of this change is to increase the amount of income taxed at the 10% and 12% rates (the two lowest marginal tax rates for ordinary income).
The law raised the 2025 standard deduction to $15,750 for single filers, $23,625 for head-of-household filers, and $31,500 for married joint filers; those amounts would otherwise have been $15,000, $22,500, and $30,000, respectively. Standard deduction amounts in future years will continue to be indexed to inflation as measured by the C-CPI-U. The FY2025 reconciliation law also allows taxpayers claiming the standard deduction to deduct up to $1,000 ($2,000 for married joint filers) for contributions to charity starting in 2026; under prior law, only itemizers could deduct charitable contributions from their taxable incomes.25
The FY2025 reconciliation law permanently repealed the personal exemption and the Pease limitation on itemized deductions, which P.L. 115-97 had temporarily suspended through the end of 2025. In place of the Pease limitation, the law created a new "2/37ths" limitation on overall itemized deductions. Under this limitation, taxpayers' total itemized deductions are reduced by 2/37ths of the lesser of
The limitation effectively works such that
For example, a married couple with $1 million of taxable income and $100,000 of itemized deductions—a couple with taxable income in the top 37% bracket, fitting criterion #3 above—would have their itemized deductions reduced by $5,405 (equal to 2/37ths of $100,000). At a marginal tax rate of 37%, the couple would pay an additional $2,000 of income taxes.
The effect of this limitation is that taxpayers in the top bracket (37%) will receive the same benefits from itemized deductions as taxpayers in the second-highest bracket (35%). A taxpayer in the second-highest bracket who claims a $100,000 deduction may reduce their tax payments by $35,000. Prior to the FY2025 reconciliation law, a taxpayer in the 37% bracket who claimed such a deduction could reduce their taxes by $37,000; as shown in the example above, such a taxpayer now owes an additional $2,000 due to the limitation, effectively reducing the benefit of their deductions from $37,000 to $35,000.
The FY2025 reconciliation law made the Section 199A deduction permanent and increased its income phaseout ranges from $50,000 to $75,000 for single filers and from $100,000 to $150,000 for married joint filers. The law also created a $400 minimum deduction for taxpayers with at least $1,000 of qualified business income. The Section 199A deduction is not an itemized deduction and therefore is not subject to the 2/37ths limitation.
The FY2025 reconciliation law also created new temporary tax deductions that taxpayers may claim regardless of whether they itemize their deductions or take the standard deduction. These include new deductions for tip income, interest payments on car loans, and overtime pay.26 They also include a new $6,000 deduction for individuals age 65 and older. This "senior deduction" applies to tax years 2025-2028; the deduction is reduced by 6% of modified AGI above $75,000 for individuals and above $150,000 for married couples. A married couple consisting of two seniors may claim up to $12,000 of deductions, and a married couple with one senior may claim up to $6,000. As with the Section 199A deduction, these deductions are not reduced by the 2/37ths limitation, nor are they included in the limitation's income calculation (i.e., the sum of taxable income and all itemized deductions), as these deductions are not part of "taxable income." Each of these deductions is scheduled to expire after tax year 2028 under current law.
The FY2025 reconciliation law changed many tax provisions not discussed in depth in this report, including the SALT deduction and the charitable contributions deduction for itemizers. These reforms are described in CRS Report R48611, Tax Provisions in P.L. 119-21, the FY2025 Reconciliation Law, coordinated by Anthony A. Cilluffo.
| 1. |
For more information on the taxation of noncitizen residents, see CRS Report R43840, Federal Income Taxes and Noncitizens: Frequently Asked Questions. Congressional offices may contact Brendan McDermott, CRS Analyst in Public Finance, with questions. |
| 2. |
These 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 claimed the standard deduction (or nonitemizers) could also claim a deduction for charitable cash contributions. For more details, see CRS Insight IN11420, Temporary Enhancements 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. |
Internal Revenue Service Statistics of Income Table 1.4, accessed April 14, 2026, at https://www.irs.gov/statistics/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income. Approximately 1.4% of taxpayers claimed neither type of deduction, either because they had zero income (and therefore did not require a deduction) or because they were denied access to the standard deduction and itemized deductions due to uncommon legal restrictions. |
| 4. |
CRS Report R48611, Tax Provisions in P.L. 119-21, the FY2025 Reconciliation Law, coordinated by Anthony A. Cilluffo. |
| 5. |
For more information on the alternative minimum tax for individuals, see CRS In Focus IF10705, Tax Reform: The Alternative Minimum Tax, by Donald J. Marples. |
| 6. |
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 Income Tax: Background and Analysis, by Molly F. Sherlock. |
| 7. |
See CRS Report R46246, The SALT Cap: Overview and Analysis, by Grant A. Driessen. |
| 8. |
For more information, see CRS In Focus IF11540, The Mortgage Interest Deduction, by Mark P. Keightley. |
| 9. |
Andre Williams, Major Updates to Casualty Loss Deductions Under the OBBBA: What Taxpayers Need to Know, Barnes Dennig, August 18, 2025, https://www.barnesdennig.com/updates-casualty-loss-deductions-under-obbba-what-taxpayers-need-to-know/; and CRS Report R45864, Tax Policy and Disaster Recovery, by Molly F. Sherlock and Jennifer Teefy. |
| 10. |
CRS Report R43347, Budgetary and Distributional Effects of Adopting the Chained CPI, by Donald J. Marples. |
| 11. |
Bureau of Labor Statistics, Inflation & Prices: All Urban Consumers (Current Series), accessed April 2026, https://www.bls.gov/data/. |
| 12. |
Comparing average price levels in the CPI-U to levels from the previous year, inflation was 4.7% in 2021, 8.0% in 2022, 4.1% in 2023, 2.9% in 2024, and 2.7% in 2025. (Because prices were not reported for October 2025, due to the government shutdown, the 2025 inflation rate excludes October 2024 data to provide an apples-to-apples comparison.) |
| 13. |
The standard deduction increased by more than the rate of inflation between tax years 2024 and 2025. The 10% and 12% tax brackets increased by more than the rate of inflation between tax years 2025 and 2026. |
| 14. |
The CPI-U rose 8.9% in 1981, following a rise of 12.5% in the previous year. By contrast, the average annual U.S. inflation rate from 1980 to 2019, as measured by the CPI-U, was 3.0%. |
| 15. |
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. |
| 16. |
CRS Report RL32293, The Chained Consumer Price Index: What Is It and Would It Be Appropriate for Cost-of-Living Adjustments?, by Julie M. Whittaker. |
| 17. |
U.S. Congress, Joint Committee on Taxation, General Explanation of P.L. 115-97, JCS-1-18 (Government Publishing Office, 2018), p. 434. |
| 18. |
In 1986, the federal income tax included a 0% marginal tax rate (in addition to the standard deduction and personal exemption) and 25 positive marginal tax rates, so it could be described as having 26 marginal rates. However, marginal tax rates (not just the brackets to which the rates applied) differed by filing status, such that all taxpayers had a 0% marginal rate, followed by 14 positive rates for married joint filers, married separate filers, and HoH filers, and 15 positive rates for single filers. For more information, see Tax Foundation, Historical US Federal Individual Income Tax Rates & Brackets, 1862-2025, August 15, 2025, https://taxfoundation.org/data/all/federal/historical-income-tax-rates-brackets/; and John Labate and Dan Holik, Individual Income Tax Rates, 1986, Internal Revenue Service, Table 1, https://www.irs.gov/pub/irs-soi/86inintr.pdf. |
| 19. |
For more information, see archived 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. |
| 20. |
For example, see changes made to the earned income tax credit and the child tax credit by the American Recovery and Reinvestment Act (P.L. 111-5) that TRUC extended. For more information, see CRS Report R44825, The Earned Income Tax Credit (EITC): Legislative History, and CRS Report R45124, The Child Tax Credit: Legislative History. Congressional offices may contact Brendan McDermott, CRS Analyst in Public Finance, with questions about the EITC or the child tax credit. |
| 21. |
As a result of the adjustment, the effective individual tax rates for qualified pass-through business income are 8.0%, 9.6%, 17.6%, 19.2%, 25.6%, 28.0%, and 29.6%. |
| 22. |
In 2017, the standard deduction was $12,700 for joint filers, $9,350 for head-of-household filers, and $6,350 for single filers. |
| 23. |
CRS In Focus IF12893, Selected Issues in Tax Reform: The Deduction for State and Local Taxes, by Grant A. Driessen; and CRS In Focus IF12789, Selected Issues in Tax Policy: The Mortgage Interest Deduction, by Mark P. Keightley. |
| 24. |
CRS Insight IN12517, Selected Issues in Tax Reform: Itemized Deductions, by Nicholas E. Buffie. |
| 25. |
The deduction can also be claimed by the small share of taxpayers who are ineligible for the standard deduction. For information on restrictions on who may claim the standard deduction, see Internal Revenue Service, "Topic No. 551, Standard Deduction," February 25, 2026, https://www.irs.gov/taxtopics/tc551. For information on the $1,000 charitable contributions deduction, see CRS Report R48789, Tax Issues Relating to Charitable Contributions and Organizations, by Jane G. Gravelle, Donald J. Marples, and Brendan McDermott. |
| 26. |
CRS In Focus IF13158, Taxation of Tip Income Under the 2025 Reconciliation Law, by Brendan McDermott; and CRS Report R48611, Tax Provisions in P.L. 119-21, the FY2025 Reconciliation Law, coordinated by Anthony A. Cilluffo. |