Projected Tax Brackets for 2006

September 21, 2005

Here’s a look at the expected tax brackets for the 2006 tax year:

Married Couples Filing Jointly

TAX
RATE

2006
Taxable
Income

2005
Taxable
Income

10%

Not over $15,100

Not over $14,600

15%

15,100 – 61,300

14,600 – 59,400

25%

61,300 – 123,700

59,400 – 119,500

28%

123,700 – 188,450

119,500 – 182,800

33%

188,450 – 336,550

182,800 – 326,450

35%

Over $336,550

Over $326,450

Most Single Filers

TAX
RATE

2006
Taxable
Income

2005
Taxable
Income

10%

Not over $7,550

Not over $7,300

15%

7,550 – 30,650

7,300 – 29,700

25%

30,650 – 74,200

29,700 – 71,950

28%

74,200 – 154,800

71,950 – 150,150

33%

154,800 – 336,550

150,150 – 326,450

35%

Over $336,550

Over $326,450

In addition to these changes, the basic standard deduction for married couples filing jointly is expected to increase to $10,300 for 2006 from $10,000 for 2005. For most single filers, the standard deduction will increase to $5,150 for 2006 from $5,000 for 2005 (notice that it is half the amount for married filing jointly).

The annual gift-tax exclusion will most likely move up to $12,000 from it’s current $11,000, which has been unchanged since 2002.

Here are some resources for more information on taxes:

4 responses to Projected Tax Brackets for 2006

  1. Thank you JLP. Very good info.
    small error in 15% upper limit for 2005 single filers

  2. Thanks for catching the error. It’s fixed.

  3. yep this will definitely be useful (and more so than the IRS due to your easily accessible and readable layout!). Thanks JLP!

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