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2007 Federal Income Tax Brackets

By JLP | September 20, 2006

Here’s a look at the ESTIMATED Federal Income Tax Brackets for 2007 along with 2006 brackets for comparison purposes. I got this information in this Wall Street Journal article. In addition to these changes, the personal exemption is expected to rise to $3,400 from $3,300. The standard deduction is also set to rise to $10,700 from $10,300 for joint tax payers. For most single filers, the standard deduction is expected to rise to $5,350 from $5,150.

And, some other great news: The income phaseout for Roth IRA contributions is expected to rise to $156,000 – $166,000 for joint filers (compared to the current phaseout of $150,000 – $160,000). For most single filers, the new phaseout is $99,000 – $114,000 compared to the current phaseout of $95,000 – $110,000.


Married Filing Jointly

TAX
RATE

2007 TAXABLE
INCOME

2006 TAXABLE
INCOME

10%

Not over $15,650

Not over $15,100

15

15,650 – 63,700

15,100 – 61,300

25

63,700 – 128,500

61,300 – 123,700

28

128,500 – 195,850

123,700 – 188,450

33

195,850 – 349,700

188,450 – 336,550

35

Over $349,700

Over $336,550



Most Single Filers

TAX
RATE

2007 TAXABLE
INCOME

2006 TAXABLE
INCOME

10%

Not over $7,825

Not over $7,550

15

7,825 – 31,850

7,550 – 30,650

25

31,850 – 77,100

30,650 – 74,200

28

77,100 – 160,850

74,200 – 154,800

33

160,850 – 349,700

154,800 – 336,550

35

Over $349,700

Over $336,550

Topics: Tax Planning, Taxes | 27 Comments »


27 Responses to “2007 Federal Income Tax Brackets”

  1. ib Says:
    September 22nd, 2006 at 10:57 am

    i get confused on this. will these figures (at left) include or not include the pretax items such as 401k?
    for instance, if i am firnly in one tax bracket but if i am able to increase my 401k contrib to the point that i can be put into a lower one, would that work? or is it really based on what happens before the 401k comes out?

    also, is there a nady link to the 2006 charts???

    many thanks in advance!

  2. JLP Says:
    September 22nd, 2006 at 12:17 pm

    ib,

    Your 401(k) contributions come out BEFORE your taxes are calculated. So, if you made $65,000 but put 10% or $6,500 of that in your 401(k), your income would be $58,500. If you had no other deductions or anything like that and assuming you are filing jointly (with 2 exemptions), your taxable income would be $41,000, calculated as follows:

    $58,500 (Box 1 on your W-2) – $6,800 (2 personal exemptions at $3,400 each) – $10,700 (standard deduction for married filing jointly) = $41,000

    Your total tax would be:

    First $15,600 X 10% = $1,560
    + Remaining $25,400 X 15% = $3,810
    Total: $5,370

    I hope this helps.

  3. Denise Says:
    September 22nd, 2006 at 4:07 pm

    You probably didn’t post this to open up a thread of complaint, but as a newlywed who makes equal to her husband, I’m constantly amazed at how much we’re being punished by tax law since we’ve been married.

    It absolutely killed us last year as we weren’t able to deduct any losses from real estate because our AGI was too high collective. (I know “wah-wah, you make too much money, wah,” but it hurts still.) We happened to own these properties jointly before we were married and both benefitted from a nice fat deduction. Talk about marriage penalty. It would stand to reason that the brackets presented here should just double, right? If a couple makes 100,000 each, they would be at 28% individually, but 33% jointly. I guess that’s probably why they allow “married filing singly,” but according to my accountant for the real estate deductions they don’t care how we file. Now that we’re married, we can’t take the deduction until our AGI gets lower.

    Anyway… thought I’d put a little gripe out there in hopes that it will save someone a headache later. I love being married, but not much has changed for the better financially (except possibly the ability for me to use husband’s insurance rather than maintain my own.)

    Does anyone out there have experience with the married filing singly that cares to comment?

  4. ib Says:
    September 26th, 2006 at 4:02 pm

    thanks, jlp. i see. i suppose i will ask my tax guy then.

    this stuff always stumps me. tax stuff always a foreign language to me.

    so it does seem if i up the 401k amount further (if results in lowering taxable income sufficiently enough), i may save on taxes next time by a significant amount (i do not own a home, am unmarried, but do participate in employer fsa plan).

  5. Finance Buff Says:
    October 14th, 2006 at 12:01 pm

    Who estimated these numbers? You? IRS? You should publish the source of the estimates.

  6. JLP Says:
    October 14th, 2006 at 10:52 pm

    Finance Buff,

    You are right. I should have linked to my source. I added the source. You can find it in the opening paragraph. The author of article got his information from private tax consultants because the official numbers have not yet been released by the IRS. That’s why they are called estimates.

  7. Del Block Says:
    October 18th, 2006 at 9:30 am

    Please advise what the standard deduction would be in 2007 for joint filers over 65 years of age

  8. Spending Less Says:
    October 19th, 2006 at 2:18 pm

    Buying house may not save us as much

    I had previously posted about how I was thinking that the end of this year might be thebest time to buy

  9. MegMoney Says:
    January 17th, 2007 at 9:56 pm

    These numbers are official…

  10. MegMoney Says:
    January 17th, 2007 at 9:57 pm

    These numbers are official…
    http://www.irs.gov/formspubs/article/0,,id=109876,00.html

  11. AllFinancialMatters » Blog Archive » Taking an Early Withdrawal From 401(k) - Does it Make Sense? Says:
    May 17th, 2007 at 11:30 am

    [...] I used 2007’s tax brackets, personal expemption and standard deduction throughout the example. [...]

  12. Rene Says:
    June 7th, 2007 at 7:14 pm

    I see tax brackets for everybody for each year. and that helps to figure out your tax at the end of year. but I am having a hard time determing what is the percentage of taxes we paid everytime we get paid. I can find out the state part M-3 SS, Mc, but I can not find the one for Federal taxes. Married claiming 3.

  13. Paul Says:
    June 17th, 2007 at 7:38 pm

    If I am single and my pension was 24K and SS was 17K my tax rate would be 25%. Would this be correct?

  14. Frank fernandis Says:
    July 27th, 2007 at 11:54 pm

    I live in DC and I hope that Brownback’s cheap election year stunt moves forward. I’m actually not in favor or opposed on substantive grounds. I haven’t looked at the proposal yet. However, as people who chafe under the tyranny of taxation without representation, DC residents would welcome the attention that Brownback’s proposal would bring to our cause of voting rights.

  15. A Preview of the 2008 Federal Income Tax Brackets—� AllFinancialMatters Says:
    September 26th, 2007 at 1:21 pm

    [...] 2007 Federal Income Tax Brackets [...]

  16. Debbie Willis Says:
    October 10th, 2007 at 1:59 pm

    I became a widow at age 52. I continue to work full-time. How much money am I allowed to make, and not pay taxes? I heard if I am not married at age 60 that I can begin to receive social security payments; is this correct? Thank you.
    Debbie

  17. NCMantle Says:
    October 31st, 2007 at 12:02 pm

    The way I see this schedule – if your taxable income hits 349,700 your tax rate actually lowers to approximately 28% (not counting anything over that amount). So if you hit 345,000 for example, you would pay much more in taxes(I am guessing about 5% more overall). Is this correct?

    Thanks

  18. JLP Says:
    October 31st, 2007 at 12:16 pm

    NCMantle,

    No, that’s not true. Anything OVER $349,700 is taxed at 35%.

  19. NCMantle Says:
    October 31st, 2007 at 1:15 pm

    Thanks for replying – what about anything under 349,700? at what rate is that taxed?

  20. jkhatun Says:
    November 2nd, 2007 at 10:23 am

    when you say 25% tax bracket, does that include taxes for Fedral, SS tax and Medicare tax?? for example my HR statement shows x amount for federal; x amount for SocialSec. Tax; and Medicare Tax, are all these tax calculated into the 25% or just the federal tax? please advice!

  21. CJD Says:
    November 18th, 2007 at 8:16 am

    Paul your total tax would be $6650 or about 16 %

  22. Ed Lewis Says:
    December 26th, 2007 at 2:40 pm

    What tax bracket makes it an advantage to do the 2007 IRA Charitable Contribution?

  23. Miguel Says:
    December 31st, 2007 at 10:57 am

    jkhatun:
    the 25 % tax refers only to the federal tax portion of your taxes. This 25% tax bracket is based on your adjusted gross income between $31,850 and $77,100.

    social security is 6.2% for employees up to $97,500 in earnings
    Medicare is currently at 1.45% for employees.

  24. federal income tax brackets Says:
    July 8th, 2008 at 4:58 pm

    [...] [...]

  25. JL Says:
    August 7th, 2008 at 2:31 pm

    Are federal, state, medicare and social security taxes all calculated from the gross income individually, or are they calculated based on the adjusted amount, for example AFTER federal tax is subtracted, etc. (ie, is the state tax calculated from my gross, or from my gross minus federal tax). If they are not all based on the raw gross, what ORDER are they calculated in? (first federal, then state, etc?)

  26. nazrene Says:
    November 3rd, 2008 at 5:33 pm

    I have been out of a job for a year taking care of an ill parent. My tax bracket then is 10% (is that right – with no income?) so if I were to withdraw my 401K, what percentage will go to taxation?

    Any advise will be appreciated – Thank you

  27. Lina Says:
    April 2nd, 2009 at 5:03 pm

    How do you calculate Federal tax and California State tax? I know Federal is 25%. Please help!

Comments