2007 Federal Income Tax Brackets

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





Not over $15,650

Not over $15,100


15,650 – 63,700

15,100 – 61,300


63,700 – 128,500

61,300 – 123,700


128,500 – 195,850

123,700 – 188,450


195,850 – 349,700

188,450 – 336,550


Over $349,700

Over $336,550

Most Single Filers





Not over $7,825

Not over $7,550


7,825 – 31,850

7,550 – 30,650


31,850 – 77,100

30,650 – 74,200


77,100 – 160,850

74,200 – 154,800


160,850 – 349,700

154,800 – 336,550


Over $349,700

Over $336,550

27 responses to 2007 Federal Income Tax Brackets

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

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

  8. These numbers are official…

  9. These numbers are official…

  10. 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.

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

  12. 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.

  13. 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.

  14. 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?


  15. NCMantle,

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

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

  17. 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!

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

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

  20. 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.

  21. 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?)

  22. 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

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

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