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When:
January 01, 2004
Who it Affects:
All tax payers.
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2004 Tax Law Changes
New brackets, same rates
Income tax rates are unchanged for 2004 compared with 2003. But income tax brackets have been adjusted for inflation.
That could mean savings for you.
Here's how the new rates and brackets work 2004.
| Tax rates and brackets for 2004 | If your taxable income
is over | But not over | Your tax is this | Plus this % | Of the excess over | | Single | | | | | | $0 | $7,150 | $0 | 10% | $0 | | $7,150 | $29,050 | $715.00 | 15% | $7,150 | | $29,050 | $70,350 | $4,000.00 | 25% | $29,050 | | $70,350 | $146,750 | $14,325.00 | 28% | $70,350 | | $146,750 | $319,100 | $35,717.00 | 33% | $146,750 | | $319,100 | -- | $92,592.50 | 35% | $319,100 | | | | | | Married filing jointly
or widow(er)* | | | | | | $0 | $14,300 | $0 | 10% | $0 | | $14,300 | $58,100 | $1,430.00 | 15% | $14,300 | | $58,100 | $117,250 | $8,000.00 | 25% | $58,100 | | $117,250 | $178,650 | $22,787.50 | 28% | $117,250 | | $178,650 | $319,100 | $39,979.50 | 33% | $178,650 | | $319,100 | -- | $86,328.00 | 35% | $319,100 | | | | | | | Married filing separately | | | | | | $0 | $7,150 | $0 | 10% | $0 | | $7,150 | $29,050 | $715.00 | 15% | $7,150 | | $29,050 | $58,625 | $4,000.00 | 25% | $29,050 | | $58,625 | $89,325 | $11,393.75 | 28% | $58,625 | | $89,325 | $159,550 | $19,989.75 | 33% | $89,325 | | $159,550 | -- | $43,164.00 | 35% | $159,550 | | | | | | | Head of household | | | | | | $0 | $10,200 | $0 | 10% | $0 | | $10,200 | $38,900 | $1,020.00 | 15% | $10,200 | | $38,900 | $100,500 | $5,325.50 | 25% | $38,900 | | $100,500 | $162,700 | $20,725.00 | 28% | $100,500 | | $162,700 | $319,100 | $38,141.00 | 33% | $162,700 | | $319,100 | -- | $89,753.00 | 35% | $319,100 |
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2005 rates and brackets
We know readers want to start their planning for next year. So, here are the rates and brackets for 2005.
| Projected tax rates and brackets for 2005 | If your taxable income
is over | But not over | Your tax is this | Plus this % | Of the excess over | | Singles | | | | | | $0.00 | $7,300 | $0.00 | 10% | $0 | | $7,300 | $29,700 | $730.00 | 15% | $7,300 | | $29,700 | $71,950 | $3,990.00 | 25% | $29,700 | | $71,950 | $150,150 | $14,715.00 | 28% | $71,950 | | $150,150 | $326,450 | $36,611.00 | 33% | $150,150 | | $326,450 | -- | $94,790.00 | 35% | $326,450 | | | | | | Married filing jointly
or widow(er)* | | | | | | 0 | $14,600 | $0.00 | 10% | $0 | | $14,600 | $59,400 | $1,460.00 | 15% | $14,600 | | $59,400 | $119,950 | $8,180.00 | 25% | $59,400 | | $119,950 | $182,800 | $23,317.50 | 28% | $119,950 | | $182,800 | $326,450 | $40,915.50 | 33% | $182,800 | | $326,450 | -- | $88,320.00 | 35% | $326,450 | | | | | | | Married couples filing singly | | | | | | 0 | $7,300 | $0.00 | 10% | $0 | | $7,300 | $29,700 | $730.00 | 15% | $7,300 | | $29,700 | $59,975 | $4,090.00 | 25% | $29,700 | | $59,975 | $91,400 | $11,658.75 | 28% | $59,975 | | $91,400 | $163,225 | $20,457.75 | 33% | $91,400 | | $163,225 | -- | $44,160 | 35% | $163,225 | | | | | | | Heads of household | | | | | | 0 | $10,450 | $0.00 | 10% | $0 | | $10,450 | $39,800 | $1,045.00 | 15% | $10,450 | | $39,800 | $102,800 | $5,447.50 | 25% | $39,800 | | $102,800 | $166,450 | $21,197.50 | 28% | $102,800 | | $166,450 | $326,450 | $39,019.50 | 33% | $166,450 | | $326,450 | -- | $91,819.50 | 35% | $326,450 |
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*Sometimes called "qualifying" widow or widower. This filing status is available for two years following the year of a spouse's death and basically applies the filing data afforded married joint filers.
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