Tax rates schedule 2007

Below you can find 2007 tax rates. These rates apply to taxable ordinary income earned in year 2007, and are effective for the tax return that you file in 2008.

You can see that tax rates progressively increase as income increases.

The tax rates for 2007 below apply only to the income in each tax bracket range.

Interactive Tax Calculator

Enter your taxable income in the yellow field bellow and click the button to see how much taxes you owe to the government.

This calculator includes logic for only a limited number of tax years. You can find our complete calculator at the federal tax calculator page.

This interactive tax calculator as well as the tax rate schedules provided below are provided for tax planning purposes only. Never use this or any other website to calculate your final tax. Please, always refer to IRS published instructions for Form 1040, 1040A, or 1040EZ to work with the official IRS authored tables.

Filing Status: SINGLE

(Tax Rate Schedule X)

• 10% on income between $0 and $7,825
• 15% on the income between $7,825 and $31,850; plus $782.50
• 25% on the income between $31,850 and $77,100; plus $4,386.25
• 28% on the income between $77,100 and $160,850; plus $15,698.75
• 33% on the income between $160,850 and $349,700; plus $39,148.75
• 35% on the income over $349,700; plus $101,469.25

It is obvious from the schedule that lower-income people pay lower rate.

Filing Status: MARRIED FILING JOINTLY

(Tax Rate Schedule Y-1)

• 10% on the income between $0 and $15,650
• 15% on the income between $15,650 and $63,700; plus $1,565.00
• 25% on the income between $63,700 and $128,500; plus $8,772.50
• 28% on the income between $128,500 and $195,850; plus $24,972.50
• 33% on the income between $195,850 and $349,700; plus $43,830.50
• 35% on the income over $349,700; plus $94,601.00

Filing together with your wife is more beneficial if you are in the high-income bracket.

Filing Status: MARRIED FILING SEPARATELY

(Tax Rate Schedule Y-2)

• 10% on the income between $0 and $7,825
• 15% on the income between $7,825 and $31,850; plus $782.50
• 25% on the income between $31,850 and $64,250; plus $4,386.25
• 28% on the income between $64,250 and $97,925; plus $12,486.25
• 33% on the income between $97,925 and $174,850; plus $21,915.25
• 35% on the income over $174,850; plus $47,300.50

There is some tax penalty for not filing jointly if married.

Filing Status: HEAD OF HOUSEHOLD

(Tax Rate Schedule Z)

• 10% on the income between $0 and $11,200
• 15% on the income between $11,200 and $42,650; plus $1,120.00
• 25% on the income between $42,650 and $110,100; plus $5,837.50
• 28% on the income between $110,100 and $178,350; plus $22,700.00
• 33% on the income between $178,350 and $349,700; plus $41,810.00
• 35% on the income over $349,700; plus $98,355.50

You can see that tax brackets are wider compared to the single filing status.

Example of tax calculation

How is this schedule used? Let's demonstrate that on Joe Smith. Joe Smith is SINGLE and makes $105,000 of taxable income per year. That is his income after accounting for all deductions and exemptions.

Joe's tax will be the following:

$782.50 (tax on the first $7,825 of Joe's income, taxed at the 10% rate), plus

$3,603.75 (tax on the income between $7,825 and $31,850, taxed at the 15% rate), plus

$11,312.50 (tax on the income between $31,850 and $77,100, taxed at the 25% rate), plus

$7,812.00 (tax on the income between $77,100 and $105,000, taxed at the 28% rate)

The total will be $23,510 (rounded down).

Mary's income tax is $101,574 (rounding down). This tax consists of $7,812 tax on the amount over $77,100 (the income in the 28% tax bracket) plus $15,698.75 (the tax on income in all the lower tax brackets combined).

What is the difference between a marginal and average tax rate?

You can find that at this page: Marginal and average tax rate.

Tax rates schedule for 2008

See the Tax rates schedule 2008 page.