2004 Tax Rates
Below are the tax rates on ordinary income. Tax rates progressively increase as income increases. The tax rates apply only to the income in each tax bracket range. Tax rates apply only to taxable income. Non-taxable income encompasses tax-free interest on municipal bonds, above-the-line adjustments, itemized deductions or the standard deduction, and personal exemptions. Taxable income is almost always less than your total income.Capital gains are taxed at different tax rates. Capital gains tax rates are lower than ordinary income tax rates, and are calculated separately.
Note: These tax rate schedules are provided for tax planning purposes. To compute your actual income tax, please see the 2004 instructions for Form 1040, 1040A, or 1040EZ as appropriate.
Single Filing Status
(Tax Rate Schedule X)- 10% on income between $0 and $7,150
- 15% on the income between $7,150 and $29,050; plus $715.00
- 25% on the income between $29,050 and $70,350; plus $4,000.00
- 28% on the income between $70,350 and $146,750; plus $14,325.00
- 33% on the income between $146,750 and $319,100; plus $35,717.00
- 35% on the income over $319,100; plus $92,592.50
Married Filing Jointly or Qualifying Widow(er) Filing Status
(Tax Rate Schedule Y-1)- 10% on the income between $0 and $14,300
- 15% on the income between $14,300 and $58,100; plus $1,430.00
- 25% on the income between $58,100 and $117,250; plus $8,000.00
- 28% on the income between $117,250 and $178,650; plus $22,787.50
- 33% on the income between $178,650 and $319,100; plus $39,979.50
- 35% on the income over $319,100; plus $86,328.00
Married Filing Separately Filing Status
(Tax Rate Schedule Y-2)- 10% on the income between $0 and $7,150
- 15% on the income between $7,150 and $29,050; plus $715.00
- 25% on the income between $29,050 and $58,625; plus $4,000.00
- 28% on the income between $58,625 and $89,325; plus $11,393.75
- 33% on the income between $89,325 and $159,550; plus $19,989.75
- 35% on the income over $159,550; plus $43,164.00
Head of Household Filing Status
(Tax Rate Schedule Z)- 10% on the income between $0 and $10,200
- 15% on the income between $10,200 and $38,900; plus $1,020.00
- 25% on the income between $38,900 and $100,500; plus $5,325.00
- 28% on the income between $100,500 and $162,700; plus $20,725.00
- 33% on the income between $162,700 and $319,100; plus $38,141.00
- 35% on the income over $319,100; plus $89,753.00
Tax Calculation Example
Mary is a single taxpayer with $350,000 of taxable income. Her income is taxed in each of the tax brackets, as follows:- $715 (tax on the first $7,150 of Mary's income, taxed at the 10% rate), plus
- $3,285 (tax on the income between $7,150 and $29,050, taxed at the 15% rate), plus
- $10,325 (tax on the income between $29,050 and $70,350, taxed at the 25% rate), plus
- $21,392 (tax on the income between $70,350 and $146,750, taxed at the 28% rate), plus
- $56,875.50 (tax on the income between $146,750 and $319,100, taxed at the 33% rate), plus
- $10,815 (tax on the income over $319,100, taxed at the 35% rate), for a grand total tax of
- $103,407.50, which is rounded up to $103,408.
