Information about...

1. Commercial Agriculture
2. Environment & Natural Resources
3. Fisheries & Aquaculture
4. Food, Nutrition & Health
5. Home, Lawn & Garden
6. Youth, Community & Economic Development

2007 Marginal Tax Brackets

Your marginal tax bracket determines how much of the earnings from savings and investments you get to keep after taxes. Below are the four individual tax rate schedules for 2007:

Individual Tax Rate Schedules for 2007

Filing Status	Taxable Income ($)	Marginal Tax Bracket Rate (%)
Married Filing Jointly	0 to 15,650	10
	15,651 to 63,700	15
	63,701 to 128,500	25
	128,501 to 195,850	28
	195,851 to 349,700	33
	349,701 and higher	35
Head of Household	0 to 11,200	10
	11,201 to 42,650	15
	42,651 to 110,100	25
	110,101 to 178,350	28
	178,351 to 349,700	33
	349,701 and higher	35
Single	0 to 7,825	10
	7,826 to 31,850	15
	31,851 to 77,100	25
	77,101 to 160,850	28
	160,851 to 349,700	33
	349,701 and higher	35
Married Filing Separately	0 to 7,825	10
	7,826 to 31,850	15
	31,851 to 64,250	25
	64,251 to 97,925	28
	97,926 to 174,850	33
	174,851 and higher	35

Tax-Exempt and Taxable Yields Compared*

Tax-Exempt Yield (%)	Taxable Equivalent Yield (%) for Tax Rate of:
	15% Tax Bracket	25% Tax Bracket	28% Tax Bracket	33% Tax Bracket	35% Tax Bracket
2.0	2.35	2.66	2.77	2.98	3.08
2.5	2.94	3.33	3.47	3.73	3.85
3.0	3.53	4.00	4.17	4.48	4.62
3.5	4.18	4.66	4.86	5.22	5.38
4.0	4.71	5.33	5.55	5.97	6.15
4.5	5.29	6.00	6.25	6.71	6.92
5.0	5.88	6.66	6.94	7.46	7.69
5.5	6.47	7.33	7.63	8.20	8.46
6.0	7.06	8.00	8.33	8.95	9.23
6.5	7.65	8.66	9.02	9.70	10.00
7.0	8.24	9.33	9.72	10.44	10.77
*Federal income tax rates only. Does not include state income tax.

If you cannot find a specific rate on the chart you can compare yields by using the following formula:

Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %)

Example: Assume you are in the 25% tax bracket, and have an account with a 4.5% tax-free yield. To get the equivalent taxable yield, divide 4.5% by 75% (100% - 25%). The taxable yield is 6.%.