Tax Guide: Marginal Tax Rates

DT OnLine Home Tax Guide Tax ToolsMarginal tax rates
Next | Previous | Search | Tax Guide Contents

Tax Tools
Marginal Tax Rates

Important!

We've posted our updated tax planning guide.
Click here for planning tips and strategies for 1999 and beyond.

Computation of Marginal 1997 Regular Tax Brackets
for Employees (Married Filing Jointly)

1. Assumes state income tax rate is 0%

Taxable Income

Maximum possible 1997 marginal rate on wage income:

greater than $271,050

less than $271,050 but greater than $151,750

less than $151,750 but greater than $99,600

Federal tax bracket

39.60%

36.00%

31.00%

Effect of 3% phaseout of itemized deductions

1.19%

1.08%

0.93%

State income tax bracket

0.00%

Subtract federal benefit of state tax

0.00%

Hospital insurance tax

1.45%

Total maximum marginal rate -- wages

42.24%

38.53%

33.38%

Total maximum marginal rate -- non-wage income

40.79%

37.08%

31.93%

2. Assumes state income tax rate is 5%

Taxable
Income

Maximum possible 1997 marginal rate on wage income:

greater than $271,050

less than $271,050 but greater than $151,750

less than $151,750 but greater than $99,600

Federal tax bracket

39.60%

36.00%

31.00%

Effect of 3% phaseout of itemized deductions

1.19%

1.08%

0.93%

Subtract federal benefit of state tax

5.00%

Subtract federal benefit of state tax

-1.98%

-1.80%

-1.55%

Hospital insurance tax

1.45%

Total maximum marginal rate -- wages

45.26%

41.73%

36.83%

Total maximum marginal rate -- non-wage income

43.81%

40.28%

35.38%

Tax Tools menu -->