2004 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 2004:

Individual Tax Rate Schedules for 2004
Filing Status	Taxable Income ($)	Marginal Tax Bracket Rate (%)
Married Filing Jointly	0 to 14,300	10
	14,301 to 58,100	15
	58,101 to 117,250	25
	117,251 to 178,650	28
	178,651 to 319,100	33
	319,101 and higher	35
Head of Household	0 to 10,200	10
	10,201 to 38,900	15
	38,901 to 100,500	25
	100,501 to 162,700	28
	162,701 to 319,100	33
	319,101 and higher	35
Single	0 to 7,150	10
	7,151 to 29,050	15
	29,051 to 70,350	25
	70,351 to 146,750	28
	146,751 to 319,100	33
	319,101 and higher	35
Married Filing Separately	0 to 7,150	10
	7,151 to 29,050	15
	29,051 to 58,625	25
	58,626 to 89,325	28
	89,326 to 159,550	33
	159,551 and higher	35

Tax-Exempt and Taxable Yields Compared*
Tax-Exempt Yield (%)	Taxable Equivalent Yield (%) for Tax Rate of:
Tax-Exempt Yield (%)	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.%.