2005 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 2005:

Individual Tax Rate Schedules for 2005
Filing Status	Taxable Income ($)	Marginal Tax Bracket Rate (%)
Married Filing Jointly	0 to 14,600	10
	14,601 to 59,400	15
	59,401 to 119,950	25
	119,951 to 182,800	28
	182,801 to 326,450	33
	326,451 and higher	35
Head of Household	0 to 10,450	10
	10,451 to 39,800	15
	39,801 to 102,800	25
	102,801 to 166,450	28
	166,451 to 326,450	33
	326,451 and higher	35
Single	0 to 7,300	10
	7,301 to 29,700	15
	29,701 to 71,950	25
	71,951 to 150,150	28
	150,151 to 326,450	33
	326,451 and higher	35
Married Filing Separately	0 to 7,300	10
	7,301 to 29,700	15
	29,701 to 59,975	25
	59,976 to 91,400	28
	91,401 to 163,225	33
	163,226 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.%.