2006 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 2006:

Individual Tax Rate Schedules for 2006
Filing Status	Taxable Income ($)	Marginal Tax Bracket Rate (%)
Married Filing Jointly	0 to 15,100	10
	15,101 to 61,300	15
	61,301 to 123,700	25
	123,701 to 188,450	28
	188,451 to 336,550	33
	336,551 and higher	35
Head of Household	0 to 10,750	10
	10,751 to 41,050	15
	41,051 to 106,000	25
	106,001 to 171,650	28
	171,651 to 336,550	33
	336,551 and higher	35
Single	0 to 7,550	10
	7,551 to 30,650	15
	30,651 to 74,200	25
	74,201 to 154,800	28
	154,801 to 336,550	33
	336,551 and higher	35
Married Filing Separately	0 to 7,550	10
	7,551 to 30,650	15
	30,651 to 61,850	25
	61,851 to 94,225	28
	94,226 to 168,275	33
	168,276 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.%.