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:
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.%.


  1. Rutgers
  2. Executive Dean of Agriculture and Natural Resources
  3. School of Environmental and Biological Sciences