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:
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