Briefing Rooms

Farm Household Economics and Well-Being: Federal Taxes and Households

Applicable tax rates and other provisions after the American Jobs Creation Act of 2004

Provisions	2003	2004	2005	2006	2007	2008	2009	2010	2011
Income tax rates
Bracket
10% Single	$7,000	$7,150	$7,300	$7,300¹	$7,300¹	$7,300¹	$7,300¹	$7,300¹	0
10% Joint	$14,000	$14,300	$14,600	$14,600¹	$14,600¹	$14,600¹	$14,600¹	$14,600¹	0
27%	25%	25%	25%	25%	25%	25%	25%	25%	28%
30%	28%	28%	28%	28%	28%	28%	28%	28%	31%
35%	33%	33%	33%	33%	33%	33%	33%	33%	36%
38.6%	35%	35%	35%	35%	35%	35%	35%	35%	39.6%
AMT exemption amount
Single	$40,250	$40,250	$40,250	$33,750	$33,750	$33,750	$33,750	$33,750	$33,750
Joint	$58,000	$58,000	$58,000	$45,000	$45,000	$45,000	$45,000	$45,000	$45,000
Marriage penalty relief
Standard deduction²	200%	200%	200%	200%	200%	200%	200%	200%	167%
15% bracket²	200%	200%	200%	200%	200%	200%	200%	200%	167%
Child Tax Credit	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$500
Qualifying dividend rates
10/15% bracket	5%	5%	5%	5%	5%	0%	10-15%	10-15%	15%
Higher brackets	15%	15%	15%	15%	15%	15%	28-39.6%	28-39.6%	28-39.6%
Long-term capital gains
10/15% bracket	5%³	5%	5%	5%	5%	0%	10%⁴	10%⁴	10%⁴
Higher brackets	15%³	15%	15%	15%	15%	15%	20%⁴	20%⁴	20%⁴
Capital cost recovery
Bonus depreciation	30/50%⁵	50%	0%	0%	0%	0%	0%	0%	0%
Expense amount	$100,000	$102,000	$105,000	$105,000¹	$105,000¹	$25,000	$25,000	$25,000	$25,000
1/ Adjusted for inflation. 2/ Amounts applicable to joint filers as a percentage of amounts applicable to single filers. 3/ Applies to gains recognized on or after May 6, 2003. 4/ Gains on 5-year property is taxed at 8 and 18 percent. 5/ Applicable to eligible purchase after May 5, 2003.

For more information, contact: Ron Durst

Web administration: webadmin@ers.usda.gov

Updated date: November 30, 2006