> General Services Administration April 23, 2007
>
> Washington, DC 20405
>
> FEDERAL TRAVEL REGULATION Amendment 2007-02
>
> TO: Heads of Federal agencies
>
> Subject: Amendment 2007-02, FTR Case 2007-302, Relocation Income
>
> Tax (RIT) Allowance Tax Tables---2007 Update
>
> 1\. Purpose. This amendment updates the Federal, State, and
>
> Puerto Rico tax tables for calculating the relocation income tax
>
> (RIT) allowance, to reflect changes in Federal, State, and Puerto Rico
> income tax brackets and rates. The Federal, State, and Puerto Rico tax
> tables contained in this rule are for use in calculating the 2007 RIT
> allowance to be paid to relocating Federal employees.
>
> 2\. Effective date: April 9, 2007.
>
> Applicability Date: This final rule provides tax information for
> filing 2006 Federal and State income taxes.
>
> 3\. Background. Section 5724b of Title 5, United States Code, provides
> for reimbursement of substantially all Federal, State, and local
> income taxes incurred by a transferred Federal employee on taxable
> moving expense reimbursements. Policies and
>
> procedures for the calculation and payment of the RIT allowance are
> contained in the Federal Travel Regulation (41 CFR part 302-
>
> 17). GSA updates Federal, State, and Puerto Rico tax tables for
> calculating RIT allowance payments yearly to reflect changes in
> Federal, State, and Puerto Rico income tax brackets and rates. This
> amendment also provides a tax table necessary to compute the RIT
> allowance for employees who received reimbursement for relocation
> expenses in 2006. This FTR rule was published in the Federal Register
> at 72 FR 17410, April 9, 2007.
>
> 4\. Explanation of changes. Appendices A through D to Part 302-
>
> 17 are revised to reflect updates to Federal, State, and Puerto Rico
> tax tables for calculating the relocation income tax (RIT) and the
> changes in Federal, State, and Puerto Rico income tax brackets and
> rates.

![](media/image1.png){width="8.509722222222223in"
height="11.015972222222222in"}

> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> Chapter 302---Relocation Allowances
>
> Part 302-17---Relocation Income Tax (RIT) Allowance **Appendix A**
>
> **Appendix A to Part 302-17---Federal Tax Tables for RIT Allowance**
>
> **Federal Marginal Tax Rates by Earned Income Level and Filing
> Status---Tax Year 2006**
>
> (Use the following table to compute the RIT allowance for Federal
> taxes, as prescribed in §302-17.8(e)(1), on Year 1 marginal taxable
> reimbursements received during calendar year 2006.)
>
> **Marginal**
>
> **Tax Rate**
>
> **Single**

**Taxpayer**

> **Head of**

**Household**

**Married Filing Jointly/ Qualifying Widows & Widowers**

> **Married**

**Filing Separately**

> **Percent Over But Not Over Over But Not Over Over But Not Over Over
> But Not Over**
>
> 10 \$ 8,739 \$ 16,560 \$ 16,538 \$ 27,374 \$ 24,163 \$ 38,534 \$
> 12,036 \$19,194
>
> 15 16,560 41,041 27,374 59,526 38,534 86,182 19,194 43,330
>
> 25 41,041 88,541 59,526 128,605 86,182 154,786 43,330 79,441
>
> 28 88,541 175,222 128,605 203,511 154,786 224,818 79,441 114,716
>
> 33 175,222 360,212 203,511 375,305 224,818 374,173 114,716 188,184
>
> 35 360,212 \-\-- 375,305 \-\-- 374,173 \-\-- 188,184 \-\--
>
> 302-17-15
>
> FEDERAL TRAVEL REGULATION
>
> This page intentionally left blank.
>
> 302-17-16

(Amendment 2007--02)

> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> Chapter 302---Relocation Allowances
>
> Part 302-17---Relocation Income Tax (RIT) Allowance **Appendix B**
>
> **Appendix B to Part 302-17---State Tax Tables for RIT Allowance**
>
> **State Marginal Tax Rates by Earned Income Level---Tax Year 2006**
>
> (Use the following table to compute the RIT allowance for State taxes,
> as prescribed in §302-17.8(e)(2), on taxable reimbursements received
> during calendar year 2006. The rates on the first line for each State
> are for employees who are married and file jointly; if there is a
> second line for a State, it displays the rates for employees who file
> as single. For more additional information, such as State rates for
> other filing statuses, please see the 2007 State Tax Handbook, pp.
> 255-270, available from CCH Inc.,
> *http://tax.cchgroup.com/Books/default*.)
>
> **Marginal tax rates (stated in percents) for the earned income
> amounts specified in each column1, 2, 3**
>
> **State (or District) \$20,000-\$24,999 \$25,000-\$49,999
> \$50,000-\$74,999 \$75,000 and over4**
>
> Alabama 5.00 5.00 5.00 5.00
>
> Alaska 0.00 0.00 0.00 0.00
>
> Arizona 3.04 3.04 3.55 3.55
>
> If single status, married filing separately5

3.04 3.55 4.48 4.48

> Arkansas 6.00 7.00 7.00 7.00
>
> California 2.00 6.00 9.30 9.30
>
> If single status, married filing separately5

6.00 8.00 9.30 9.30

> Colorado 4.63 4.63 4.63 4.63
>
> Connecticut 5.00 5.00 5.00 5.00
>
> Delaware 5.20 5.55 5.95 5.95
>
> District of Columbia 7.00 7.00 8.70 8.70
>
> Florida 0.00 0.00 0.00 0.00
>
> Georgia 6.00 6.00 6.00 6.00
>
> Hawaii 6.40 7.60 7.90 8.25
>
> If single status, married filing separately 5

7.60 7.90 8.25 8.25

> Idaho 7.40 7.80 7.80 7.80
>
> If single status, married filing separately 5

7.80 7.80 7.80 7.80

> Illinois 3.00 3.00 3.00 3.00
>
> Indiana 3.40 3.40 3.40 3.40
>
> Iowa 6.48 7.92 8.98 8.98
>
> Kansas 6.25 6.45 6.45 6.45
>
> Kentucky 5.80 5.80 5.80 6.00
>
> Louisiana 2.00 4.00 6.00 6.00
>
> If single status, married filing separately 5

4.00 6.00 6.00 6.00

> Maine 7.00 8.50 8.50 8.50
>
> If single status, married filing separately 5

8.50 8.50 8.50 8.50

> Maryland 4.75 4.75 4.75 4.75
>
> Massachusetts 5.30 5.30 5.30 5.30
>
> Michigan 3.90 3.90 3.90 3.90
>
> Minnesota 5.35 7.05 7.05 7.05
>
> 302-17-17
>
> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> **Appendix B** FEDERAL TRAVEL REGULATION
>
> **Marginal tax rates (stated in percents) for the earned income
> amounts specified in each column1, 2, 3**
>
> **State (or District) \$20,000-\$24,999 \$25,000-\$49,999
> \$50,000-\$74,999 \$75,000 and over4**
>
> If single status, married filing separately 5

7.05 7.05 7.85 7.85

> Mississippi 5.00 5.00 5.00 5.00
>
> Missouri 6.00 6.00 6.00 6.00
>
> Montana 6.90 6.90 6.90 6.90
>
> Nebraska 3.57 6.84 6.84 6.84
>
> If single status, married filing separately 5

5.12 6.84 6.84 6.84

> Nevada 0.00 0.00 0.00 0.00
>
> New Hampshire 0.00 0.00 0.00 0.00
>
> New Jersey 1.75 1.75 3.50 5.525
>
> If single status, married filing separately5

1.75 5.525 5.525 6.370

> New Mexico 5.30 5.30 5.30 5.30
>
> New York 5.25 6.85 6.85 6.85
>
> If single status, married filing separately 5

6.85 6.85 6.85 6.85

> North Carolina 7.00 7.00 7.00 7.00
>
> If single status, married filing separately5

7.00 7.00 7.75 7.75

> North Dakota 2.10 2.10 3.92 3.92
>
> If single status, married filing separately 5

2.10 3.92 4.34 4.34

> Ohio 4.083 4.083 4.764 5.444
>
> Oklahoma 6.25 6.25 6.25 6.25
>
> Oregon 9.00 9.00 9.00 9.00
>
> Pennsylvania 3.07 3.07 3.07 3.07
>
> Rhode Island 6 3.75 7.00 7.00 7.00
>
> If single status, married filing separately 5

3.75 7.00 7.00 7.75

> South Carolina 7.00 7.00 7.00 7.00
>
> South Dakota 0.00 0.00 0.00 0.00
>
> Tennessee 0.00 0.00 0.00 0.00
>
> Texas 0.00 0.00 0.00 0.00
>
> Utah 6.98 6.98 6.98 6.98
>
> Vermont 3.60 3.60 7.20 7.20
>
> If single status, married filing separately 5

3.60 7.20 8.50 8.50

> Virginia 5.75 5.75 5.75 5.75
>
> Washington 0.00 0.00 0.00 0.00
>
> West Virginia 4.00 6.00 6.50 6.50
>
> Wisconsin 6.50 6.50 6.50 6.50
>
> Wyoming 0.00 0.00 0.00 0.00
>
> (The above table/column headings established by IRS.)
>
> 302-17-18
>
> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> Chapter 302---Relocation Allowances
>
> Part 302-17---Relocation Income Tax (RIT) Allowance **Appendix B**
>
> 1 Earned income amounts that fall between the income brackets shown in
> this table (*e.g*., \$24,999.45, \$49,999.75) should be rounded to the
> nearest dollar to determine the marginal tax rate to be used in
> calculating the RIT allowance.
>
> 2 If the earned income amount is less than the lowest income bracket
> shown in this table, the employing agency shall establish an
> appropriate marginal tax rate as provided in §302-17.8(e)(2)(ii).
>
> 3 If two or more marginal tax rates of a State overlap an income
> bracket shown in this table, then the highest of the two or more State
> marginal tax rates is shown for that entire income bracket. For more
> specific information, see the 2007 State Tax Handbook, pp. 255-270,
> CCH, Inc., *http://tax.cchgroup.com/Books/default*.
>
> 4 This is an estimate. For earnings over \$100,000, and for filing
> statuses other than those above, please consult actual tax tables. See
> 2007
>
> State Tax Handbook, pp. 255-270, CCH, Inc.,
> *http://tax.cchgroup.com/Books/default.*
>
> 5 This rate applies only to those individuals certifying that they
> will file under a single or married filing separately status within
> the states where they will pay income taxes.
>
> 6 The income tax rate for Rhode Island is 25 percent of Federal income
> tax rates, including capital gains rates and any another other special
> rates for other types of income. Rates shown as a percent of Federal
> income tax liability must be converted to a percent of income as pro-
> vided in §302-17.8(e)(2)(iii). Effective for the 2006 tax year, tax
> payers may elect to compute income tax liability based on a graduated
> rate schedule or an alternative flat tax equal to 8%.
>
> 302-17-19
>
> FEDERAL TRAVEL REGULATION
>
> This page intentionally left blank.
>
> 302-17-20

(Amendment 2007--02)

> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> Chapter 302---Relocation Allowances
>
> Part 302-17---Relocation Income Tax (RIT) Allowance **Appendix C**
>
> **Appendix C to Part 302-17---Federal Tax Tables for RIT
> Allowance---Year 2**
>
> **Estimated Ranges of Wage and Salary Income Corresponding to Federal
> Statutory Marginal**
>
> **Income Tax Rates by Filing Status In 2007**
>
> (The following table is to be used to determine the Federal marginal
> tax rate for Year 2 for computation of the RIT allowance as prescribed
> in §302-17.8(e)(1). This table is to be used for employees whose Year
> 1 occurred during calendar years 1997, 1998,
>
> 1999, 2000, 2001, 2002, 2003, 2004, 2005, or 2006.)
>
> **Marginal**
>
> **Tax Rate**
>
> **Single**

**Taxpayer**

> **Head of**

**Household**

**Married Filing Jointly/ Qualifying Widows & Widowers**

> **Married**

**Filing Separately**

> **Percent Over But Not Over Over But Not Over Over But Not Over Over
> But Not Over**
>
> 10 \$ 9,287 \$17,545 \$ 18,060 \$ 29,399 \$ 26,173 \$ 41,393 \$ 14,049
> \$ 21,441
>
> 15 17,545 43,394 29,399 62,576 41,393 91,201 21,441 45,388
>
> 25 43,394 93,101 62,576 138,856 91,201 162,117 45,388 81,616
>
> 28 93,101 183,867 138,856 216,022 162,117 233,656 81,616 119,660
>
> 33 183,867 376,616 216,022 389,045 233,656 387,765 119,660 197,483
>
> 35 376,616 \-\-- 389,045 \-\-- 387,765 \-\-- 197,483 \-\--
>
> 302-17-21
>
> FEDERAL TRAVEL REGULATION
>
> This page intentionally left blank.
>
> 302-17-22

(Amendment 2007--02)

> **AMENDMENT 2007--02 APRIL 9, 2007**
>
> Chapter 302---Relocation Allowances
>
> Part 302-17---Relocation Income Tax (RIT) Allowance **Appendix D**
>
> **Appendix D to Part 302-17---Puerto Rico Tax Tables for RIT
> Allowance**
>
> **Puerto Rico Marginal Tax Rates by Earned Income Level---Tax Year
> 2006**
>
> (Use the following table to compute the RIT allowance for Puerto Rico
> taxes, as prescribed in §302-17.8(e)(4)(i), on taxable reimbursements
> received during calendar year 2006.)
>
> **Marginal Tax Rate**

**For married person living with spouse and filing jointly, married
person not living with spouse, single person, or head of household**

**For married person living with spouse and filing separately**

> **Percent Over But Not Over Over But Not Over**
>
> 10 \$ 2,000 \$17,000 \$ 1,000 \$ 8,500
>
> 15 17,000 30,000 8,500 15,000
>
> 28 30,000 50,000 15,000 25,000
>
> 33 50,000 \-\-\-- 25,000 \-\-\--
>
> Source: *Individual Income Tax Return 2006 - Long Form*; Commonwealth
> of Puerto Rico, Department of the Treasury, P.O. Box 9022501, San
> Juan, PR 00902-2501;
> *http://www.hacienda.gobierno.pr/planillas_y_formularios/formularios.html.*
>
> 302-17-23
>
> FEDERAL TRAVEL REGULATION
>
> This page intentionally left blank.
>
> 302-17-24

(Amendment 2007--02)