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Rule

Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables (2003 Update)

Action

Final Rule.

Summary

The Federal, State, and Puerto Rico tax tables for calculating the relocation income tax (RIT) allowance must be updated yearly to reflect changes in Federal, State, andPuerto Rico income tax brackets and rates. The Federal,State, and Puerto Rico tax tables contained in this rule are for calculating the 2003 RIT allowance to be paid to relocating Federal employees.

 

Table of Contents Back to Top

Tables Back to Top

DATES: Back to Top

This final rule is effective January 1, 2003, and applies for RIT allowance payments made on or after January 1, 2003.

FOR FURTHER INFORMATION CONTACT: Back to Top

The RegulatorySecretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 208-7312, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Calvin L. Pittman, Office of GovernmentwidePolicy, Travel Management Policy, at (202) 501-1538. Please cite FTR case 2003-302, FTR Amendment 2003-01.

SUPPLEMENTARY INFORMATION: Back to Top

A. Background Back to Top

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 a RIT allowance are contained in the Federal Travel Regulation (41 CFR part 302-17). The Federal, State, and Puerto Rico tax tables for calculating RIT allowance payments are updated yearly to reflect changes in Federal, State, and Puerto Rico income tax brackets and rates.

B. Executive Order 12866 Back to Top

This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act Back to Top

This final rule is not required to be published in the Federal Register for notice and comment; therefore, the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., does not apply.

D. Paperwork Reduction Act Back to Top

The Paperwork Reduction Act does not apply because the changes to the FTR do not impose recordkeeping or information collection requirements, or the collection of information from offerors, contractors, or members of the public that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory Enforcement Fairness Act Back to Top

This final rule is also exempt from congressional review prescribed under 5 U.S.C. 801 since it relates solely to agency management and personnel.

List of Subjects in 41 CFR Chapter 302 Back to Top

Dated: February 6, 2003.

Stephen A. Perry,

Administrator of General Services.

For the reasons set forth in the preamble, under 5 U.S.C. 5701-5709, GSA amends 41 CFR part 302-17 as set forth below:

begin regulatory text

CHAPTER 302-17—RELOCATION INCOME TAX (RIT) ALLOWANCE Back to Top

1.The authority citation for 41 CFR part 302-17 continues to read as follows:

Authority:

5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586.

2.Revise Appendixes A, B, C, and D to part 302-17 to read as follows:

Appendix A to Part 302-17—Federal Tax Tables for RIT Allowance Back to Top

Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2002 Back to Top

The following table is to be used to determine the Federal marginal tax rate for Year 1 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 year 2002.

Marginal tax rate Single taxpayer Heads 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 $8,137 $14,130 $14,743 $24,811 $20,219 $31,833 $11,770 $16,693
15 14,130 37,040 24,811 53,556 31,833 67,914 16,693 33,839
27 37,040 80,140 53,556 118,624 67,914 139,528 33,839 69,420
30 80,140 158,281 118,624 184,826 139,528 201,236 69,420 105,672
35 158,281 326,339 184,826 337,037 201,236 335,297 105,672 178,317
38.6 326,339 337,037 335,297 178,317

Appendix B to Part 302-17—State Tax Tables For RIT Allowance Back to Top

State Marginal Tax Rates by Earned Income Level—Tax Year 2002 Back to Top

The following table is to be used to determine the State marginal tax rates for calculation of the RIT allowance as prescribed in § 302-17.8(e)(2). This table is to be used for employees who received covered taxable reimbursements during calendar year 2002.

Marginal Tax Rates (Stated in Percents) for the Earned Income Amounts Specified in Each Column 1, 2 Back to Top
State (or district) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000 over
1Earned 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.
2If 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).
3This rate applies only to those individuals certifying that they will file under a single status within the States where they will pay income taxes. All other taxpayers, regardless of filing status, will use the other rate shown.
4The income tax rate for Rhode Island is 25 percent of Federal income tax liability for all employees. Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided in § 302-17.8(e)(2)(iii).
5The income tax rate for Vermont is 24 percent of Federal income tax liability for all employees. Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided in § 302-17.8(e)(2)(iii).
Alabama 5 5 5 5
Alaska 0 0 0 0
Arizona 2.87 3.2 3.74 5.04
Arkansas 4.5 7 7 7
If single status3 6 7 7 7
California 4 6 8 9.3
If single status3 6 8 9.3 9.3
Colorado 4.63 4.63 4.63 4.63
Connecticut 4.5 4.5 4.5 4.5
Delaware 5.2 5.55 5.95 5.95
District of Columbia 7 9 9 9
Florida 0 0 0 0
Georgia 6 6 6 6
Hawaii 6.4 7.6 8.25 8.25
If single status3 7.6 8.25 8.25 8.25
Idaho 7.4 7.8 7.8 7.8
Illinois 3 3 3 3
Indiana 3.4 3.4 3.4 3.4
Iowa 6.48 7.92 8.98 8.98
If single status3 6.8 7.92 8.98 8.98
Kansas 3.5 6.25 6.45 6.45
If single status3 6.25 6.45 6.45 6.45
Kentucky 6 6 6 6
Louisiana 2 4 4 6
If single status3 4 4 6 6
Maine 4.5 7 8.5 8.5
If single status3 7 8.5 8.5 8.5
Maryland 4.75 4.75 4.75 4.75
Massachusetts 5.3 5.3 5.3 5.3
Michigan 4.1 4.1 4.1 4.1
Minnesota 5.35 7.05 7.05 7.85
If single status3 7.05 7.05 7.85 7.85
Mississippi 5 5 5 5
Missouri 6 6 6 6
Montana 8 9 10 11
Nebraska 3.49 5.01 6.68 6.68
If single status3 5.01 6.68 6.68 6.68
Nevada 0 0 0 0
New Hampshire 0 0 0 0
New Jersey 1.4 1.75 2.45 6.37
If single status3 1.4 3.5 5.525 6.37
New Mexico 3.2 6 7.1 8.2
If single status3 6 7.1 7.9 8.2
New York 4.5 5.9 6.85 6.85
If single status3 5.25 6.85 6.85 6.85
North Carolina 6 7 7 7.75
North Dakota 2.1 3.92 4.34 5.04
If single status3 2.1 3.92 5.04 5.04
Ohio 3.715 4.457 5.201 6.9
Oklahoma 9 10 10 10
If single status3 10 10 10 10
Oregon 9 9 9 9
Pennsylvania 2.8 2.8 2.8 2.8
Rhode Island4 25 25 25 25
South Carolina 7 7 7 7
South Dakota 0 0 0 0
Tennessee 0 0 0 0
Texas 0 0 0 0
Utah 7 7 7 7
Vermont5 24 24 24 24
Virginia 5.75 5.75 5.75 5.75
Washington 0 0 0 0
West Virginia 4 4.5 6 6.5
Wisconsin 6.15 6.5 6.5 6.75
Wyoming 0 0 0 0

Appendix C to Part 302-17—Federal Tax Tables for RIT Allowance—Year 2 Back to Top

Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2003 Back to Top

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 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2001, or 2002.

Marginal tax rate Single taxpayer Heads 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 $8,274 $14,314 $15,005 $25,136 $20,977 $32,559 $10,958 $16,536
15 14,314 37,771 25,136 54,712 32,559 69,722 16,536 34,507
27 37,771 81,890 54,712 122,788 69,722 142,842 34,507 70,442
30 81,890 162,802 122,788 193,703 142,842 206,675 70,442 107,631
35 162,802 334,763 193,703 350,138 206,675 343,919 107,631 181,753
38.6 334,763 350,138 343,919 181,753

Appendix D to Part 302-17—Puerto Rico Tax Tables for RIT Allowance Back to Top

Puerto Rico Marginal Tax Rates by Earned Income Level—Tax Year 2002 Back to Top

The following table is to be used to determine the PuertoRico marginal tax rate for computation of the RIT allowance as prescribed in § 302-17.8(e)(4)(i).

Marginal tax rate Single filing status Any other filing status
Percent Over But not over Over But not over
10 $25,000
15 $25,000
28 $25,000 50,000 $25,000 50,000
33 50,000 $50,000
end regulatory text

[FR Doc. 03-3882 Filed 2-18-03; 8:45 am]

BILLING CODE 6820-24-P

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