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Rule

Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables-2007 Update

Action

Final Rule.

Summary

This rule 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.

 

Table of Contents Back to Top

Tables Back to Top

DATES: Back to Top

Effective Date: This final rule is effective April 9, 2007.

Applicability date: This final rule provides tax information for filing 2006 Federal and State income taxes.

FOR FURTHER INFORMATION CONTACT: Back to Top

The Regulatory Secretariat (VIR), Room 4035, GSA Building, Washington, DC 20405, telephone (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Ed Davis, Office of Governmentwide Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone (202) 208-7638. Please cite FTR Amendment 2007-02, FTR case 2007-302.

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 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.

B. Executive Order 12866 Back to Top

This regulation is excepted from the definition of “regulation” or “rule” under Section 3(d)(3) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993 and, therefore, was not subject to review under Section 6(b) of that Executive Order.

C. Regulatory Flexibility Act Back to Top

This final rule is not required to be published in the Federal Register for notice and comment as per the exemption specified in 5 U.S.C. 553(a)(2); 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 this final rule does 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 Part 302-17 Back to Top

Dated: March 23, 2007.

Lurita Doan,

Administrator of General Services.

begin regulatory text

For the reasons set forth in the preamble, under 5 U.S.C. 5738, GSA amends 41 CFR part 302-17 as set forth below:

PART 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 Appendices 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 IncomeLevel and Filing Status—Tax Year 2006 Back to Top
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
[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]
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

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 2006 Back to Top
Marginal tax rates (stated in percents) for the earned income amounts specified in each column.1 2 3
State (or District) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000 over4
[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.]
[The above table/column headings established by IRS.]
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).
3If 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.
4This 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.
5This 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.
6The 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 provided 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%.
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 separately5 7.60 7.90 8.25 8.25
Idaho 7.40 7.80 7.80 7.80
If single status, married filing separately5 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 separately5 4.00 6.00 6.00 6.00
Maine 7.00 8.50 8.50 8.50
If single status, married filing separately5 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
If single status, married filing separately5 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 separately5 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 separately5 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 separately5 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 Island6 3.75 7.00 7.00 7.00
If single status, married filing separately5 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 separately5 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

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

Estimated Ranges of Wage and Salary Income Corresponding to FederalStatutory Marginal Income Tax Rates by Filing Status In 2007 Back to Top
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
[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]
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

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 2006 Back to Top
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
Over But not over Over But not over
[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.]
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.
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
end regulatory text

[FR Doc. E7-6729 Filed 4-6-07; 8:45 am]

BILLING CODE 6820-14-P

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