Tax Rates   2008 Individual Tax Rates & Limits    2008 Tax Rate - Single Taxpayers - Standard Deduction $5,450 10% $ 0 - 8,025 15% 8,025 - 32,550 25% 32,550 - 78,850 28% 78,850 - 164,550 33% 164,550 - 357,700 35% Over 357,700 2008 Tax Rate - Married Jointly & Surviving Spouses-Standard Deduction $10,900 10% $ 0 - 16,050 15% 16,050 - 65,100 25% 65,100 - 131,450 28% 131,450 - 200,300 33% 200,300 - 357,700 35% Over 357,700 2008 Tax Rate - Married Filing Separately - Standard Deduction $5,450 10% $ 0 - 8,025 15% 8,025 - 32,550 25% 32,550 - 65,725 28% 65,725 - 100,150 33% 100,150 - 178,850 35% Over 178,850 2008 Tax Rate - Head of Household - Standard Deduction $8,000 10% $ 0 - 11,450 15% 11,450 - 43,650 25% 43,650 - 112,650 28% 112,650 - 182,400 33% 182,400 - 357,700 35% Over 357,700 2008 Tax Rate - Estates & Trusts 15% 1 - 2,200 25% 2,201 - 5,150 28% 5,151 - 7,850 33% 7,851 - 10,700 35% Over 10,700     Miscellaneous 2008 Tax Rates Business equipment expensing deduction $250,000 Maximum deduction for interest on higher education loans $2,500 Prior-year safe harbor for estimated taxes of higher-income 110% of your 2007 tax liability Standard mileage rate for business driving January 1 - June 30               50.0 cents July 1 - December 31            58.5 cents Unearned income maximum for children before kiddie tax applies $900 Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket 0% Maximum capital gains tax rate for taxpayers above the 15% bracket 15% Capital gains tax rate for unrecaptured Sec. 1250 gains 25% Capital gains tax rate on collectibles 28% Maximum employee contribution to SIMPLE retirement plans $10,500 if under age 50 $13,000 if 50 or older 401(k) maximum employee contribution limit $15,500 if under age 50 $20,500 if 50 or older Self-employed health insurance deduction 100% Estate tax exemption $2,000,000 Annual Exclusion for Gifts $12,000