# Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables
**AGENCY:**
Office of Governmentwide Policy, GSA.
**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, and Puerto Rico income tax brackets and rates. The Federal, State, and Puerto Rico tax tables contained in this rule are for calculating the 2002 RIT allowance to be paid to relocating Federal employees.
**DATES:**
This final rule is effective January 1, 2002, and applies for RIT allowance payments made on or after January 1, 2002.
**FOR FURTHER INFORMATION CONTACT:**
Calvin L. Pittman, Office of Governmentwide Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone (202) 501-1538.
**SUPPLEMENTARY INFORMATION:**
This amendment provides the tax tables necessary to compute the relocation income tax (RIT) allowance for employees who are taxed in 2002 on moving expense reimbursements.
**A. 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 a RIT allowance are contained in the Federal Travel Regulation (41 CFR part 302-11). 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**
The General Services Administration (GSA) has determined that this final rule is not a significant regulatory action for the purposes of Executive Order 12866 of September 30, 1993.
**C. Regulatory Flexibility Act**
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**
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 which 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**
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 302-11**
Government employees, Income taxes, Relocation allowances and entitlements, Transfers, Travel and transportation expenses.
For the reasons set forth in the preamble, 41 CFR part 302-11 is amended as follows:
**41 CFR Part 302**
**PART 302—RELOCATION INCOME TAX (RIT) ALLOWANCE**
1. The authority citation for 41 CFR part 302-11 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. Appendixes A, B, C, and D to part 302-11 currently in effect are amended by adding the following tables at the end of each appendix, respectively, to read as follows:
**Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2001**
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 § 302-11.8(e)(1). The following table is to be used for employees whose Year 1 occurred during calendar year 2001:
| Marginal Tax Rate | Percent | Single Taxpayer | Over | But Not Over | Heads of Household | Over | But Not Over | Married Filing Jointly/Qualifying Widows & Widowers | Over | But Not Over | Married Filing Separately | Over | But Not Over |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 15 | $7,582 | $35,363 | $13,905 | $51,016 | $18,061 | $65,011 | $8,742 | $32,028 | | | | | |
| 28 | 35,363 | 77,472 | 51,016 | 116,612 | 65,011 | 133,818 | 32,028 | 65,470 | | | | | |
| 31 | 77,472 | 154,524 | 116,612 | 180,660 | 133,818 | 193,566 | 65,470 | 99,363 | | | | | |
| 36 | 154,524 | 317,548 | 180,660 | 324,522 | 193,566 | 323,455 | 99,363 | 169,100 | | | | | |
| 39.6 | 317,548 | | 324,522 | | 323,455 | | 169,100 | | | | | | |
**State Marginal Tax Rates by Earned Income Level—Tax Year 2001**
The following table is to be used to determine the State marginal tax rates for calculation of the RIT allowance as prescribed in § 301-11.8(e)(2). The following table is to be used for employees who received covered taxable reimbursements during calendar year 2001:
| Marginal tax rates (stated in percents) for the earned income amounts specified in each column.\\1-2\\ | State (or District) | $20,000-$24,999 | $25,000-$49,999 | $50,000-$74,999 | $75,000 & Over |
| --- | --- | --- | --- | --- | --- |
| 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 status | 6 | 7 | 7 | 7 | |
| California | 2 | 4 | 8 | 9.3 | |
| If single status | 4 | 8 | 8 | 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 | 7.5 | 9.5 | 9.5 | 9.5 | |
| Florida | 0 | 0 | 0 | 0 | |
| Georgia | 6 | 6 | 6 | 6 | |
| Hawaii | 6.9 | 7.9 | 8.5 | 8.5 | |
| If single status | 7.9 | 8.5 | 8.5 | 8.5 | |
| 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 status | 6.8 | 7.92 | 8.98 | 8.98 | |
| Kansas | 3.5 | 6.25 | 6.25 | 6.45 | |
| If single status | 6.25 | 6.45 | 6.45 | 6.45 | |
| Kentucky | 6 | 6 | 6 | 6 | |
| Louisiana | 2 | 4 | 4 | 6 | |
| If single status | 4 | 4 | 6 | 6 | |
| Maine | 4.5 | 7 | 8.5 | 8.5 | |
| If single status | 7 | 8.5 | 8.5 | 8.5 | |
| Maryland | 4.8 | 4.8 | 4.8 | 4.8 | |
| Massachusetts | 5.85 | 5.85 | 5.85 | 5.85 | |
| Michigan | 4.2 | 4.2 | 4.2 | 4.2 | |
| Minnesota | 5.36 | 7.05 | 7.05 | 7.85 | |
| If single status | 7.05 | 7.05 | 7.05 | 7.85 | |
| Mississippi | 5 | 5 | 5 | 5 | |
| Missouri | 6 | 6 | 6 | 6 | |
| Montana | 9 | 10 | 11 | 11 | |
| Nebraska | 3.49 | 5.01 | 6.68 | 6.68 | |
| If single status | 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 status | 1.4 | 3.5 | 5.525 | 6.37 | |
| New Mexico | 3.2 | 6 | 7.1 | 8.2 | |
| If single status | 6 | 7.1 | 7.9 | 8.2 | |
| New York | 4 | 5.25 | 6.85 | 6.85 | |
| If single status | 5.25 | 6.85 | 6.85 | 6.85 | |
| North Carolina | 6 | 7 | 7 | 7.75 | |
| North Dakota | 6.67 | 9.33 | 12 | 12 | |
| If single status | 8 | 10.67 | 12 | 12 | |
| Ohio | 3.715 | 4.457 | 5.201 | 6.9 | |
| Oklahoma | 5 | 6.75 | 6.75 | 6.75 | |
| If single status | 6.75 | 6.75 | 6.75 | 6.75 | |
| Oregon | 9 | 9 | 9 | 9 | |
| Pennsylvania | 2.8 | 2.8 | 2.8 | 2.8 | |
| Rhode Island | 25.5 | 25.5 | 25.5 | 25.5 | |
| 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 | |
| Vermont | 24 | 24 | 24 | 24 | |
| Virginia | 5 | 5.75 | 5.75 | 5.75 | |
| Washington | 0 | 0 | 0 | 0 | |
| West Virginia | 4 | 4.5 | 6 | 6.5 | |
| Wisconsin | 6.5 | 6.75 | 6.75 | 6.75 | |
| Wyoming | 0 | 0 | 0 | 0 | |
**Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2002**
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 § 302-11.8(e)(1). The following table is to be used for employees whose Year 1 occurred during calendar years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000 or 2001:
| Marginal tax rate Percent | Single Taxpayer | Over | But not over | Heads of Household | Over | But not over | Married Filing Jointly/Qualifying Widows & Widowers | Over | But not over | Married filing separately | 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 | | | | | |
**Puerto Rico Marginal Tax Rates by Earned Income Level—Tax Year 2001**
The following table is to be used to determine the Puerto Rico marginal tax rate for computation of the RIT allowance as prescribed in § 302-11.8(e)(4)(i):
| Marginal Tax Rate Percent | Single Filing Status | Over | But Not Over | Any Other Filing Status | Over | But Not Over |
| --- | --- | --- | --- | --- | --- | --- |
| 11 | | | | $25,000 | | |
| 16.5 | | $25,000 | | | | |
| 29.5 | $25,000 | 50,000 | $25,000 | 50,000 | | |
| 33 | 50,000 | | 50,000 | | | |
Dated: January 25, 2002.
Stephen A. Perry,
Administrator of General Services.