# Federal Travel Regulation; Relocation Income Tax Allowance Tax Tables (2004 Update)
**AGENCY:**
Office of Governmentwide Policy, General Services Administration (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 2004 RIT allowance to be paid to relocating Federal employees.
**DATES:**
*Effective Date:* January 1, 2004.
**FOR FURTHER INFORMATION CONTACT:**
The Regulatory Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 208-7312, for information pertaining to status or publication schedules. For clarification of content, contact Sallie Sherertz, Office of Governmentwide Policy, Travel Management Policy, at (202) 219-3455. Please cite FTR Amendment 2004-01, FTR case 2004-301.
**SUPPLEMENTARY INFORMATION:**
**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 302-17). 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**
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**
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 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**
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**
Government employees, Travel and transportation expenses.
Dated: February 27, 2004.
Stephen A. Perry,
Administrator of General Services.
**41 CFR Part 32**
For the reasons set forth in the preamble, under 5 U.S.C. 5701-5739, GSA amends 41 CFR part 302-17 as set forth below:
**Chapter 302 Relocation Allowances**
**PART 302-17—RELOCATION INCOME TAX (RIT) ALLOWANCE**
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.
**41 CFR Part 302**
2. Revise Appendixes A, B, and C to part 302-17 to read as follows:
**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 2003**
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 2003.
| 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 | 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 B to Part 302-17—State Tax Tables For RIT Allowance**
**State Marginal Tax Rates by Earned Income Level—Tax Year 2003**
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 2003.
| 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 | 3.20 | 3.74 | 4.72 | 5.04 |
| Arkansas | 6 | 7 | 7 | 7 |
| California | 2 | 4 | 8 | 9.3 |
| If single status | 6 | 8 | 9.3 | 9.3 |
| Colorado | 4.63 | 4.63 | 4.63 | 4.63 |
| Connecticut | 5 | 5 | 5 | 5 |
| Delaware | 5.2 | 5.55 | 5.95 | 5.95 |
| District of Columbia | 7.5 | 9.3 | 9.3 | 9.3 |
| Florida | 0 | 0 | 0 | 0 |
| Georgia | 6 | 6 | 6 | 6 |
| Hawaii | 6.4 | 7.6 | 8.25 | 8.25 |
| If single status | 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 |
| Kansas | 3.5 | 6.25 | 6.45 | 6.45 |
| If single status | 6.25 | 6.45 | 6.45 | 6.45 |
| Kentucky | 6 | 6 | 6 | 6 |
| Louisiana | 4 | 6 | 6 | 6 |
| Maine | 7 | 8.5 | 8.5 | 8.5 |
| If single status | 8.5 | 8.5 | 8.5 | 8.5 |
| Maryland | 4 | 4 | 4 | 4 |
| Massachusetts | 5.3 | 5.3 | 5.3 | 5.3 |
| Michigan | 4 | 4 | 4 | 4 |
| Minnesota | 5.35 | 7.05 | 7.05 | 7.05 |
| If single status | 7.05 | 7.05 | 7.85 | 7.85 |
| Mississippi | 5 | 5 | 5 | 5 |
| Missouri | 6 | 6 | 6 | 6 |
| Montana | 7 | 9 | 10 | 10 |
| Nebraska | 3.57 | 5.12 | 6.84 | 6.84 |
| If single status | 5.12 | 6.84 | 6.84 | 6.84 |
| Nevada | 0 | 0 | 0 | 0 |
| New Hampshire | 0 | 0 | 0 | 0 |
| New Jersey | 1.75 | 1.75 | 2.45 | 3.5 |
| If single status | 1.75 | 3.5 | 5.525 | 6.37 |
| New Mexico | 4.7 | 6 | 7.1 | 7.7 |
| If single status | 6 | 7.1 | 7.7 | 7.7 |
| New York | 5.25 | 5.9 | 6.85 | 6.85 |
| If single status | 6.85 | 6.85 | 6.85 | 6.85 |
| North Carolina | 7 | 7 | 7 | 7 |
| North Dakota | 2.1 | 2.1 | 3.92 | 3.92 |
| If single status | 2.1 | 2.1 | 3.92 | 4.34 |
| Ohio | 4.457 | 4.457 | 5.201 | 5.201 |
| Oklahoma | 7 | 7 | 7 | 7 |
| Oregon | 9 | 9 | 9 | 9 |
| Pennsylvania | 2.8 | 2.8 | 2.8 | 2.8 |
| Rhode Island | 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 |
| Vermont | 3.6 | 3.6 | 7.2 | 8.5 |
| If single status | 3.6 | 7.2 | 7.2 | 8.5 |
| Virginia | 5.75 | 5.75 | 5.75 | 5.75 |
| Washington | 0 | 0 | 0 | 0 |
| West Virginia | 4 | 4.5 | 6 | 6.5 |
| Wisconsin | 6.5 | 6.5 | 6.5 | 6.5 |
| Wyoming | 0 | 0 | 0 | 0 |
**Appendix C to Part 302-17—Federal Tax Tables For RIT Allowance-Year 2**
**Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2004**
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 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, or 2003.
| 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 | $8,486 | $15,852 | $15,539 | $25,991 | $22,763 | $36,688 | $10,614 | $17,891 | | | | | |
| 15 | 15,852 | 39,093 | 25,991 | 56,668 | 36,688 | 82,625 | 17,891 | 41,386 | | | | | |
| 25 | 39,093 | 84,081 | 56,668 | 123,629 | 82,625 | 147,439 | 41,386 | 74,492 | | | | | |
| 28 | 84,081 | 166,123 | 123,629 | 193,801 | 147,439 | 212,158 | 74,492 | 108,134 | | | | | |
| 33 | 166,123 | 341,553 | 193,801 | 354,536 | 212,158 | 352,775 | 108,134 | 179,237 | | | | | |
| 35 | 341,553 | | 354,536 | | 352,775 | | 179,237 | | | | | | |
**41 CFR Part 302**
3. Amend the heading of Appendix D to part 302-17 by removing “2002” and adding “2003” in its place.