# Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables—2006 Update
**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 are being updated 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 2006 RIT allowance to be paid to relocating Federal employees.
**DATES:**
*Effective Date:* This final rule was effective on January 1, 2006.
**FOR FURTHER INFORMATION CONTACT:**
The Regulatory Secretariat (VIR), Room 4035, GSA Building, Washington, DC 20405, telephone (202) 208-7312, for information pertaining to status or publication schedules. For clarification of content, contact Patrick McConnell, Office of Governmentwide Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone (202) 501-2362. Please cite FTR Amendment 2006-01, FTR case 2006-301.
**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 the 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.
This amendment provides the tax tables necessary to compute the RIT allowance for employees who are taxed in 2005 on moving expense reimbursements.
**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 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, Income taxes, Relocation allowances and entitlements, Transfers, Travel and transportation expenses.
Dated: February 9, 2006.
David L. Bibb,
Acting Administrator of General Services.
**41 CFR Part 302-17**
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**
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 302-17**
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**
| Marginal tax rate | Percent | Single taxpayer | Over | But not over | Head of household | Over | But not over | Married filing jointly/qualifying widows & widowers | Over | But not over | Married | Over | But not over |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10 | $8,712 | $16,201 | $15,989 | $26,630 | $23,519 | $37,568 | $10,897 | $18,242 | | | | | |
| 15 | 16,201 | 39,898 | 26,630 | 58,079 | 37,568 | 84,110 | 18,242 | 42,410 | | | | | |
| 25 | 39,898 | 85,748 | 58,079 | 125,252 | 84,110 | 150,301 | 42,410 | 76,165 | | | | | |
| 28 | 85,748 | 169,230 | 125,252 | 195,589 | 150,301 | 216,710 | 76,165 | 109,970 | | | | | |
| 33 | 169,230 | 348,318 | 195,589 | 360,009 | 216,710 | 360,571 | 109,970 | 182,419 | | | | | |
| 35 | 348,318 | | 360,009 | | 360,571 | | 182,419 | | | | | | |
**Appendix B to Part 302-17—State Tax Tables for RIT Allowance**
| Marginal tax rates (stated in percents) for the earned income amounts specified in each column. | State (or District) | $20,000-24,999 | $25,000-49,999 | $50,000-74,999 | $75,000 & over |
| --- | --- | --- | --- | --- | --- |
| Alabama | 5.00 | 5.00 | 5.00 | 5.00 | |
| Alaska | 0.00 | 0.00 | 0.00 | 0.00 | |
| Arizona | 3.20 | 3.20 | 3.74 | 3.74 | |
| If single status, married filing separately | 3.20 | 3.74 | 4.72 | 4.72 | |
| Arkansas | 6.00 | 7.00 | 7.00 | 7.00 | |
| California | 2.00 | 6.00 | 8.00 | 9.30 | |
| If single status, married filing separately | 6.00 | 9.30 | 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 | 7.50 | 9.00 | 9.00 | 9.00 | |
| Florida | 0.00 | 0.00 | 0.00 | 0.00 | |
| Georgia | 6.00 | 6.00 | 6.00 | 6.00 | |
| Hawaii | 6.80 | 7.60 | 7.90 | 8.25 | |
| If single status, married filing separately | 7.60 | 7.90 | 8.25 | 8.25 | |
| Idaho | 7.40 | 7.80 | 7.80 | 7.80 | |
| If single status, married filing separately | 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 | 3.50 | 6.25 | 6.45 | 6.45 | |
| If single status, married filing separately | 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 separately | 4.00 | 6.00 | 6.00 | 6.00 | |
| Maine | 7.00 | 8.50 | 8.50 | 8.50 | |
| If single status, married filing separately | 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 separately | 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 separately | 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 separately | 1.75 | 5.525 | 5.525 | 6.370 | |
| New Mexico | 6.00 | 6.00 | 6.00 | 6.00 | |
| New York | 5.25 | 6.85 | 6.85 | 6.85 | |
| If single status, married filing separately | 6.85 | 6.85 | 6.85 | 6.85 | |
| North Carolina | 7.00 | 7.00 | 7.00 | 7.00 | |
| If single status, married filing separately | 7.00 | 7.00 | 7.75 | 7.75 | |
| North Dakota | 2.10 | 2.10 | 3.92 | 3.92 | |
| If single status, married filing separately | 2.10 | 3.92 | 4.34 | 4.34 | |
| Ohio | 4.27 | 4.983 | 4.983 | 5.693 | |
| Oklahoma | 6.65 | 6.65 | 6.65 | 6.65 | |
| Oregon | 9.00 | 9.00 | 9.00 | 9.00 | |
| Pennsylvania | 3.07 | 3.07 | 3.07 | 3.07 | |
| Rhode Island | 25.00 | 25.00 | 25.00 | 25.00 | |
| 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 | 7.00 | 7.00 | 7.00 | 7.00 | |
| Vermont | 3.60 | 3.60 | 7.20 | 7.20 | |
| If single status, married filing separately | 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**
| Marginal tax rate | Percent | Single taxpayer | Over | But not over | Head of household | Over | But not over | Married filing jointly/qualifying widows & widowers | Over | But not over | Married filing separately | Over | But not over |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10 | $8,739 | $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 D to Part 302-17—Puerto Rico Tax Tables for RIT Allowance**
| Marginal tax rate | Percent | For married person living with spouse and filing | Over | But not over | For married person living with spouse and filing separately | Over | But not over |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 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 | | | | |