Yesterday the IRS announced its inflation adjustments for the 2007 tax year. As you know, US income tax rates are graduated. Everyone pays the same amount on their first dollar of income. The percentage you pay on your last dollar of income, however, depends on what your total income is.

The income tax rate you pay on your last few dollars of your income is called your IRS tax bracket or your marginal tax rate.

If you can move income from year-to-year, you will pay the least in taxes if you move your income to the year in which you are in the lowest tax bracket and have the lowest marginal tax rate.

The tax-deferral feature of US Savings Bonds gives you this kind of flexibility. Within the range of the 30-year-life of a Savings Bond, you can choose when to redeem the bond and pay the income tax on the interest you've earned.

The following table of IRS income tax rates will help you determine your tax bracket or marginal tax rate. You need to know your filing status and your taxable income.

Your taxable income is not the same as your total income, but is your income after deductions and exemptions. Look for the line on your tax return labeled Taxable Income.