Interest paid on most HELOC loans is tax deductible (consult your tax advisor). Use the table below to determine your marginal tax rate (MTR).

You can then determine the effective interest paid on your HELOC loan using the HELOC Loan Effective Interest Rate Table.  Note that the tax rates on this page are for the 2006 tax year (returns filed in 2007).

  

Schedule X Single

If taxable income is over– But not over– The tax is:
$0 $7,550 10% of the amount over $0
$7,550 $30,650 $755 plus 15% of the amount over 7,550
$30,650 $74,200 $4,220.00 plus 25% of the amount over 30,650
$74,200 $154,800 $15,107.50 plus 28% of the amount over 74,200
$154,800 $336,550 $37,675.50 plus 33% of the amount over 154,800
$336,550 no limit $97,653.00 plus 35% of the amount over 336,550

Schedule Y-1 Married Filing Jointly or Qualifying Widow(er)

If taxable income is over– But not over– The tax is:
$0 $15,100 10% of the amount over $0
$15,100 $61,300 $1,510.00 plus 15% of the amount over 15,100
$61,300 $123,700 $8,440.00 plus 25% of the amount over 61,300
$123,700 $188,450 $24,040.00 plus 28% of the amount over 123,700
$188,450 $336,550 $42,170.00 plus 33% of the amount over 188,450
$336,550 no limit $91,043.00 plus 35% of the amount over 336,550

Schedule Y-2 Married Filing Separately

If taxable income is over– But not over– The tax is:
$0 $7,550 10% of the amount over $0
$7,550 $30,650 $755.00 plus 15% of the amount over 7,550
$30,650 $61,850 $4,220.00 plus 25% of the amount over 30,650
$61,850 $94,225 $12,020.00 plus 28% of the amount over 61,850
$94,225 $168,275 $21,085.00 plus 33% of the amount over 94,225
$168,275 no limit $45,521.50 plus 35% of the amount over 168,275

Schedule Z Head of Household

If taxable income is over– But not over– The tax is:
$0 $10,750 10% of the amount over $0
$10,750 $41,050 $1,075.00 plus 15% of the amount over 10,750
$41,050 $106,000 $5,620.00 plus 25% of the amount over 41,050
$106,000 $171,650 $21,857.50 plus 28% of the amount over 106,000
$171,650 $336,550 $40,239.50 plus 33% of the amount over 171,650
$336,550 no limit $94,656.50 plus 35% of the amount over 336,550
 

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