The Tax Cuts and Jobs Act (TCJA) generally reduces individual
tax rates for 2018 through 2025. It maintains seven individual income tax
brackets but reduces the rates for all brackets except 10% and 35%, which
remain the same.
It also makes some adjustments to the income ranges each bracket
covers. For example, the 2017 top rate of 39.6% kicks in at $418,401 of taxable
income for single filers and $470,701 for joint filers, but the reduced 2018
top rate of 37% takes effect at $500,001 and $600,001, respectively.
Below is a look at the 2018 brackets under the TCJA. Keep in
mind that the elimination of the personal exemption, changes to the standard
and many itemized deductions, and other changes under the new law could affect
the amount of your income that’s subject to tax. Contact us for help assessing
what your tax rate likely will be for 2018.
Single individuals
|
Taxable income
|
Tax
|
|
Not over $9,525
|
10% of the taxable
income
|
|
Over $9,525 but not
over $38,700
|
$952.50 plus 12% of
the excess over $9,525
|
|
Over $38,700 but not
over $82,500
|
$4,453.50 plus 22%
of the excess over $38,700
|
|
Over $82,500 but not
over $157,500
|
$14,089.50 plus 24%
of the excess over $82,500
|
|
Over $157,500 but
not over $200,000
|
$32,089.50 plus 32%
of the excess over $157,500
|
|
Over $200,000 but
not over $500,000
|
$45,689.50 plus 35%
of the excess over $200,000
|
|
Over $500,000
|
$150,689.50 plus 37%
of the excess over $500,000
|
Heads of households
|
Taxable income
|
Tax
|
|
Not over $13,600
|
10% of the taxable
income
|
|
Over $13,600 but not
over $51,800
|
$1,360 plus 12% of
the excess over $13,600
|
|
Over $51,800 but not
over $82,500
|
$5,944 plus 22% of
the excess over $51,800
|
|
Over $82,500 but not
over $157,500
|
$12,698 plus 24% of
the excess over $82,500
|
|
Over $157,500 but
not over $200,000
|
$30,698 plus 32% of
the excess over $157,500
|
|
Over $200,000 but
not over $500,000
|
$44,298 plus 35% of
the excess over $200,000
|
|
Over $500,000
|
$149,298 plus 37% of
the excess over $500,000
|
Married individuals filing joint returns and
surviving spouses
|
Taxable income
|
Tax
|
|
Not over $19,050
|
10% of the taxable
income
|
|
Over $19,050 but not
over $77,400
|
$1,905 plus 12% of
the excess over $19,050
|
|
Over $77,400 but not
over $165,000
|
$8,907 plus 22% of
the excess over $77,400
|
|
Over $165,000 but
not over $315,000
|
$28,179 plus 24% of
the excess over $165,000
|
|
Over $315,000 but
not over $400,000
|
$64,179 plus 32% of
the excess over $315,000
|
|
Over $400,000 but
not over $600,000
|
$91,379 plus 35% of
the excess over $400,000
|
|
Over $600,000
|
$161,379 plus 37% of
the excess over $600,000
|
Married individuals filing separate returns
|
Taxable income
|
Tax
|
|
Not over $9,525
|
10% of the taxable
income
|
|
Over $9,525 but not
over $38,700
|
$952.50 plus 12% of
the excess over $9,525
|
|
Over $38,700 but not
over $82,500
|
$4,453.50 plus 22%
of the excess over $38,700
|
|
Over $82,500 but not
over $157,500
|
$14,089.50 plus 24%
of the excess over $82,500
|
|
Over $157,500 but
not over $200,000
|
$32,089.50 plus 32%
of the excess over $157,500
|
|
Over $200,000 but
not over $300,000
|
$45,689.50 plus 35%
of the excess over $200,000
|
|
Over $300,000
|
$80,689.50 plus 37%
of the excess over $300,000
|
© 2018
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