One of the most important aspects of the Tax reform passed by the United States Senate is the change in tax brackets among others for single or joint individual tax filers. The reform maintains the 10% tax rate base line for earners in the lower spectrum but slashes the high-income tax rates from 39.6% to 37%. While it seems from the new brackets that a majority of Americans may get a tax cut, for us to get a complete understanding we need to calculate and compare our taxes from the prior and current policy. Learn more about 2018 tax brackets vs 2019 tax brackets.
Single Tax Payers
| 2018 New Rate | 2018 New Income Bracket | | | 2017 Old Rate | 2017 Old Income Bracket |
| 10% | Up to $9,525 | | | 10% | Up to $9,525 |
| 12% | $9,525-$38,700 | | | 15% | $9,525-$38,700 |
| 22% | $38,700-$82,500 | | | 25% | $38,700-$93,700 |
| 24% | $82,500 – $157,500 | | | 28% | $93,700-$195,450 |
| 32% | $157,500-$200,000 | | | 33% | $195,450-$424,950 |
| 35% | $200,000-$500,000 | | | 35% | $424,950-$426,700 |
| 37% | $500,000+ | | | 39.6% | $426,700+ |
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Married Couples Filing Jointly
| 2018 New Rate | 2018 New Income Bracket | | | 2017 Old Rate | 2017 Old Income Bracket |
| 10% | Up to $19,050 | | | 10% | Up to $19,050 |
| 12% | $19,050-$77,400 | | | 15% | $19,050-$77,400 |
| 22% | $77,400-$165,000 | | | 25% | $77,400-$156,150 |
| 24% | $165,000-$315,000 | | | 28% | $156,150-$237,950 |
| 32% | $315,000-$400,000 | | | 33% | $237,950-$424,950 |
| 35% | $400,000-$600,000 | | | 35% | $424,950-$480,050 |
| 37% | $600,000+ | | | 39.6% | $480,050+ |
Married Couple Filing Separately
| 2018 New Rate | 2018 New Income Bracket | | | 2017 Old Rate | 2017 Old Income Bracket |
| 10% | Up to $9,525 | | | 10% | Up to $9,525 |
| 12% | $9,525-$38,700 | | | 15% | $9,525-$38,700 |
| 22% | $38,700-$38,700 | | | 25% | $38,700-$78,075 |
| 24% | $38,700-$157,500 | | | 28% | $78,075-$118,975 |
| 32% | $157,500-$200,000 | | | 33% | $118,975-$212,475 |
| 35% | $200,000-$300,000 | | | 35% | $212,475-$212,475 |
| 37% | $300,000+ | | | 39.6% | $212,475+ |
Heads of the Household
| 2018 New Rate | 2018 New Income Bracket | | | 2017 Old Rate | 2017 Old Income Bracket |
| 10% | Up to $13,600 | | | 10% | Up to $13,600 |
| 12% | $13,600-$51,800 | | | 15% | $13,600-$51,800 |
| 22% | $51,800-$82,500 | | | 25% | $51,800-$133,850 |
| 24% | $82,500-$157,500 | | | 28% | $133,850-$216,700 |
| 32% | $157,500-$200,000 | | | 33% | $216,700-$424,950 |
| 35% | $200,000-$500,000 | | | 35% | $424,950-$453,350 |
| 37% | $500,000+ | | | 39.6% | $453,350+ |
You can also read about 2018 Tax Reform – Business Interest Deduction, Section 199A – Impact on Small and Pass-through business or 2018 Tax law update for Individuals. Contact us to learn more about our services.
