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Comparison of 2018 New Tax Brackets Vs 2017 Old Tax Brackets

Comparison of old and new tax
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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+

 

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.

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