The Tax Cuts and Jobs Act (TCJA) passed by Congress in late 2017 cuts tax rates, ditches deductions and ultimately opens up a world of new tax savings opportunities for individuals. Here’s what you need to know on the individual tax rate changes.
Individual tax rate brackets
Seven brackets still remain, but at reduced rates. The marriage penalty is eliminated except those in the top two brackets. This means that the income tax thresholds for married couples are now exactly double the thresholds for singles.
Planning tip: You may need to adjust your federal tax withholding with your employer to keep more of your money throughout the year.
Single taxpayer
| Taxable income over $0 $9,525 $38,700 $82,500 $157,500 $200,000 $500,000 |
But not over $9,525 $38,700 $82,500 $157,500 $200,000 $500,000 |
Is taxed 10% 12% 22% 24% 32% 35% 37% |
Head of household
| Taxable income over $0 $13,600 $51,800 $82,500 $157,500 $200,000 $500,000 |
But not over $13,600 $51,800 $82,500 $157,500 $200,000 $500,000 |
Is taxed 10% 12% 22% 24% 32% 35% 37% |
Married filing jointly
| Taxable income over $0 $19,050 $77,400 $165,000 $315,000 $400,000 $600,000 |
But not over $19,050 $77,400 $165,000 $315,000 $400,000 $600,000 |
Is taxed 10% 12% 22% 24% 32% 35% 37% |
Married filing separately
| Taxable income over $0 $9,525 $38,700 $82,500 $157,500 $200,000 $300,000 |
But not over $9,525 $38,700 $82,500 $157,500 $200,000 $300,000 |
Is taxed 10% 12% 22% 24% 32% 35% 37% |
If you have any questions, visit with one of our Tax experts.
Published: 9-13-18
