Most individual tax rates go down under the TCJA

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

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