What Do the New 2018 Tax Rates Look Like?
What do the new 2018 tax rates and 2018 tax brackets look like?
***We will update this page soon with requirements for this year. If you need it updated right away, feel free to drop us a note!
President Trump originally proposed a new tax plan that would only have 3 tax brackets: 10%, 25% and 35%. However, the tax plan that Congress ultimately passed kept 7 tax brackets.
The old tax brackets were 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
The new 2018 tax brackets are 10%, 12%, 22%, 24%, 32%, 35% and 37%.
To stay updated on personal finance topics – including what happens to the tax brackets in future years:
Updated 2018 Tax Tables and 2018 Tax Rates
The 2018 income tax brackets will use the new 10%, 12%, 22%, 24%, 32%, 35% and 37% tax brackets this year.
Each year, without any action from Congress, the federal income tax brackets adjust based on inflation.
Here are the new 2018 tax brackets. They are the tax brackets for your income earned in 2018 (which will be filed on your 2018 tax return due on the tax deadline in 2019).
These tax brackets are NOT the tax rates you will use to file your tax return in 2018. For the tax brackets you will use to file your tax return in 2018, please see the 2017 tax brackets further down the page.
2018 Tax Rates & Tax Brackets (Taxes Due April 2019)
Here are the new updated federal 2018 tax tables and 2018 tax brackets. The final tax brackets were released by the IRS earlier this year:
|Tax Rate||Single||Married Filing Joint||Married Filing Separate||Head of Household|
|10%||Up to $9,525||Up to $19,050||Up to $9,525||Up to $13,600|
|12%||$9,526 – $38,700||$19,051 – $77,400||$9,526 – $38,700||$13,601 – $51,800|
|22%||$38,701 – $82,500||$77,401 – $165,000||$38,701 – $82,500||$51,801 – $82,500|
|24%||$82,501 – $157,500||$165,001 – $315,000||$82,501 – $157,500||$82,501 – $157,500|
|32%||$157,501 – $200,000||$315,001 – $400,000||$157,501 – $200,000||$157,501 – $200,000|
|35%||$200,001 – $500,000||$400,001- $600,000||$200,001 – $300,000||$200,001 – $500,000|
|37%||Over $500,000||Over $600,000||Over $300,00||Over $500,000|
The 2018 federal tax tables are based on your filing status and number of dependents for the 2018 calendar year.
New 2018 Tax Plan
We will cover more on the new tax plan soon, however, some things you need to be aware of include the doubling of the standard deduction and child tax credits and the elimination of personal exemptions.
In addition, the Health Insurance Premium Tax Credit and Tax Penalty for No Health Insurance from this year will continue to apply to your taxes based on your Modified Adjusted Gross Income in 2018.
2018 Tax Rates vs 2017 Tax Rates
Want to compare the 2018 tax brackets to the 2017 tax brackets to see the changes?
Here are the 2017 tax rates for comparison. The 2017 tax rates are the tax brackets that you will use to file your 2017 tax return due in 2018.
2017 Tax Rates & Tax Brackets (Taxes Due April 2018)
Here are the federal 2017 tax tables and final 2017 tax brackets from the IRS:
|Tax Rate||Single||Married Filing Joint||Married Filing Separate||Head of Household|
|10%||Up to $9,325||Up to $18,650||Up to $9,325||Up to $13,350|
|15%||$9,326 – $37,950||$18,651 – $75,900||$9,326 – $37,950||$13,351 – $50,800|
|25%||$37,951 – $91,900||$75,901 – $153,100||$37,951 – $76,550||$50,801 – $131,200|
|28%||$91,901 – $191,650||$153,101 – $233,350||$76,551 – $116,675||$131,201 – $212,500|
|33%||$191,651 – $416,700||$233,351 – $416,700||$116,676 – $208,350||$212,501 – $416,700|
|35%||$416,701 – $418,400||$416,701- $470,700||$208,351 – $235,350||$416,701 – $444,550|
|39.6%||Over $418,400||Over $470,700||Over $235,350||Over $444,550|
More on Tax Brackets
The tax bracket you fall in is a marginal tax rate and it doesn’t apply to all of your income. For more information, see How Do Tax Brackets Work?
In addition to the tax brackets and federal tax tables above, you may owe tax under the alternative minimum tax. You can review the AMT exemption to see if it will apply to you.
We will update the Tax Calculator soon to help you with your tax planning.
File Your Taxes Online
File your federal and state taxes online with TurboTax.
Are these tax brackets for Fed and State???
@ Sandy: Federal only. State tax brackets vary by state.
So I guess I should save more $ to cover the state as well, huh??
Have a question for ya. I am a single and on W2. My deduction is 2 on W4. But I always owe money to Fed and the state. It bothers h*** out of me b/ a lot of people get a refund but i don’t. I thought standard # of deduction for a single is 2!!! I know I can always contribute more $ or lower the # of deductions, but if i am following everything what I supposed to but still owe money to uncle Sam worries me…. Is it normal????
As a single person, the only deduction you can claim is yourself (1). If you claim 2, the amount of money held from your paycheck is less than what you owe, resulting in your payment to the government come tax time. If you want to break even, claim 1 exemption on your W4. If you want a refund, claim 0 exemptions.
Nate that is incorrect. Please check you facts before posting this like this. Sandy, you need to buy a tax book and start reading. Go to the IRS website, they have a calculator that you can use to figure this out.
Nate is telling the truth. If you follow the worksheet like they ask you to you will end up paying money to the government. Two exemptions is like saying that you have two mouths to feed yourself and one other person. Filing one exemption means that you will have one mouth to feed (yourself). Filing zero means that you are asking that your employer take out more than the designated amount to make sure that you do not owe taxes. You are not always guaranteed a refund but most of the time you will not owe.
Bryan (not Brian) is correct. If you follow the worksheet, you’re allowed to claim one for yourself, and claim one if you only work one job. That allows Sandy to claim two. Assuming she’s not working a second job, she should be allowed to claim 2.
I also claim two, and I’m single and have one job. I owed $7 to the feds and got $52 back from state (VA). Whatever, I’m fine with that.
You can cliam head of house Hold and one dependent and that will defintily help your claim or you can claim single and your one or two dependent’s and get back a nice return. But make sure that when you claim it is by goverment regulation’s and rules. Don’t try to claim your friends children you will get pentalie’s.
Think of the number of exemptions you claim as your pre-claiming deductions on your return. However this only takes into account the average for your tax bracket and if you are only claiming the standard deduction and not itemizing, don’t have a mortgage or student loans you might have less than the average number of deductions.
I am not an accountant but I would only claim 1 on your W4. Never compare what someone else gets as a refund. People who frequently get a high refund may also be claiming deductions they are not entitled to (or are exaggerating) and put themselves at risk if they are audited. Sounds to me like you need some more deductions or a better accountant.
Ronnie, you seem to be talking out of both sides of your mouth. One is right and the other is wrong. Both ccan’t be right.
I work for a national tax company. Each of these people are both right and wrong to some extent. Not knowing more details about your income and tax filings, I would suggest claiming 1. We don’t know if your income fluctuates or is sometimes too small to even have a federal deduction taken from your checks. Too many variables to know the big picture.
These old tax system is better that the new one. People earning roughly 38-150 thousand will get a tax cut. The people below 40 with a family will still get their taxes cuts from the children and people who make over 150 thousand would see an increase in taxes. How this is calculated if you make 70 thousand or less on the old system you pay 15%. On the table you have you start paying 25% at 34 thousand which makes your actual tax rate higher than 15 percent once you reach 38400 per year. Not to mention the tax cut on capital gains and dividends which only affected the rich. Let the old system come back.
Capital gains and dividends taxes affect everyone who has any money invested in anything, be it stocks, metals, even a house. The government uses a shell game to make everyone think, “it’s the other guy.” They are bleeding us dry.
So basically you object to this because most people will see a (slight) cut in taxes, while those making more than $150K will see a (slight) increase? I think those making over $150K can deal with it, quite frankly. And if they don’t like these rates, why don’t we bring back Reagan-era marginal tax rates (around 50% for top earners)? Someone has to pay for those bailouts.
The problem is it would take Kennedy era tax rates,remember that was close to a 90% top tax rate, to actually make a dent in the debt.
Nate & Btian are incorrect. Bryan is correct. I work for the IRS – currently on your W4 if you are single and have only 1 job, you are entitled to claim 2 exemption. On your tax return you only claim yourself but that does not mean you will necessarily owe. You may be entitled to even claim more if you itemize! Currently the tax rates are lower and even at a $50K salary level claiming 2 on the W-4 (all year) can still give you a small refund or make you break even! Again, use the withholding calculator on http://www.irs.gov
to ascertain the correct amount of exemptions to claim.
I claimed 2 last year and still got a very small refund. Depends on what bracket you are in.
Hi this is going to be our first year filing but I have a few questions. 1) I am 21 and my boyfriend is 23 and we had a baby this year and he is claiming her, but we are living at my parents house, will this have an effect on our return and would he file as head of household or not? I am just really confused when it comes to taxes and I want to be able to get as much back as possible
Where would I find info on earned income credit?
Here is more information on the Earned Income Tax Credit (EITC).
I have the following income:
1. Social Security
If these come to over $34,501 do I pay 25% tax on all these?
Firstly you must determine if your social security income is taxable and to what extent. If you are single and your total income (incl SS) is between $31,948 and $40,948 – then 50% of your SS is taxable. Add that 50% to your pension & unemployment income and any other income i.e. interest and that is your total gross income. Then you get to deduct your exemptions, etc. The bottom figure will be what determines your tax bracket. Offhand I would think you would be in the 15% bracket max.
Donna Holloway. If you are getting a Pension and Social Security, why are you collectng unemployment? SHAME!
I have 2 questions. First, my employer recently began deducting an additional $100 from my bi-weekly paycheck for Federal Income taxes, and told me that this was because of the new tax deal that went into effect Jan 1. I have not had a status change or pay raise since last year (actually 3 years) and my W4 form remained the same this year (married but withholding at single higher rate and claiming “0” deductions). Everything that I’ve read indicates that tax rates should be the same this year as last (and I checked to make sure that I’m still in the same tax bracket), so why is my employer claiming that this $100 extra is being removed b/c of the new tax law? Also, as I’ve stated, I always claim “0” and single, so why do I repeatedly have to pay money out for my annual income tax return? Are either of these issues the result of something that my employer has done incorrectly?
Here’s a helpful graph that illustrates what happened in the 2011 Payroll Tax Cut: What Your Paycheck Will Look Like.
You’ll see in the second graph how paychecks changed based on your income.
If you owe money each year and want to have more money withheld, you can claim 0 and have extra money withheld. The reason you owe is probably not the result of something your employer is doing because all of the withholding that your employer is doing on your behalf will show up on your W2.
I hope that helps!
All of the comments and disagreement prove one thing. That our tax system is too complicated for even the officials and “so-called” long term “expert” employees of the IRS to know, at the tip of their fingers, what’s right and what’s not.
Such a over-complex system is tailor made to create the need for entire industries that cater to all this confusion and sense of fear.
If no taxpayer and no tax official is sure exactly what the law IS, it’s best to “have a friend” at the IRS, or GOP, or Democratic Party, or at an expensive tax attorney/CPA, who will run interference for you and whose names instill fear in IRS examiners. They are the “hired guns” of the business.
THAT is why everyone is PO’d at rich folks; for having expensive help that aids them in getting away with paying less than otherwise and thus making it imperative that less rich people pay more!
^ Couldnt agree more! Us regular folks have to spend weeks educating ourselves on tax and investing (which scares many from educating themselves financially in the first place), while those with the extra resources will have sound and good advice readily avaliable!
I’m a bit confused (bet you get a lot of that). I’m assuming these tax tables are for taxable income, right? Which means if I can earn $87,900 before crossing over into the 25% bracket. That would be $69,000 plus my standard deduction of $11,600 (Married filing joint) plus my 2 Exemptions ($7,300 last year) Is this correct? Or is there something I’m missing?
You are correct, the tax tables are for taxable income. In addition to adding on your standard deduction and your exemptions to come up with the maximum before crossing over into the next tax bracket, you can also add on other pretax items (like 401k contributions and health care premiums) and other deductions that appear on the front page of the 1040 (like IRA deductions, student loan interest, tuition and fees, etc.)
Also, don’t forget that only the amount that crosses over will be taxed at the higher tax rate, not your entire income.
Ok, forgive me for my ignorance on this one. My goal is to adjust my withholding in 2012 so that we don’t get a refund (but we don’t wanna owe either). We are not looking for extra pocket money, we are looking to offset the raise we are planning to contribute to our 401Ks. So according to the chart we fall in the 25% line. So at 90K we should be paying 22.5K in taxes by the end of the year? Is this right?
You will be paying much less than that because of deductions either standard or itemized depending on your situation. You only have to pay the tax bracket percent on the next incremental dollar earned above all of your deductions for the bracket you are in. For example, if you got a pay raise of $1000 dollars THEN you would probably owe an additional $250, but if you earned $100,000 total you would find that your TOTAL would most likely be more like $10-$15 thousand instead of $25,000.
I have a kid in another country, but not married to the mom. I send money every month to them for 9 years now, including private school tuition. I have an 80 year old mom living with me, I pay a lady $3200 a month to take care of her at home. IRS won’t let me deduct the cost to support my kid, won’t let me use my mom as a dependent (she gets $900 SS) and won’t let me claim head of household to get a measly $100 bucks back. This country is so messed up.
Child support is unfortunately not a deduction from what i have been told.
You could claim your mother if you support more then 50% of her care and she makes a very small amount. 900.00 is still quite a bit to the feds.
a family member filed me as a dependant on their income tax filing, how can i find out?
At least one positive from the 2012 tax brackets is that most of us will get a tax cut, thanks to the increase in tax bracket ranges. A little good in these tough financial times.
my wife and i live together for five years i got my greencard and i got a job but my wife made more money than me and i didnt know about taxes so she use a taxes id number with my name to file taxes in 2005 2006 and i didnt work that long to be oweing the irs money i only made eleven thousand dollars last year and they take taxes out i suppose to be getting a refund back if the irs dont take it this is very hard on a person you trying get your money and you didnt make any money at all and the irs is always taking your hard earn money people who rich who owe irs they dont take there money but poor people they take there little bit of money from them its very sad it makes you wonder why work
I start with an electronic copy of the prior year’s calculations using tax-preparation software. (You did keep one, didn’t you?) I then change input data as appropriate (e.g., income, deductible expenses) and incorporate any changes in tax law I know about (e.g., the elimination of a credit). Next, I add 10% to this estimate, to minimize the chances of any under-withholding. Finally, I use this amount for my W-4 by taking the maximum number of exemptions I can without exceeding my estimate and then specifying enough additional withholding to make up the difference. I do this again in summer and fall, and once more when I receive the new software for that tax year (usually in November). Each time I get a more accurate estimate of my tax liability. When I finally file my actual tax return, there are no surprises.
I am so confused…. when filing out federal and state forms for a new job I am so confused about what to claim. The way we figurd our federal would be 7 exemptions… I dont wanna owe at the end of the year . This crap is so confusing and they do it that way on purpose. Plain simple english would be nice!!
I thought that the 10% tax bracket would go to 15% in 2013. That is an increase of $875 for a couple making a taxable income of $17,500. That is a big increase for a small income.
We have too much taxes for both state and federal. We spend too much on military actions and their private contractors. If we downsized our global military actions we could afford to pay for healthcare and college through taxes, at a three tiered flat rate with no exemptions….10% for the first 50,000; 15% for 51,000-250,000; and 20% for the rest would cover our infrastructure, military, services, college, and healthcare, and the other services govnt provides.
Just don’t allow exemptions and make it automatic so almost nobody has to file…its already taxed every check…..simple and easy. Only business owners should submit paperwork. Beaurocracy is corruption.
My wife and I will end up spending 23,000 in taxes. We make crap. What the hell has the government done to warrant these charges besides invade countries against my wishes. Roads are crap, bridges are crumbling and people get to stay on unemployment for a lifetime. In my day you had 26 weeks total to get a job. If not you were ass out. I thought Clinton put an end to the welfare B.S. The only way to kill a sponge is to let it dry up. Take away the water. I hear too many people stating I am not working for less than $12.00 hr. Screw that. Make them work for their food stamps, heating assistance whatever we now give them. They can fix the roads. Build a high speed system at a huge discount if you consider paying them a small wage to go along with the free bees they all ready receive. Kids are going to college for stupid degrees. Stop those college courses and offer only the jobs we need to fill. High tech, chemistry, applied sciences etc. The artsy fartsy stuff can be filled by the aristocrats children who do not have to worry about money. We need safe natural gas technology, solar, wind battery technology which we funded then sold to russia. Look at ener1 for an example. Get off your asses America. Compete against Wal-Mart and others. Form REASONABLE unions. Not ones that demand overtime and other outrageous benefits that can drive a company broke. No company should have part-time employees if there are people willing to work full time. You stupid citizens will eventually all be cut to part time no benefits once Obama care is in full swing. Hell I would do it if I owned my own business. You think you are safe and call us radicals till the day it hits your household.
I take care my brother who is disable, is their help that I can get for takeing care of him?
You should read history. The income tax was declared unconstitutional in 1895 by the Supreme Court, as it should still be, under the Constitution. The federal government has a supervisory role, it was not envisioned to be the monstrosity it has become.
Why should we be slaves in support of our masters?
My husband and I always claimed married +5 so that we had less taken out of our paychecks even before we had our son. Our reasoning was that we would rather have that money to invest and earn interest rather than have the Govt. have it all year. But, one must be a disciplined saver to be sure to have funds to pay the IRS at the end of the year, if you don’t have enough deductions. It’s perfectly legal. Check with your tax advisor.
If you get a refund you are giving the government an interest free loan. If you underpay by a certain amount (a % of what you owe, probably) you pay a penalty. BUT..if you’re putting enough in thru the year through withholdings and/or estimated tax payments to meet that threshold, you’re better off keeping the money and paying a little with your return than letting the govt hold your money for a year then giving it back in a refund with no interest. Although a refund feels like a “gift”, think about what you’re really doing.
“what hurts… I make $175,000 ($35,000 from USMC retirement), and I’m paying the Government $38,000 this year. My loser brother-in-laws are barely making $25,000 a year and they’re getting over $4,000 in tax refunds. I owe another $1,400. Why did I work so hard through 20 years of Marine Corps service and sacrifice even more getting an MBA? Home Depot or Walmart looks like a better option for me. Is there such thing as downsizing employment?” Jennifer, you need to seriously find deductions to bring your bottom line down. Buy rental property, start an IRA and contribute the maximum amount allowed. Your brother in laws probably have children, mortgage interest, and tons of other deductions to offset their income. The current administration and others before, make being dependent on the government by using food stamps, welfare and not having to look for another job, attractive. Don’t fall into this pit that you can’t get out of! If your work has a 401k or similar investment program, invest the maximum amount allowed. Get with your investment adviser and ask for advice on how to reduce you tax liability. These tips will allow you to keep more of your money so you can reinvest and grow you money.