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What Do the New 2018 Tax Rates Look Like?

What do the new 2018 tax rates and 2018 tax brackets look like?

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%.

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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 [1].

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 [2] 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 [3] 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 [4] and number of dependents [5] 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 [6] and child tax credits [7] and the elimination of personal exemptions [8].

In addition, the Health Insurance Premium Tax Credit [9] and Tax Penalty for No Health Insurance [10] from this year will continue to apply to your taxes based on your Modified Adjusted Gross Income [11] 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 [12] 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? [13]

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 [14] to see if it will apply to you.

Tax Calculator

We will update the Tax Calculator [15] soon to help you with your tax planning.

File Your Taxes Online

File your federal and state taxes online with TurboTax [16].

More Tax Topics