What Is Your Tax Bracket and Rate for 2018?

The new tax law that went into effect on January 1st of this year comes with a new set of tax brackets and tax rates. Do you know which bracket you fall in, and what your new tax rate will be? This blog provides a quick outline of all the new brackets and rates for individual and joint filers, and compares it to the brackets and rates from 2017.

Please be aware that the new tax brackets will only apply to your future tax returns, not the one that you are currently filing for 2017. If you have any questions regarding your current tax filing or new tax bracket, please speak to a CPA at our Provo tax firm.

Tax Brackets and Rates for Single Filers

The new tax brackets and rates for individual filers are outlined in the table below. These brackets and rates apply to both single individuals and married individuals filing separately, but excludes heads of households and surviving spouses. These numbers will apply to your future tax returns.

Taxable Income Tax Rate
Less than $9,525 10% of taxable income
$9,526 – $38,700 $952.50 plus 12% of earnings over $9,525
$38,701 – $82,500 $4,453.50 plus 22% of earnings over $38,700
$82,501 – $157,500 $14,089.50 plus 24% of earnings over $82,500
$157,501 – $200,000 $32,089.50 plus 32% of earnings over $157,500
$200,001 – $500,000 $45,689.50 plus 35% of earnings over $200,000
$500,001+ $149,298 plus 37% of earnings over $500,000

 

If you would like to know the brackets and rates for individual filers under the old tax law, these are outlined in the table below. These are the numbers applied to your current tax return.

Taxable Income Tax Rate
Less than $9,325 10% of taxable income
$9,326 – $37,950 $932.50 plus 15% of earnings over $9,325
$37,951 – $91,900 $5,226.25 plus 25% of earnings over $37,950
$91,901 – $191,650 $18,713.75 plus 28% of earnings over $91,900
$191,651 – $416,700 $46,643.75 plus 33% of earnings over $191,650
$416,700 – $418,400 $120,910.25 plus 35% of earnings over $416,700
$418,401+ $121,505.25 plus 39.6% of earnings over $418,400

 

Tax Brackets and Rates for Joint Filers

For married individuals filing jointly, as well as for surviving spouses, the following tax brackets and rates will be applied to your future tax returns.

Taxable Income Tax Rate
Less than $19,050 10% of taxable income
$19,051 – $77,400 $1,905 plus 12% of earnings over $19,050
$77,401 – $165,000 $8,907 plus 22% of earnings over $77,400
$165,001 – $315,000 $28,179 plus 24% of earnings over $165,000
$315,001 – $400,000 $64,179 plus 32% of earnings over $315,000
$400,001 – $600,000 $91,379 plus 35% of earnings over $400,000
$600,001+ $161,379 plus 37% of earnings over $600,000

 

For your current tax return and any tax returns filed for previous years, the following tax brackets and rates will apply for all joint filers.

Taxable Income Tax Rate
Less than $18,650 10% of taxable income
$18,651 – $75,900 $1,865 plus 15% of earnings over $18,650
$75,901 – $153,100 $10,452.50 plus 25% of earnings over $75,900
$153,001 – $233,350 $29,752.50 plus 28% of earnings over $153,100
$233,351 – $416,700 $52,222.50 plus 33% of earnings over $233,350
$416,701 – $470,700 $112,728 plus 35% of earnings over $416,700
$470,701+ $131,628 plus 39.6% of earnings over $470,700

 

If you have questions regarding your new tax bracket, current tax filing, or any other issues regarding your tax return, please contact us at our Provo tax firm. We’ll put you in touch with an experienced tax expert who can answer your questions.