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2018 Federal Tax Rates, Personal Exemptions, & Standard Deductions

IRS Tax Brackets & Deduction Amounts for Tax Year 2018

This article gives you the tax rates and related numbers that you will need to prepare your 2018 income tax return. In general, 2018 personal income tax returns are due by Monday, April 15, 2019.

If you are looking for 2017 tax rates, you can find them HERE.

2018 Individual Income Tax Brackets

The Federal income tax has 7 rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The amount of tax you owe depends on your income level and filing status.

These tax rates are new and come from the Tax Jobs and Cuts Act of 2017, which was signed into law by President Trump on December 22, 2017. These tax changes are effective as of January 1, 2018.

While there are still 7 tax brackets, the rates have decreased overall. (These lower tax rates will expire in 2025, unless Congress votes to extend them.) The top rate is reduced from 39.6% to 37%. The bottom rate is still 10%, but it now covers more income.

Remember that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.

Here are the 2018 tax rates and brackets organized by filing status:

Single

Taxable Income Tax Rate
$0 – $9,525 10% of taxable income
$9,526 – $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 – $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 – $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 – $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 – $500,000 $45,689.50 plus 35% of the amount over $200,000
$500,001 or more $150,689.50 plus 37% of the amount over $500,000

 

Married Filing Jointly or Qualifying Widow(er)

Taxable Income Tax Rate
$0 – $19,050 10% of taxable income
$19,051 – $77,400 $1,905 plus 12% of the amount over $19,050
$77,401 – $165,000 $8,907 plus 22% of the amount over $77,400
$165,001 – $315,000 $28,179 plus 24% of the amount over $165,000
$315,001 – $400,000 $64,179 plus 32% of the amount over $315,000
$400,001 – $600,000 $91,379 plus 35% of the amount over $400,000
$600,001 or more $161,379 plus 37% of the amount over $600,000

 

Married Filing Separately

Taxable Income Tax Rate
$0 – $9,525 10% of taxable income
$9,526 – $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 – $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 – $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 – $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 – $300,000 $45,689.50 plus 35% of the amount over $200,000
$300,001 or more $80,689.50 plus 37% of the amount over $300,000

 

Head of Household

Taxable Income Tax Rate
$0 – $13,600 10% of taxable income
$13,601 – $51,800 $1,360 plus 12% of the amount over $13,600
$51,801 – $82,500 $5,944 plus 22% of the amount over $51,800
$82,501 – $157,500 $12,698 plus 24% of the amount over $82,500
$157,501 – $200,000 $30,698 plus 32% of the amount over $157,500
$200,001 – $500,000 $44,298 plus 35% of the amount over $200,000
$500,001 or more $149,298 plus 37% of the amount over $500,000

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NOTE: There are no personal exemption amounts for 2018.

2018 Standard Deduction Amounts

There are 2 main types of tax deductions: the standard deduction and itemized deductions. You are allowed to claim one type of deduction on your tax return, but not both.

For instance, if you claim the standard deduction, you cannot itemized deductions – and vice versa (if you itemized deductions, you cannot claim the standard deduction). Your can use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), which means it reduces your taxable income.

For tax year 2018, the standard deduction amounts are as follows:

Filing Status Standard Deduction
Single $12,000
Married Filing Jointly or Qualifying Widow(er) $24,000
Married Filing Separately $12,000
Head of Household $18,000

 

Note that there is an additional standard deduction for elderly and blind taxpayers, which is $1,300 for tax year 2018. This amount increases to $1,600 if the taxpayer is also unmarried.

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