Here's how your tax bracket will change in 2018
Jonathan Ernst/Reuters
- President Donald Trump signed the Republican tax bill into law at the end of December.
- Income tax brackets have been changed under the new law.
- There are still seven tax brackets, but the income ranges have been changed.
- The personal exemption has been eliminated, and the standard deduction has been increased.
President Donald Trump signed the Republican tax bill into law at the end of December.
The new legislation makes sweeping changes to the tax code for businesses and, on average, American taxpayers.
Here's how this new tax plan will change federal income tax brackets in 2018 compared with those in 2017.
First, for single filers:
Elena Holodny/Business Insider
- 10%: $0 to $9,525 of taxable income for an individual
- 12%: $9,526 to $38,700
- 22%: $38,701 to $82,500
- 24%: $82,501 to $157,500
- 32%: $157,501 to $200,000
- 35%: $200,001 to $500,000
- 37%: over $500,001
And second, for joint filers:
Elena Holodny/Business Insider
- 10%: $0 to $19,050 for married joint filers
- 12%: $19,051 to $77,400
- 22%: $77,401 to $165,000
- 24%: $165,001 to $315,000
- 32%: $315,001 to $400,000
- 35%: $400,001 to $600,000
- 37%: Over $600,000
There are still seven federal income tax brackets — but at slightly lower rates and adjusted income ranges.
About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly.
In 2017, the standard deduction for a single taxpayer is $6,350, plus one personal exemption of $4,050.
The new law combines those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers.
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