While these changes will lower rates at many income levels, determining the overall impact on any particular individual or family will depend on a variety of other changes made by the Tax Cuts and Jobs Act, including increases in the standard deduction, loss of personal and dependency exemptions, a dollar limit on itemized deductions for state and local taxes and changes to the child tax credit and the taxation of a child's unearned income, known as the Kiddie Tax. Head of Household 2018 Income Tax Rates If taxable income is: Married Filing Separate 2018 Income Tax Rates If taxable income is: Married Filing Jointly and Surviving Spouse 2018 Income Tax Rates If taxable income is: Single Individuals' 2018 Income Tax Rates If taxable income is: The following tables show the dollar ranges of these new brackets. Currently those rates are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.īeginning with the 2018 tax year and continuing through 2025, there will still be seven tax brackets for individuals, but their percentage rates will change to: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Individuals are subject to income tax on “ordinary income,” such as compensation and most retirement and interest income, at increasing rates that apply to different ranges of income depending on their filing status (single married filing jointly, including surviving spouse married filing separately and head of household). Changes to the individual and corporate income tax rates will take effect beginning in 2018 under the major piece of tax legislation called the Tax Cuts and Jobs Act (TCJA).
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