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2018 Federal Income Tax Brackets and New Rates

The new tax rules retain seven federal income tax brackets, but rates and thresholds have changed.
July 27, 2018
Income Taxes, Taxes
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In 2018, there are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The bracket depends on taxable income and filing status.

Our table shows the tax brackets and federal income tax rates that apply to the 2018 tax year and relate to the tax return you’ll file in 2019.

2018 Federal Income Tax Brackets

Single filers
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $500,000$45,689.50 plus 35% of the amount over $200,000
37%$500,001 or more$150,689.50 plus 37% of the amount over $500,000
Married Filing Jointly / Qualifying Widow(er)
Tax rateTaxable income bracketTax owed
10%$0 to $19,05010% of taxable income
12%$19,051 to $77,400$1,905 plus 12% of the amount over $19,050
22%$77,401 to $165,000$8,907 plus 22% of the amount over $77,400
24%$165,001 to $315,000$28,179 plus 24% of the amount over $165,000
32%$315,001 to $400,000$64,179 plus 32% of the amount over $315,000
35%$400,001 to $600,000$91,379 plus 35% of the amount over $400,000
37%$600,001 or more$161,379 plus 37% of the amount over $600,000
Married Filing Separately
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,809.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $300,000$45,689.50 plus 35% of the amount over $200,000
37%$300,001 or more$80,689.50 plus 37% of the amount over $300,000
Head of Household
Tax rateTaxable income bracketTax owed
10%$0 to $13,60010% of taxable income
12%$13,601 to $51,800$1,360 plus 12% of the amount over $13,600
22%$51,801 to $82,500$5,944 plus 22% of the amount over $51,800
24%$82,501 to $157,500$12,698 plus 24% of the amount over $82,500
32%$157,501 to $200,000$30,698 plus 32% of the amount over $157,500
35%$200,001 to $500,000$44,298 plus 35% of the amount over $200,000
37%$500,001 or more$149,298 plus 37% of the amount over $500,000

Looking for more on the 2018 tax changes? Dig in with our full breakdown of the new tax law.

2018 Federal Income Tax Brackets

Single filers
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $500,000$45,689.50 plus 35% of the amount over $200,000
37%$500,001 or more$150,689.50 plus 37% of the amount over $500,000
Married Filing Jointly / Qualifying Widow(er)
Tax rateTaxable income bracketTax owed
10%$0 to $19,05010% of taxable income
12%$19,051 to $77,400$1,905 plus 12% of the amount over $19,050
22%$77,401 to $165,000$8,907 plus 22% of the amount over $77,400
24%$165,001 to $315,000$28,179 plus 24% of the amount over $165,000
32%$315,001 to $400,000$64,179 plus 32% of the amount over $315,000
35%$400,001 to $600,000$91,379 plus 35% of the amount over $400,000
37%$600,001 or more$161,379 plus 37% of the amount over $600,000
Married Filing Separately
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,809.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $300,000$45,689.50 plus 35% of the amount over $200,000
37%$300,001 or more$80,689.50 plus 37% of the amount over $300,000
Head of Household
Tax rateTaxable income bracketTax owed
10%$0 to $13,60010% of taxable income
12%$13,601 to $51,800$1,360 plus 12% of the amount over $13,600
22%$51,801 to $82,500$5,944 plus 22% of the amount over $51,800
24%$82,501 to $157,500$12,698 plus 24% of the amount over $82,500
32%$157,501 to $200,000$30,698 plus 32% of the amount over $157,500
35%$200,001 to $500,000$44,298 plus 35% of the amount over $200,000
37%$500,001 or more$149,298 plus 37% of the amount over $500,000

Looking for more on the 2018 tax changes? Dig in with our full breakdown of the new tax law.

2018 Federal Income Tax Brackets

Expand the filing status that applies to you.
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $500,000$45,689.50 plus 35% of the amount over $200,000
37%$500,001 or more$150,689.50 plus 37% of the amount over $500,000
Tax rateTaxable income bracketTax owed
10%$0 to $19,05010% of taxable income
12%$19,051 to $77,400$1,905 plus 12% of the amount over $19,050
22%$77,401 to $165,000$8,907 plus 22% of the amount over $77,400
24%$165,001 to $315,000$28,179 plus 24% of the amount over $165,000
32%$315,001 to $400,000$64,179 plus 32% of the amount over $315,000
35%$400,001 to $600,000$91,379 plus 35% of the amount over $400,000
37%$600,001 or more$161,379 plus 37% of the amount over $600,000
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 plus 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 plus 22% of the amount over $38,700
24%$82,501 to $157,500$14,809.50 plus 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 plus 32% of the amount over $157,500
35%$200,001 to $300,000$45,689.50 plus 35% of the amount over $200,000
37%$300,001 or more$80,689.50 plus 37% of the amount over $300,000
Tax rateTaxable income bracketTax owed
10%$0 to $13,60010% of taxable income
12%$13,601 to $51,800$1,360 plus 12% of the amount over $13,600
22%$51,801 to $82,500$5,944 plus 22% of the amount over $51,800
24%$82,501 to $157,500$12,698 plus 24% of the amount over $82,500
32%$157,501 to $200,000$30,698 plus 32% of the amount over $157,500
35%$200,001 to $500,000$44,298 plus 35% of the amount over $200,000
37%$500,001 or more$149,298 plus 37% of the amount over $500,000

Looking for more on the 2018 tax changes? Dig in with our full breakdown of the new tax law.

 

How tax brackets work

The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates.

  • Being “in” a tax bracket doesn’t mean you pay that federal income tax rate on everything you make. The progressive tax system means that people with higher taxable incomes are subject to higher tax federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
  • The government decides how much tax you owe by dividing your taxable income into chunks — also known as tax brackets — and each chunk gets taxed at the corresponding rate. The beauty of this is that no matter which bracket you’re in, you won’t pay that rate on your entire income.
  • Example #1: Let’s say you’re a single filer with $32,000 in taxable income. That puts you in the 12% tax bracket in 2018. But do you pay 12% on all $32,000? No. Actually, you pay only 10% on the first $9,525; you pay 12% on the rest. (Look at the tax brackets above to see the breakout.)
2018 tax brackets Example 1_Desktop 
2018 tax brackets Example 1_Mobile 
  • Example #2: If you had $50,000 of taxable income, you’d pay 10% on that first $9,525 and 12% on the chunk of income between $9,526 and $38,700. And then you’d pay 22% on the rest, because some of your $50,000 of taxable income falls into the 22% tax bracket. The total bill would be about $6,900 — about 14% of your taxable income, even though you’re in the 22% bracket.
2018 tax brackets Example 2_Desktop 
Example 2_Mobile_Updated 

How to get into a lower tax bracket and pay a lower federal income tax rate

Two common ways of reducing your tax bill are credits and deductions.

      • Tax credits directly reduce the amount of tax you owe; they don’t affect what bracket you’re in.
      • Tax deductions, on the other hand, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. So if you fall into the 22% tax bracket, a $1,000 deduction saves you $220.

In other words: Maximize your tax deductions — they can reduce your taxable income and could kick you to a lower bracket.

Being ‘in’ a tax bracket doesn’t mean you pay that rate on everything you make.

Next steps

If you’re ready to file, we can help you choose tax software and find the fastest way to get your refund.

In the longer term, taking steps to reduce your taxable income can go hand in hand with saving for retirement and estate planning to leave more for your heirs.