06 Feb Tax Brackets Have Changed—Do You Know Your New Tax Rate?
With the recent Republican tax act being signed into law, there will be some dramatic changes to tax laws and tax brackets going into effect this year. Do you know what bracket you will fall in, and what your new tax rate will be? This blog will outline all of the new 2018 tax brackets for joint and single filers as compared to previous years.
Please note that these new tax brackets apply to the current tax year. Your tax rate for 2017, and your current tax filings, will remain unchanged. However, if you have any questions about how these new tax brackets may impact your tax planning, please make an appointment with one of our CPAs at our tax firm in Provo.
Married Individuals Filing Jointly
The below table shows the tax brackets and tax rates for married individuals filing jointly, as well as for surviving spouses. These are the brackets and rates outlined in the new tax law, which will be applied to your future tax returns.
| Taxable Income | Tax Rate |
| $19,050 or less | 10% of taxable income |
| $19,051 to $77,400 | $1,905 plus 12% of earnings over $19,050 |
| $77,401 to $165,000 | $8,907 plus 22% of earnings over $77,400 |
| $165,001 to $315,000 | $28,179 plus 24% of earnings over $165,000 |
| $315,001 to $400,000 | $64,179 plus 32% of earnings over $315,000 |
| $400,001 to $600,000 | $91,379 plus 35% of earnings over $400,000 |
| Over $600,000 | $161,379 plus 37% of earnings over $600,000 |
The table below shows the tax brackets that were in effect for 2017, for married individuals filing jointly and surviving spouses. These are the tax brackets and rates that will be applied to your current tax return.
| Taxable Income | Tax Rate |
| $18,650 or less | 10% of taxable income |
| $18,651 to $75,900 | $1,865 plus 15% of earnings over $18,650 |
| $75,901 to $153,100 | $10,452.50 plus 25% of earnings over $75,900 |
| $153,001 to $233,350 | $29,752.50 plus 28% of earnings over $153,100 |
| $233,351 to $416,700 | $52,222.50 plus 33% of earnings over $233,350 |
| $416,701 to $470,700 | $112,728 plus 35% of earnings over $416,700 |
| Over $470,700 | $131,628 plus 39.6% of earnings over $470,700 |
Single Individuals or Married Individuals Filing Separately
The table below shows the tax brackets and rates for individual filers, as outlined by the new tax law. These rates exclude heads of households and surviving spouses. These brackets and rates will apply to your future tax returns.
| Taxable Income | Tax Rate |
| $9,525 or less | 10% of taxable income |
| $9,526 to $38,700 | $952.50 plus 12% of earnings over $9,525 |
| $38,701 to $82,500 | $4,453.50 plus 22% of earnings over $38,700 |
| $82,501 to $157,500 | $14,089.50 plus 24% of earnings over $82,500 |
| $157,501 to $200,000 | $32,089.50 plus 32% of earnings over $157,500 |
| $200,001 to $500,000 | $45,689.50 plus 35% of earnings over $200,000 |
| Over $500,000 | $149,298 plus 37% of earnings over $500,000 |
The tax brackets and rates under the old law are outlined below. These are the brackets and rates that apply to your current tax filing, if you are an individual filer.
| Taxable Income | Tax Rate |
| $9,325 or less | 10% of taxable income |
| $9,326 to $37,950 | $932.50 plus 15% of earnings over $9,325 |
| $37,951 to $91,900 | $5,226.25 plus 25% of earnings over $37,950 |
| $91,901 to $191,650 | $18,713.75 plus 28% of earnings over $91,900 |
| $191,651 to $416,700 | $46,643.75 plus 33% of earnings over $191,650 |
| $416,700 to $418,400 | $120,910.25 plus 35% of earnings over $416,700 |
| Over $418,400 | $121,505.25 plus 39.6% of earnings over $418,400 |
If you have any questions regarding your tax bracket and tax rate for your current tax return or any future returns, please feel free to call our tax firm in Provo. One of our expert CPAs will be happy to assist you.
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