Individual Tax Changes

Date posted: February 8, 2018

New income tax rates and brackets.

For tax years beginning after December 31, 2017 and before January 1, 2026, seven tax rates apply for individuals: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.  The Act also provides four tax rates for estates and trusts: 10%, 24%, 35%, and 37%.  The specific application of these rates, and the income brackets at which they apply, is shown below.

 

Taxable Income

Tax

Married Individuals Filing Joint Returns and Surviving Spouses

Not over $19,050 10% of taxable income
Over $19,050 but not over $77,400 $1,905 plus 12% of the excess over $19,050
Over $77,400 but not over $165,000 $8,907 plus 22% of the excess over $77,400
Over $165,000 but not over $315,000 $28,179 plus 24% of the excess over $165,000
Over $315,000 but not over $400,000 $64,179 plus 32% of the excess over $315,000
Over $400,000 but not over $600,000 $91,379 plus 35% of the excess over $400,000
Over $600,000 $161,379 plus 37% of the excess over $600,00

Unmarried Individuals

(Other Than Surviving Spouses and Heads of Household)

Not over $9,525 10% of taxable income
Over $9,525 but not over $38,700 $953 plus 12% of the excess over $9,525
Over $38,700 but not over $82,500 $4,454 plus 22% of the excess over $38,700
Over $82,500 but not over $157,500 $14,090 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $32,090 plus 32% of the excess over $157,000
Over $200,000 but not over $500,000 $45,690 plus 35% of the excess over $200,000
Over $500,000 $150,690 plus 37% of the excess over $500,000

Heads of Household

Not over $13,600 10% of taxable income
Over $13,600 but not over $51,800 $1,360 plus 12% of the excess over $13,600
Over $51,800 but not over $82,500 $5,944 plus 22% of the excess over $51,800
Over $82,500 but not over $157,500 $12,698 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $30,698 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $44,298 plus 35% of the excess over $200,000
Over $500,000 $149,298 plus 37% of the excess over $500,000

Married Individuals Filing Separate Returns

Not over $9,525 10% of taxable income
Over $9,525 but not over $38,700 $953 plus 15% of the excess over $9,525
Over $38,700 but not over $82,500 $4,454 plus 22% of the excess over $38,700
Over $82,500 but not over $157,500 $14,090 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $32,090 plus 32% of the excess over $157,500
Over $200,000 but not over $300,000 $45,690 plus 35% of the excess over $200,000
Over $300,000 $80,690 plus 37% of the excess over $300,000

Estates and Trusts

Not over $2,550 10% of taxable income
Over $2,550 but not over $9,150 $255 plus 24% of the excess over $2,550
Over $9,1500 but not over $12,500 $1,839 plus 35% of the excess over $9,150
Over $12,500 $3,012 plus 37% of the excess over $12,500

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This news item was recommended by: John Dyer

John L. Dyer, CPA is a partner of Peter Shannon & Co., a CPA firm located in the Chicagoland area. His credentials include Bachelor of Science in Accountancy at the University of Illinois Champaign and a Master’s Degree of Science in Taxation at DePaul University. His expertise includes taxation for high income individuals, estate, retirement and education planning, business fields of construction, broker/dealers, manufacturing, medical, trucking, and retail.