2018-Ordinary Income Tax Rates
Answer:
For tax years beginning after December 31, 2017 and before January 1, 2026, seven brackets will apply to individuals: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
No change has been made to the filing statuses that apply to individuals.
In 2017 all taxpayers (other than those filing Married Filing Separately) became subject to the 35% bracket at the same level of taxable income ($416,700). For tax years beginning after December 31, 2017 and before January 1, 2026, the 2nd highest bracket will now apply based upon filing status.
1 Unmarried taxpayers will have the 35% bracket apply once taxable income exceeds $200,000.
2. Joint filers will have the 35% bracket apply once taxable income exceeds $400,000.
3. Separate filers will have the 35% bracket apply once taxable income exceeds $200,000.
4. For unmarried taxpayers (both Single and Head of Household filing statuses), the top bracket applies to taxable income in excess of $500,000.
5. Married taxpayers filing jointly will have the 37% rate apply once taxable income exceeds $600,000, with one-half that amount ($300,000) being the threshold for married taxpayers filing separate return.
No change has been made to the filing statuses that apply to individuals.
In 2017 all taxpayers (other than those filing Married Filing Separately) became subject to the 35% bracket at the same level of taxable income ($416,700). For tax years beginning after December 31, 2017 and before January 1, 2026, the 2nd highest bracket will now apply based upon filing status.
1 Unmarried taxpayers will have the 35% bracket apply once taxable income exceeds $200,000.
2. Joint filers will have the 35% bracket apply once taxable income exceeds $400,000.
3. Separate filers will have the 35% bracket apply once taxable income exceeds $200,000.
4. For unmarried taxpayers (both Single and Head of Household filing statuses), the top bracket applies to taxable income in excess of $500,000.
5. Married taxpayers filing jointly will have the 37% rate apply once taxable income exceeds $600,000, with one-half that amount ($300,000) being the threshold for married taxpayers filing separate return.
