The federal tax brackets for 2017 have been available since before the beginning of the year, and taxpayers have been able to use them to tell what tax rate they'd have to pay based on their income. One added wrinkle with taxes this year has come from the Trump administration, which has proposed a whole new set of federal tax brackets as part of its budget proposal.
What many people don't realize is that it's possible for federal tax brackets to change in the middle of the year, and lawmakers have sometimes made tax reform retroactive to the beginning of the year. You'll find both sets of tax brackets below so that you can be comfortable with whatever happens in the rest of 2017.
Image source: Getty Images.
What the 2017 federal tax brackets are right now
Here are the tax brackets that will apply for 2017 if government officials take no action or decide to make any tax reform laws applicable only to future tax years. The four sets of tax brackets apply to the various filing statuses that you can claim.
For single filers, the tax brackets are:
|
Tax Bracket for Singles |
Income Range |
Tax |
|---|---|---|
|
10% |
$0 to $9,325 |
10% of taxable income |
|
15% |
$9,325 to $37,950 |
$932.50 plus 15% of income above $9,325 |
|
25% |
$37,950 to $91,900 |
$5,226.25 plus 25% of income above $37,950 |
|
28% |
$91,900 to $191,650 |
$18,713.75 plus 28% of income above $91,900 |
|
33% |
$191,650 to $416,700 |
$46,643.75 plus 33% of income above $191,650 |
|
35% |
$416,700 to $418,400 |
$120,910.25 plus 35% of income above $416,700 |
|
39.6% |
More than $418,400 |
$121,505.25 plus 39.6% of income above $418,400 |
Data source: IRS.
For joint filers, the tax brackets are:
|
Tax Bracket for Married Filing Jointly |
Income Range |
Tax |
|---|---|---|
|
10% |
$0 to $18,650 |
10% of taxable income |
|
15% |
$18,650 to $75,900 |
$1,865 plus 15% of income above $18,650 |
|
25% |
$75,900 to $153,100 |
$10,452.50 plus 25% of income above $75,900 |
|
28% |
$153,100 to $233,350 |
$29,752.50 plus 28% of income above $153,100 |
|
33% |
$233,350 to $416,700 |
$52,222.50 plus 33% of income above $233,350 |
|
35% |
$416,700 to $470,700 |
$112,728 plus 35% of income above $416,700 |
|
39.6% |
More than $470,700 |
$131,628 plus 39.6% of income above $470,700 |
Data source: IRS.
For those who qualify as head of household, the tax brackets are:
|
Tax Bracket for Head of Household |
Income Range |
Tax |
|---|---|---|
|
10% |
$0 to $13,350 |
10% of taxable income |
|
15% |
$13,350 to $50,800 |
$1,335 plus 15% of income above $13,350 |
|
25% |
$50,800 to $131,200 |
$6,952.50 plus 25% of income above $50,800 |
|
28% |
$131,200 to $212,500 |
$27,052.50 plus 28% of income above $131,200 |
|
33% |
$212,500 to $416,700 |
$49,816.50 plus 33% of income above $212,500 |
|
35% |
$416,700 to $444,550 |
$117,202.50 plus 35% of income above $416,700 |
|
39.6% |
More than $444,550 |
$26,950 plus 39.6% of income above $444,550 |
Data source: IRS.
Finally, here are tax brackets for married people who file separately:
|
Tax Bracket for Married Filing Separately |
Income Range |
Tax |
|---|---|---|
|
10% |
$0 to $9,325 |
10% of taxable income |
|
15% |
$9,325 to $37,950 |
$932.50 plus 15% of income above $9,325 |
|
25% |
$37,950 to $76,550 |
$5,226.25 plus 25% of income above $37,950 |
|
28% |
$76,550 to $116,675 |
$14,876.25 plus 28% of income above $76,550 |
|
33% |
$116,675 to $208,350 |
$26,111.25 plus 33% of income above $116,675 |
|
35% |
$208,350 to $235,350 |
$56,364 plus 35% of income above $208,350 |
|
39.6% |
More than $235,350 |
$65,814 plus 39.6% of income above $235,350 |
Data source: IRS.
What could happen under the Trump tax plan
Where the uncertainty comes in with respect to 2017's federal tax brackets is that the Trump tax plan has different brackets. The original version of the plan contemplated three sets of tax brackets with two categories: single and married filing jointly.
Below, you can see how those Trump tax brackets would work if enacted in 2017:
|
Trump Tax Bracket for Singles |
Income Range |
Tax |
|---|---|---|
|
12% |
$0 to $37,500 |
12% of taxable income |
|
25% |
$37,500 to $112,500 |
$4,500 plus 25% of income above $37,500 |
|
33% |
More than $112,500 |
$23,250 plus 33% of income above $112,500 |
Data source: IRS.
|
Trump Tax Bracket for Married Filing Jointly |
Income Range |
Tax |
|---|---|---|
|
12% |
$0 to $75,000 |
12% of taxable income |
|
25% |
$75,000 to $225,000 |
$9,000 plus 25% of income above $75,000 |
|
33% |
More than $225,000 |
$46,500 plus 33% of income above $225,000 |
Data source: IRS.
However, a more recent version of the proposal included different tax brackets -- 10%, 25%, and 35% -- and didn't include income levels for the brackets. Therefore, it's uncertain exactly how the final version of tax reform would affect federal tax brackets if they're made retroactive to 2017.
Should you worry about a mid-year tax bracket change?
Many political analysts in Washington believe that there's an increasing chance that tax reform won't even get considered by the end of the year, in which case worries about a mid-year tax bracket change in 2017 would be moot. It's also increasingly likely that even if tax reform does occur, lawmakers will simply apply it prospectively to the 2018 tax year rather than causing an end-of-year disruption of this magnitude.
Nevertheless, until the year comes to a close, taxpayers should at least be aware of the possibility that new federal tax brackets could take effect for the 2017 tax year. Knowing at least the basics about the alternatives will give you a better sense of where you stand no matter what happens.
