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Your Guide to Tax Brackets in 2018

By Matthew Frankel, CFP® - Updated Jul 19, 2018 at 3:15PM

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The IRS still has seven tax brackets (for now), but the income thresholds have increased for 2018.

The GOP tax reform plan was recently passed, and it made some pretty significant changes to the federal income tax brackets for 2018. The seven-bracket structure remains the same, but most of the tax rates and income thresholds have changed. While there's a chance that these tax brackets may change if the GOP tax reform efforts are successful, here's a guide to the current 2018 tax brackets and what they could mean to you.

How tax brackets work

First of all, it's important to discuss what is meant by a "tax bracket." Also known as marginal tax rates, tax brackets tell you the tax rate you pay on each dollar of your income.

US Tax forms with money scattered on top.

Image Source: Getty Images.

In other words, if your taxable income falls within the 22% tax bracket for your filing status, that doesn't mean you'll pay the IRS 22% of your taxable income. Instead, you'll pay 10% on some of your income, 12% on another portion of your income, and 22% on income above a certain threshold. Put another way, your marginal tax rate is the rate you'll pay on your highest dollar of income, not an overall tax rate.

The 2018 tax brackets refer to the rates you'll pay on income earned in 2018, which you'll report on the tax return you file in 2019. If you're looking for the tax rates you'll pay on the tax return you'll file in 2018, you need the 2017 tax brackets. And also check out our complete guide to the new tax changes to find out how else your 2018 tax bill could be affected.

The 2018 tax brackets

For 2018, there are seven IRS tax brackets. Here's how they look as of this writing, along with a quick method to calculate your own tax.

For single filers:

Marginal Tax Rate

Taxable Income Range

If Your Income Falls Within This Range, Your Income Tax Is..

10%

$0-$9,525

10% of your taxable income

12%

$9,525-$38,700

$952.50 + 12% of the amount over $9,525

22%

$38,700-$82,500

$4,453.50 + 22% of the amount over $38,700

24%

$82,500-$157,500

$14,089.50 + 24% of the amount over $82,500

32%

$157,500-$200,000

$32,089.50 + 32% of the amount over $157,500

35%

$200,000-$500,000

$45,689.50 + 35% of the amount over $200,000

37%

Over $500,000

$150,689.50 + 37% of the amount over $500,000

Data Source: IRS.

For heads of household:

Marginal Tax Rate

Taxable Income Range

If Your Income Falls Within This Range, Your Tax Is..

10%

$0-$13,600

10% of your taxable income

12%

$13,600-$51,800

$1,360 + 12% of the amount over $13,600

22%

$51,800-$82,500

$5,944 + 22% of the amount over $51,800

24%

$82,500-$157,500

$12,698 + 24% of the amount over $82,500

32%

$157,500-$200,000

$30,698 + 32% of the amount over $157,500

35%

$200,000-$500,000

$44,298 + 35% of the amount over $200,000

37%

Over $500,000

$149,298 + 37% of the amount over $500,000

Data Source: IRS.

For married couples filing jointly:

Marginal Tax Rate

Taxable Income Range

If Your Income Falls Within This Range, Your Tax Is...

10%

$0- $19,050

10% of your taxable income

12%

$19,050-$77,400

$1,905 + 12% of the amount over $19,050

22%

$77,400-$165,000

$8,907 + 22% of the amount over $77,400

24%

$165,000-$315,000

$28,179 + 24% of the amount over $165,000

32%

$315,000-$400,000

$64,179 + 32% of the amount over $315,000

35%

$400,000-$600,000

$91,379 + 35% of the amount over $400,000

37%

Over $600,000

$161,379 + 37% of the amount over $600,000

Data Source: IRS.

For married couples filing separately:

Marginal Tax Rate

Taxable Income Range

If Your Income Falls Within This Range, Your Income Tax Is..

10%

$0-$9,525

10% of your taxable income

12%

$9,525-$38,700

$952.50 + 12% of the amount over $9,525

22%

$38,700-$82,500

$4,453.50 + 22% of the amount over $38,700

24%

$82,500-$157,500

$14,089.50 + 24% of the amount over $82,500

32%

$157,500-$200,000

$32,089.50 + 32% of the amount over $157,500

35%

$200,000-$300,000

$45,689.50 + 35% of the amount over $200,000

37%

Over $300,000

$80,689.50 + 37% of the amount over $300,000

Data Source: IRS.

Standard deductions are nearly doubling

For 2018, the standard deduction is rising siginificantly. The standard deduction lowers the amount of your income that may be considered taxable, and almost any taxpayer who does not itemize their tax deductions can claim it.

Tax Filing Status

2017 Standard Deduction

2018 Standard Deduction

Single

$6,350

$12,000

Head of household

$9,350

$18,000

Married filing jointly

$12,700

$24,000

Married filing separately

$6,350

$12,000

Data Source: IRS.

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