2018 Income Tax Regulations Every Taxpayer Should Know

In March 2018, the IRS released updated tax brackets, standard deduction amounts, and details on credits and phaseouts. Congress finalized the new tax legislation, bringing notable changes to income tiers, deductions, and exemptions. These updates are essential for accurate tax planning and filing your 2018 returns.

2018 Tax Brackets Overview

Below are the income categories and corresponding tax rates, based on taxable income (not gross income).

Single Filers (excluding spouses and head of household)

• Up to $9,525: 10% tax rate
• $9,525–$38,700: $952.50 plus 12% of the amount over $9,525
• $38,700–$82,500: $4,453.50 plus 22% on excess over $38,700
• $82,500–$157,500: $14,089.50 plus 24% on excess over $82,500
• $157,500–$200,000: $32,089 plus 35% on excess over $157,500
• $200,000–$500,000: $45,689.50 plus 35% on excess over $200,000
• Over $500,000: $150,689.50 plus 37% on any amount above $500,000

Married Filing Jointly and Surviving Spouses

• Up to $19,050: 10%
• $19,050–$77,400: $1,905 plus 12% over $19,050
• $77,400–$165,000: $8,907 plus 22% over $77,400
• $165,000–$315,000: $28,179 plus 24% over $165,000
• $315,000–$400,000: $64,179 plus 32% over $315,000
• $400,000–$600,000: $91,379 plus 35% over $400,000
• Over $600,000: $161,379 plus 37% over $600,000

Head of Household

• Up to $13,600: 10%
• $13,600–$51,800: $1,360 plus 12% over $13,600
• $51,800–$82,500: $5,944 plus 22% over $51,800
• $82,500–$157,500: $12,698 plus 24% over $82,500
• $157,500–$200,000: $30,698 plus 32% over $157,500
• $200,000–$500,000: $44,298 plus 35% over $200,000
• Over $500,000: $149,298 plus 37% over $500,000

Married Filing Separately

• Up to $9,525: 10%
• $9,525–$38,700: $952.50 plus 12% over $9,525
• $38,700–$82,500: $4,453.50 plus 22% over $38,700
• $82,500–$157,500: $14,089.50 plus 24% over $82,500
• $157,500–$200,000: $32,089.50 plus 32% over $157,500
• $200,000–$300,000: $45,689.50 plus 35% over $200,000
• Over $300,000: $80,689.50 plus 37% over $300,000