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2018 IRS tax brackets and tax rates for individuals and business

by: Anthony Parent   2018-01-25

The Tax Cuts and Jobs Act of 2017, otherwise knows as Tax Reform reduced the amount of tax brackets for individuals and lowered the rates. Tax reform reduced the corporate tax rates to one flat rate. Find out how much you can expect to save with the new federal tax table.

 

For 2019 tax brackets and more, please click to our

Comprehensive Master Tax guide

 

 

Federal Individual Income Tax Tates

2018-2025 Tax Brackets for Single Filing Individuals
If taxable income is: Then the income tax equals:
Not over $9,525 10% of taxable income
Over $9,525 but not over $82,500 $952.50 plus 12% of the excess over $9,525
Over $38,700 but not over $157,500 $4,453.50 plus 22% of the excess over $82,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $45,689.50 plus 35% of the excess over $200,000
Over $500,000 $150,689.50 plus 37% of the excess over $500,000

 

 

2018-2025 tax brackets for Married Filing Joint and Surviving Spouses

If taxable income is: Then Income Tax Equals:
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 $600,000

 

 

2018-2025 tax brackets for Married Filing Separate Returns
If Taxable Income Is: Then Income Tax Equals:
Not over $9,525 10% of taxable income
Over $9,525 but not over $38,700 $952.50 plus 12% of the excess over $38,700
Over $38,700 but not over $82,500 $4,453.50 plus 22% of the excess over $82,500
Over $82,500 but not over $157,500 $14,089.50 plus 34% of the excess over $157,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $200,000
Over $200,000 but not over $300,000 $45,689.50 plus 35% of the excess over $200,000
Over $300,000 $80,689.50 plus 37% of the excess over $300,000

 

 

 

2018-2025 tax brackets for Heads of Households
If Taxable Income is: Then Income Tax Equals:
Not over $13,600 10% of the 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
)ver $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

 

 

2018 Pass-through, sole proprietor and partnership tax rates

 

Tax rates for pass-through entities (S-corps), sole proprietors, and parternships are the tax rates from the personal tax tables above. 

IMPORTANT NOTE: The Quallfied Business Income deduction may apply and could save you a tremendous amount on your taxes. Read about the Qualified Business Income (QBI) deduction here.

 

 

 

2018 Corporate Tax Rates

Tax Reform eliminated the numerous tax brackets for corporations and instead imposed instead a tax rate of 21% tax on C-corp income.

 

Important notes:

 

These tables do not include employment taxes such as Medicare and Social Security taxes. These table do not include dividend or long term capital gains rates. Dividends and long term taxable gains can be taxed up to 23.8% (top rate of 20% plus a 3.8% ObamaCare surcharge).  

 

 

Looking to lower your business income taxes? Click here to find out how the best new tax breaks and how they can be used with the best exisiting tax breaks.

 

 


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