Call us: 888.727.8796
Tax problems solved.
No matter where in the world you are.

The IRSMedic MasterGuide to 2019 Federal Tax Table, Rates, and Brackets

by: Anthony Parent   2019-07-27

Everyone needs to pay tax of one kind or another, so we’ve created a comprehensive guide to most of the ways the IRS and your state will charge taxes to you. From federal tax brackets and standard deductions to corporate, estate, and gift taxes, we’ll share the latest information from the IRS and state agencies on what you’ll need to pay.

 

Here are the types of taxes we cover in this comprehensive guide:

 

  • Federal income taxes

  • State income taxes

  • Payroll taxes

  • Taxes on your pay stub

  • Sales and use taxes

  • Dividend taxes

  • Taxes on interest earned

  • Gift taxes

  • Estate taxes

  • Inheritance taxes

  • Capital gains taxes

  • Taxes on trusts

  • Business pass through taxes

  • Corporation taxes

 

Let’s get into it.


 

2019 Federal Income Taxes

Federal income taxes are levied by the IRS on your overall income. The amount of tax you’ll need to pay is determined by your income level, less your standard deduction and any tax credits. You’ll then need to pay tax depending on the tax bands that your total income falls into and how you’re filing your taxes. You will report these taxes on a 1040 tax return, together with any relevant schedules.


 

The Different Ways to File Your Taxes

The IRS lets you file a 1040 tax return under various different criteria:

 

  • Single: You are only filing the 1040 to report your own income.

  • Married, Filing Jointly: You are filing a joint 1040 that includes income for yourself and your spouse.

  • Married, Filing Separately: You and your spouse are each filing your own 1040.

  • Head of Household: You are single, separated, or divorced, you pay more than half the cost of keeping up a home, and a qualifying person (like a child or relative) lives with you for more than half the year.


 

Federal Income Tax 2019 Standard Deduction

The standard deduction is the amount you deduct from your earnings to calculate your taxable amount. The 2019 federal income tax standard deductions are:

 

  • Single: $12,200

  • Married Filing Separately: $12,200

  • Head of Household: $18,350

  • Married Filing Jointly: $24,400


 

How to Calculate How Much Federal Income Tax You Owe

Here’s a quick and simple way to work out how much you might owe the IRS in federal income tax. You should only take this calculation as a quick guideline—because everyone’s tax circumstances are different, you should speak to your accountant to get an accurate idea of how much you might owe.

 

  1. Work out your total earnings for the tax year.

  2. Deduct the standard deduction, based on how you’re filing.

  3. This gives you your basic taxable income.

  4. Take into account any tax credits or other circumstances that could reduce the tax you owe.

  5. Apply this to your earnings to work out your total taxable amount.

  6. Look up that amount in one of the tables below to calculate your federal income tax. 

 

For example, if you’re married, filing jointly and your combined income was $75,000, you would deduct $24,400 to leave a taxable income of $50,600, which would put you in the 10% bracket for the first $19,400 of income and the 12% bracket for the remaining $31,200. This means you would pay $5,684 in federal income tax—$1,940 in the 10% bracket and $3,744 in the 12% bracket.

 

Information from the U.S. Government on Federal Taxes

 


 

Federal Income Tax 2019 Tax Brackets: Single Filers

The tax brackets if you’re just filing a 1040 for yourself are:

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $9,700

10% of taxable income

12%

$9,701 to $39,475

$970 plus 12% of the amount over $9,700

22%

$39,476 to $84,200

$4,543 plus 22% of the amount over $39,475

24%

$84,201 to $160,725

$14,382.50 plus 24% of the amount over $84,200

32%

$160,726 to $204,100

$32,748.50 plus 32% of the amount over $160,725

35%

$204,101 to $510,300

$46,628.50 plus 35% of the amount over $204,100

37%

$510,301 or more

$153,798.50 plus 37% of the amount over $510,300


 

Federal Income Tax 2019 Tax Brackets: Married, Filing Jointly

The tax brackets if you’re filing a 1040 for yourself and your spouse are:

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $19,400

10% of taxable income

12%

$19,401 to $78,950

$1,940 plus 12% of the amount over $19,400

22%

$78,951 to $168,400

$9,086 plus 22% of the amount over $78,950

24%

$168,401 to $321,450

$28,765 plus 24% of the amount over $168,400

32%

$321,451 to $408,200

$65,497 plus 32% of the amount over $321,450

35%

$408,201 to $612,350

$93,257 plus 35% of the amount over $408,200

37%

$612,351 or more

$164,709.50 plus 37% of the amount over $612,350


 

Federal Income Tax 2019 Tax Brackets: Married, Filing Separately

The tax brackets if you and your spouse are each filing your own 1040s are:

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $9,700

10% of taxable income

12%

$9,701 to $39,475

$970 plus 12% of the amount over $9,700

22%

$39,476 to $84,200

$4,543 plus 22% of the amount over $39,475

24%

$84,201 to $160,725

$14,382.50 plus 24% of the amount over $84,200

32%

$160,726 to $204,100

$32,748.50 plus 32% of the amount over $160,725

35%

$204,101 to $306,175

$46,628.50 plus 35% of the amount over $204,100

37%

$306,176 or more

$82,354.75 plus 37% of the amount over $306,175


 

Federal Income Tax 2019 Tax Brackets: Head of Household

The tax brackets if you’re filing a 1040 as a head of household are:

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $13,850

10% of taxable income

12%

$13,851 to $52,850

$1,385 plus 12% of the amount over $13,850

22%

$52,851 to $84,200

$6,065 plus 22% of the amount over $52,850

24%

$84,201 to $160,700

$12,962 plus 24% of the amount over $84,200

32%

$160,701 to $204,100

$31,322 plus 32% of the amount over $160,700

35%

$204,101 to $510,300

$45,210 plus 35% of the amount over $204,100

37%

$510,301 or more

$152,380 plus 37% of the amount over $510,300

 

It’s not just the federal government that taxes you based on how much you earn, most states also levy a state income tax.

 

Information from IRS Medic on Federal Income Tax Brackets

 


 

2019 State Income Tax

Depending on where you live, you may also need to pay a state tax. Most states tax earnings in some way—the only ones that don’t are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee and New Hampshire do not tax earnings but they do tax interest and dividend income. 

 

Different states tax income in different ways—some will charge a “progressive” tax rate, similar to federal income tax. For example, they may charge 2 percent on the first $10,000 of income, 3 percent on the next $20,000 etc. Most states will also allow you to deduct a standard deduction, similar to federal income tax.

 

Because state income tax varies so much, we recommend checking with your state’s Department of Revenue to understand the different tax rates you might be charged and any standard deductions that might apply. 

 

If you’re a salaried employee or someone who earns wages as part of a payroll, you will also need to pay payroll tax.


 

2019 Payroll Tax

If you’re an employee, you and your employer will need to pay payroll tax on your earnings and possibly some of your benefits. The total amount of payroll tax, also known as FICA, Social Security, and Medicare tax is 15.3 percent of your total earnings. This is split evenly between you and your employer, so you each pay 7.65 percent of your total wages or salary. There is no “standard deduction” for payroll taxes, they are due on every cent that you earn.

 

Calculating Payroll Tax

Here’s how to work out how much payroll tax you’ll need to pay:

 

  1. Work out the total value of your wages or salary.

  2. Add in any taxable benefits.

  3. Multiply the total amount by 7.65 percent.

  4. That amount will be deducted from your pay stub as employee payroll tax.

  5. Your employer will also need to pay the same amount as their part of the payroll tax.

 

For example, if you warn $4,000 a month, you will pay $306 in employee payroll taxes and your employer will also pay $306.

 

Information from IRS Medic on Employment Taxes

 

 

Information from the IRS on Employment Taxes

 


 

Taxes on Your Pay Stub

Most employees will need to pay the following taxes on their pay stubs:

 

  • Federal income tax

  • State income tax

  • Payroll tax, employee portion

 

These will all be deducted from your gross wages, with the remainder being your net wages. 


 

2019 Sales and Use Tax

Sales and use taxes are slightly different to other types of taxes—you pay sales and use taxes when you purchase a taxable product or service. These taxes are added on by the retailer or service provider as a fixed amount on the total price of goods. The organization selling the goods then pays this sales tax to their local, regional, or state government on a regular basis. The IRS themselves do not charge sales tax. 

 

Sales and use taxes can vary by state, region, county, and city and typically range between five and ten percent, with an average rate of around 7.4 percent.


 

2019 Dividend Tax

If you receive dividends as a result of investing in a business, you will probably need to pay taxes on any money you receive. There are two main types of dividends—ordinary dividends and qualified dividends.

 

  • Ordinary dividends are the most common type of dividend and you will pay taxes on them as you would regular earnings, so you’ll pay both federal and state income tax.

  • Qualified dividends are taxed as capital gains, and you’ll be taxed at a 20 percent, 15 percent, or 0 percent rate, depending on your tax bracket. More on capital gains taxes later in this gude.

 

Dividend taxes are due on more than just individual stocks or investments. If you have assets invested in Exchange Traded Funds (ETFs), mutual funds, and some other types of investment, you will also need to pay dividend taxes.

 

Information from the IRS on Dividend Tax

 


 

2019 Taxes on Interest

If you receive interest from a bank, credit union, or through other means, you will need to pay taxes on any amounts received. Money earned from interest is taxed in the same way as normal earnings, so you will need to pay federal income and state income tax on the total amount. 

 

Information from the IRS on Taxes on Interest

 


 

2019 Gift Tax

Gift taxes are taxes you will pay on money or property that you give to other people. There are two ways to reduce the amount of tax that you need to pay on gifts.

 

2019 Annual Gift Tax Exclusion of $15,000

You can give away up to $15,000 to an individual in a tax year without having to worry about paying gift taxes. Note that this exemption applies to each individual, so you could give away $45,000 to three people without being concerned with gift tax.

 

2019 Gift Taxes Lifetime Exclusion Amount

In 2019, you also get a lifetime exclusion amount on gift taxes of $11.4 million. This means you can give away over $11 million during your life, and it’s unlikely you would need to pay tax on those amounts. You will probably still need to file a gift tax return, but it’s likely you won’t owe any tax due to the lifetime exclusion amount. Instead, the total amount that you give away reduces your lifetime exclusion amount.

 

This comes with an important caveat: That lifetime exclusion amount is shared with the total value of your estate when calculating estate taxes on money you leave after you die. So if you give away $2 million in gifts during your lifetime, the exclusion value applied to your estate would only be $9.4 million, and the estate would need to pay taxes on any value over that amount.

 

The gift and estate tax brackets are the same and are shown after the section on estate taxes below.

 

Information from IRSMedic on Gift Tax

 

 

Information from the IRS on Gift Tax

 


 

2019 Estate Tax

Estate taxes are the taxes that will be paid out of your assets after you die, prior to any money being paid to your heirs. Estate taxes may be due to both the IRS and in certain states. The amount of estate tax that may need to be paid on your assets is reduced by your lifetime exclusion amount. 

 

States that Levy Estate Taxes

The following estates and regions will levy estate taxes. Note that these states and regions will apply their own exclusion amounts on estate assets: District of Columbia, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington.

 

2019 Estate Taxes Lifetime Exclusion Amount

In 2019, your estate gets a lifetime exclusion amount on estate taxes of $11.4 million. This means the first $11.4 million in value of your estate will not have any IRS taxes due. However, if you have given away significant gifts during your life, this will reduce the lifetime exclusion amount. For example, if you give away $5 million, the lifetime exclusion amount applied to your estate would be $6.4 million and any assets above that amount would be subject to estate tax.

 

Information from IRSMedic on Estate Tax

 

 

Information from the IRS on Estate Tax

 


 

2019 Gift and Estate Tax Brackets

Taxes charged on gifts of property or money, or on an estate’s assets are shown below. These taxes are typically charged on amounts greater than the lifetime exclusion amount. 

 

Value of Estate or Gifts

Tax Rate

$0–$10,000

18%

$10,000–$20,000

20%

$20,000–$40,000

22%

$40,000–$60,000

24%

$60,000–$80,000

26%

$80,000–$100,000

28%

$100,000–$150,000

30%

$150,000–$250,000

32%

$250,000–$500,000

34%

$500,000–$750,000

37%

$750,000–$1,000,000

39%

$1,000,000+

40%


 

Inheritance Tax

It’s important not to confuse inheritance taxes and estate taxes, as they have some very important differences. 

 

  • Estate taxes are charged by the IRS and some states on the total value of assets that a deceased person leaves behind in their estate, and are paid from the estate prior to money being paid to heirs.

  • Inheritance taxes are only charged by a handful of states on the total amount that the heirs receive from the estate—the heirs pay the taxes from their inheritance.

 

States that Charge Inheritance Tax

The IRS does not levy taxes on inheritance, and only six states charge an inheritance tax. Those states are: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Each state charges inheritance tax in a slightly different way. 

 

States normally provide an exemption amount, meaning heirs will not pay inheritance tax on a portion of the money they receive. For example, Maryland exempts the first $5 million from inheritance taxes. 

 

Any amounts over the exclusion limits will be taxable, with most states charging a tax of between 1 and 16 percent. The inheritance tax percentage varies depending on the heir’s relationship to the deceased person and how much money they are receiving. 


 

Capital Gains Tax

Capital gains tax is charged on profits from the sale of an asset. This might include investments, property, business, land, or other areas. Capital gains tax comes in two versions, short-term capital gains tax and long-term capital gains tax.

 

Short-Term Capital Gains Tax

Short-term capital gains tax is payable on any assets that you have owned for a year or less. Short-term capital gains tax is taxed at the same rate as regular income, so refer to the federal income tax brackets at the start of this guide for more information.

 

Long-Term Capital Gains Tax

Long-term capital gains tax is payable on assets that you have owned for more than a year. Long-term capital gains tax is charged in brackets according to your filing status. We’ve shared those tax brackets below.

 

2019 Long-Term Capital Gains Tax Brackets: Single Filer

The amount of tax you’ll pay on long-term capital gains filing as a single person are:

 

Tax Rate

Capital Gains Income

0%

$0 to $39,375

15%

$39,376 to $434,550

20%

$434,551 or more


 

2019 Long-Term Capital Gains Tax Brackets: Married, Filing Jointly

The amount of tax you’ll pay on long-term capital gains filing as MFJ are:

 

Tax Rate

Capital Gains Income

0%

$0 to $78,750

15%

$78,751 to $488,850

20%

$488,851 or more


 

2019 Long-Term Capital Gains Tax Brackets: Married, Filing Separately

The amount of tax you’ll pay on long-term capital gains filing as MFS are:

 

Tax Rate

Capital Gains Income

0%

$0 to $39,375

15%

$39,376 to $244,425

20%

$244,426 or more


 

2019 Long-Term Capital Gains Tax Brackets: Head of Household

The amount of tax you’ll pay on long-term capital gains filing as HOH are:

 

Tax Rate

Capital Gains Income

0%

$0 to $52,750

15%

$52,751 to $461,700

20%

$461,701 or more


 

Information from IRS Medic on Capital Gains Tax

 

 

Information from the IRS on Capital Gains Tax

 


 

Taxes on Trusts

Trusts and estates that generate income after a person’s death are subject to taxation. Trusts must pay taxes on this income as follows:


 

Taxable Income Amount

Tax Rate

Under $2,600

10% of the taxable income

Over $2,600 but under $9,300

$260 + 24% of the amount over $2,600

Over $9,300 but under $12,750

$1,868 plus 35% of the excess over $9,300

Over $12,750

$3,075.50 plus 37% of the excess over $12,750

Information from the IRS on Taxes on Trusts

 

 

Business Pass-Through Entity Tax

Most small businesses including Limited Liability Companies (LLCs), S Corporations, Partnerships, and Sole Proprietors do not pay taxes themselves. Instead, income generated by the business is reported and taxed on the 1040 federal returns and the state returns filed by the business owners or beneficiaries. The 1040 return will typically have several additional “schedules” attached to it to represent income from the business and any special type of taxes owed, typically self-employment tax.

 

  • Federal income tax is payable on any business earnings at the standard bands for regular income. The standard deduction applies as normal.

 

  • State income tax is payable on any business earnings at the standard bands for regular income determined by your state. Your standard state tax deduction applies as normal.

 

  • Payroll tax will apply as normal on any wages paid. You will also need to pay the employer portion of this tax on any wages. This means if you employ yourself, you will be liable for both the employer and employee portions of the tax, a total of 15.3 percent.

 

  • Self-employment tax will apply to any earnings paid to yourself or other business owners that are not paid through a formal payroll arrangement. Self-employment tax is payable at the same rate as payroll tax, 15.3 percent. 

 

Qualified Business Income Deduction

The Tax Cuts and Jobs Act introduced a Qualified Business Income (QBI) deduction for pass-through entities. The QBI is typically calculated as a deduction of 20 percent of the net profits of the business. This comes with a few important caveats:

 

  • QBI does not apply to any income paid out as part of a formal payroll process, so you cannot take salaries and wages that you pay payroll tax on as part of your QBI calculations.

  • QBI applies only to taxable amounts for federal income tax purposes.

  • QBI does not apply to self-employment, payroll, or state taxes.

  • There are limitations on the amount of QBI that a business owner can deduct.

 

Learn more about QBI here


 

Corporation Tax

The Tax Cuts and Jobs Act eliminated the complex way that C Corporations needed to pay tax on business profits. There is now a flat, 21 percent rate that is taxed on profits made by C Corporations. 


 

 


 


Categories


Related articles

2018 IRS tax brackets and tax rates for individuals and business
Asset protection and tax savings with captive insurance. Is it right for you?
EMPLOYMENT PRIVACY POLICY DISCLAIMER
© 2018 Parent and Parent LLP All rights reserved.
Parent and Parent LLP, 144 South Main Street, Wallingford, CT 06492,
Tel. +1.203.269.6699 Fax +1.203.269.0385
IRS Medic: Parent & Parent, LLP
144 South Main Street Wallingford, CT 06492
Phone: (203) 269-6699