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2018 Tax Rates

Tax rate schedules are provided for tax planning purposes.

Each tax rate applies to a range of income, which is called a tax bracket. Each tax rate applies to a specific range of taxable income, which is income after various deductions have been subtracted.

Single Filing Status

[Tax Rate Schedule X, Internal Revenue Code section 1(c)]

  • 10% on taxable income from $0 to $9,525, plus
  • 12% on taxable income over $9,525 to $38,700, plus
  • 22% on taxable income over $38,700 to $82,500, plus
  • 24% on taxable income over $82,500 to $157,500, plus
  • 32% on taxable income over $157,500 to $200,000, plus
  • 35% on taxable income over $200,000 to $500,000, plus
  • 37% on taxable income over $500,000

Married Filing Jointly or Qualifying Widow(er) Filing Status

[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]

  • 10% on taxable income from $0 to $19,050, plus
  • 12% on taxable income over $19,050 to $77,400, plus
  • 22% on taxable income over $77,400 to $165,000, plus
  • 24% on taxable income over $165,000  to $315,000, plus
  • 32% on taxable income over $315,000  to $400,000, plus
  • 35% on taxable income over $400,000  to $600,000, plus
  • 37% on taxable income over $600,000.

 

Married Filing Separately Filing Status

[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]

  • 10% on taxable income from $0 to $9,525, plus
  • 12% on taxable income over $9,525 to $38,700, plus
  • 22% on taxable income over $38,700 to $82,500, plus
  • 24% on taxable income over $82,500 to $157,500, plus
  • 32% on taxable income over $157,500  to $200,000, plus
  • 35% on taxable income over $200,000 to $300,000, plus
  • 37% on taxable income over $300,000

Head of Household Filing Status

[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]

  • 10% on taxable income from $0 to $13,600, plus
  • 12% on taxable income over $13,600 to $51,800, plus
  • 22% on taxable income over $51,800 to $82,500, plus
  • 24% on taxable income over $82,500 to $157,500, plus
  • 32% on taxable income over $157,500  to $200,000, plus
  • 35% on taxable income over $200,000 to $500,000, plus
  • 37% on taxable income over $500,000.

Capital Gains tax rates

Short-term gains taxed at ordinary income tax rates.

Long-term gains and qualified dividends are now taxed based on income and filing status.

Single

  • 0% for taxable income up to $38,600
  • 15% for taxable income from $38,601 to $425,800
  • 20% for taxable income above $425,800

Married Filing Jointly

  • 0% for taxable income up to $77,200
  • 15% for taxable income from $77,201 to $479,000
  • 20% for taxable income above $479,000

Head of Household

  • 0% for taxable income up to $51,700
  • 15% for taxable income from $51,701 to $452,400
  • 20% for taxable income above $452,400

Married Filing Separately

  • 0% for taxable income up to $38,600
  • 15% for taxable income from $38,601 to $239,500
  • 20% for taxable income above $239,500

Rates on the following remain the same

  • 25% on Depreciation Recapture
  • 28% on Collectibles
  • 28% on qualified small business stock after exclusion

Other Tax Rates in Effect for 2018

In addition to the federal income taxes on ordinary income, there are other taxes that may apply to personal income:

Social Security Tax at a rate of 12.4% on wages and self-employment income up to the annual Social Security wage base of $128,700.

Medicare Tax at a rate of 2.9% on wages and self-employment income.

Additional Medicare Tax at a rate of 0.9% on wages and self-employment income over the following thresholds:

  • Married Filing Jointly: $250,000
  • Single or Head of Household or Qualifying Widow(er): $200,000
  • Married Filing Separately: $125,000