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    Categories: Taxes and Retirement

2018 Tax Rate and Tax Brackets – Trump, House, Senate GOP vs IRS Tax Tables

Given all the tax reforms being proposed under the Trump administration, many Americans are understandably wondering if they will be paying more or less in taxes next year. The answer is that if the GOP tax reform plans are passed, which are highly likely at this stage, then a lot of people will see lower tax effective tax rates in 2018 given increased in tax bracket income thresholds. If they don’t pass the then the published 2018 IRS tax brackets shown below will be in effect.

2018 Income Tax Brackets and Rates under Reconciled/Final Trump GOP Tax bill

Tax RateSingle FilersMarried Filing JointlyMarried, filing separatelyHead of Household
10%Up to $9,525Up to $19,050Up to $9,525Up to $13,600
12%$9,526 to $38,700$19,051 to $77,400$9,526 to $38,700$13,601 to $51,800
22%$38,701 to $82,500$77,401 to $165,000$38,701 to $$82,500$51,801 to $82,500
24%$82,501 to $157,500$165,001 to $315,000$82,501 to $157,500$82,501 to $157,500
32%$157,501 to $200,000$315,001 to $400,000$157,501 to $200,000$157,501 to $200,000
35%$200,001 to $500,000$400,001 to $600,000$200,001 to $300,000$200,001 to $500,000
37%$500,000+$600,000+$300,000+$500,000+

The standard deduction in 2018 will double to $12,000/$24,000 (single/married) under the GOP tax bill. The $4,150 personal exemption will be fully eliminated for 2018.

IRS tax tables (assuming Trump/GOP Tax reforms don’t pass) 

2018 Federal Tax Rates and Marginal Tax Brackets

Tax RateSingleMarried Filing JointlyMarried Filing SeparateHead of Household
10%$0–$9,525$0-$19,050$0–$9,525$0-$13,600
15%$9,526–$38,700$19,051-$77,400$9,526–$38,700$13,601-$51,850
25%$38,701-$93,700$77,401-$156,150$38,701-$78,075$51,851-$133,850
28%$93,701–$195,450$156,151-$237,950$78,076-$118,975$133,851-$216,700
33%$195,451-$424,950$237,951 -$424,950$118,976-$212,475$216,701-$424,950
35%$424,951-$426,700$424,951-$480,050$212,476-$240,025$424,951-$453,350
39.6%over $426,700over $480,050over $240,025over $453,350
Exemption$4,050$4,050$4,050$4,050
Std Deduction$6,350$12,700$6,350$9,350

Trump and House Republican Tax Brackets and Rates (superseded by Reconciled/Final GOP Bill)

House Republicans have released their detailed tax proposals and here is their 2018 tax table reflecting a consolidation of tax rates/brackets from seven to four (excluding 0% rate covered by the standard deduction). Note that 2018 IRS tax brackets (shown above) should be used for comparison as it is unlikely these new rates will be in effect for 2017 (filed in 2018):

Tax RateSingle Filers Married/Joint Filers
0% (Standard Deduction Threshold)$0 to $12,000$25,000
12%$12,001 to $45,000$25,001 to $90,000
25%$45,001 to $200,000$90,001 to $260,000
35%$200,001 to $500,000$260,001 to $1,000,000
39.6%$500,001+$1,000,001+

The standard deduction nearly doubles under the GOP/Trump plan, but the personal exemption and several itemized deductions have been reduced or eliminated. As further updates for 2018 come to light with new legislation, I will update the above table and related articles.

Senate Tax Reform Bill Tax Bracket Tables (superseded by Reconciled/Final GOP Bill)

Below is a summary of the tax tables under the Senate bill (vs current tax bracket)

 

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View Comments (5)

  • Under the new 2018 tax law,will my social security benefit be taxed at 100% income?

    • There are no changes as to how SSI income will be taxed in 2018. Current rules apply, with updated tax brackets.

  • Trump and all his cronies can go straight to hell just like all those on Social Security who feels they are special and should not have to pay their fair share of taxes like other on retirement do. This whole tax thing is nothing more than a joke. It is a bigger joke than what Reagan did.

  • I'm unemployed I don't receive income could I file for return 2017

  • How will this affect 2018 income tax returns? Is there still a possibility of a refund or will I have to pay, since they won't be taking as much out of my paycheck, even though my tax rate went down?