2018 Tax Law Changes

For tax years beginning after December 31, 2017 and before January 1, 2026, seven brackets will apply to individuals: 10%, 12%, 22%, 24%, 32%, 35% and 37%. No change has been made to the filing statuses that apply to individuals. In 2017 all taxpayers (other than those filing Married Filing Separately) became subject to the 35% bracket at the same level of taxable income ($416,700). For tax years beginning after December 31, 2017 and before January 1, 2026, the 2nd highest bracket will now apply based upon filing status. 1 Unmarried taxpayers will have the 35% bracket apply once taxable income exceeds $200,000. 2. Joint filers will have the 35% bracket apply once taxable income exceeds $400,000. 3. Separate filers will have the 35% bracket apply once taxable income exceeds $200,000. 4. For unmarried taxpayers (both Single and Head of Household filing statuses), the top bracket applies to taxable income in excess of $500,000. 5. Married taxpayers filing jointly will have the 37% rate apply once taxable income exceeds $600,000, with one-half that amount ($300,000) being the threshold for married taxpayers filing separate return.