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2018-2019 Federal Income Tax Brackets and New Tax Rates

The new tax rules retain seven federal income tax brackets, but tax rates and thresholds have changed.
Jan. 8, 2019
Income Taxes, Taxes
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Update: The IRS will pay tax refunds despite the federal government shutdown, the White House has said.

Income tax-filing season will begin on Jan. 28, and the deadline to submit 2018 tax returns remains April 15 for most taxpayers. (Those in Maine or Massachusetts have until April 17 because of local holidays.)

You can begin preparing your return as soon as you receive all your tax documents, and the IRS recommends filing electronically for a faster refund.

There are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The bracket depends on taxable income and filing status.

Our first set of tables shows the tax brackets and federal income tax rates that apply to the 2018 tax year and relate to the tax return you’ll file in 2019. The second set shows the brackets and rates that apply to the current 2019 tax year and relate to the tax return you’ll file in 2020.

2018 federal income tax brackets

(for taxes due in April 2019)

Expand the filing status that applies to you.

Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 32% of the amount over $157,500
35%$200,001 to $500,000$45,689.50 35% of the amount over $200,000
37%$500,001 or more$150,689.50 37% of the amount over $500,000
Tax rateTaxable income bracketTax owed
10%$0 to $19,05010% of taxable income
12%$19,051 to $77,400$1,905 12% of the amount over $19,050
22%$77,401 to $165,000$8,907 22% of the amount over $77,400
24%$165,001 to $315,000$28,179 24% of the amount over $165,000
32%$315,001 to $400,000$64,179 32% of the amount over $315,000
35%$400,001 to $600,000$91,379 35% of the amount over $400,000
37%$600,001 or more$161,379 37% of the amount over $600,000
Tax rateTaxable income bracketTax owed
10%$0 to $9,52510% of taxable income
12%$9,526 to $38,700$952.50 12% of the amount over $9,525
22%$38,701 to $82,500$4,453.50 22% of the amount over $38,700
24%$82,501 to $157,500$14,089.50 24% of the amount over $82,500
32%$157,501 to $200,000$32,089.50 32% of the amount over $157,500
35%$200,001 to $300,000$45,689.50 35% of the amount over $200,000
37%$300,001 or more$80,689.50 37% of the amount over $300,000
Tax rateTaxable income bracketTax owed
10%$0 to $13,60010% of taxable income
12%$13,601 to $51,800$1,360 12% of the amount over $13,600
22%$51,801 to $82,500$5,944 22% of the amount over $51,800
24%$82,501 to $157,500$12,698 24% of the amount over $82,500
32%$157,501 to $200,000$30,698 32% of the amount over $157,500
35%$200,001 to $500,000$44,298 35% of the amount over $200,000
37%$500,001 or more$149,298 37% of the amount over $500,000

Looking for more on the new tax rules? Dig in with our full breakdown of the law.

2019 federal income tax brackets

(for taxes due in April 2020)

Expand the filing status that applies to you.

Tax rateTaxable income bracketTax owed
10%$0 to $9,70010% of taxable income
12%$9,701 to $39,475$970 12% of the amount over $9,700
22%$39,476 to $84,200$4,543 22% of the amount over $39,475
24%$84,201 to $160,725$14,382.50 24% of the amount over $84,200
32%$160,726 to $204,100$32,748.50 32% of the amount over $160,725
35%$204,101 to $510,300$46,628.50 35% of the amount over $204,100
37%$510,301 or more$153,798.50 37% of the amount over $510,300
Tax rateTaxable income bracketTax owed
10%$0 to $19,40010% of taxable income
12%$19,401 to $78,950$1,940 12% of the amount over $19,400
22%$78,951 to $168,400$9,086 22% of the amount over $78,950
24%$168,401 to $321,450$28,675 24% of the amount over $168,400
32%$321,451 to $408,200$65,497 32% of the amount over $321,450
35%$408,201 to $612,350$93,257 35% of the amount over $408,200
37%$612,351 or more$164,709.50 37% of the amount over $612,350
Tax rateTaxable income bracketTax owed
10%$0 to $9,70010% of taxable income
12%$9,701 to $39,475$970 12% of the amount over $9,700
22%$39,476 to $84,200$4,543 22% of the amount over $39,475
24%$84,201 to $160,725$14,382.50 24% of the amount over $84,200
32%$160,726 to $204,100$32,748.50 32% of the amount over $160,725
35%$204,101 to $306,175$46,628.50 35% of the amount over $204,100
37%$306,176 or more$82,354.75 37% of the amount over $306,175
Tax rateTaxable income bracketTax owed
10%$0 to $13,85010% of taxable income
12%$13,851 to $52,850$1,385 12% of the amount over $13,850
22%$52,851 to $84,200$6,065 22% of the amount over $52,850
24%$84,201 to $160,700$12,962 24% of the amount over $84,200
32%$160,701 to $204,100$31,322 32% of the amount over $160,700
35%$204,101 to $510,300$45,210 35% of the amount over $204,100
37%$510,301 or more$152,380 37% of the amount over $510,300

How tax brackets work

The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates.

  • Being “in” a tax bracket doesn’t mean you pay that federal income tax rate on everything you make. The progressive tax system means that people with higher taxable incomes are subject to higher tax federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
  • The government decides how much tax you owe by dividing your taxable income into chunks — also known as tax brackets — and each chunk gets taxed at the corresponding tax rate. The beauty of this is that no matter which bracket you’re in, you won’t pay that tax rate on your entire income.
  • Example #1: Let’s say you’re a single filer with $32,000 in taxable income. That puts you in the 12% tax bracket in 2018. But do you pay 12% on all $32,000? No. Actually, you pay only 10% on the first $9,525; you pay 12% on the rest. (Look at the tax brackets above to see the breakout.)
2018 tax brackets Example 1_Desktop 
2018 tax brackets Example 1_Mobile 
  • Example #2: If you had $50,000 of taxable income, you’d pay 10% on that first $9,525 and 12% on the chunk of income between $9,526 and $38,700. And then you’d pay 22% on the rest, because some of your $50,000 of taxable income falls into the 22% tax bracket. The total bill would be about $6,900 — about 14% of your taxable income, even though you’re in the 22% bracket.
2018 tax brackets Example 2_Desktop 
Example 2_Mobile_Updated 

How to get into a lower tax bracket and pay a lower federal income tax rate

Two common ways of reducing your tax bill are credits and deductions.

      • Tax credits directly reduce the amount of tax you owe; they don’t affect what bracket you’re in.
      • Tax deductions, on the other hand, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. So if you fall into the 22% tax bracket, a $1,000 deduction saves you $220.

In other words: Take all the tax deductions you can claim — they can reduce your taxable income and could kick you to a lower bracket, which means you pay a lower tax rate.

Being ‘in’ a tax bracket doesn’t mean you pay that rate on everything you make.

Next steps

If you’re ready to file, we can help you choose tax software and find the fastest way to get your refund.

In the longer term, taking steps to reduce your taxable income can go hand in hand with saving for retirement and estate planning to leave more for your heirs.