What Is The Fed Income Tax Rate For 2018-1019?

The new year of 2018 has brought into effect lower tax rates by the Trump administration. The Tax Jobs and Cuts Act of 2017 which was signed on December, 22nd  2017 was implemented from 1st January 2018 to be in force till 2025.  The old 7 bracket structure is retained but with lower taxes for the brackets.  Further Fed income tax rate and other details given below will enable of easy filing of 2018 personal income tax returns by April 15th, 2019.

What does this new Act of 2017 bring in changes to file the income tax return for 2018-19?

The 2018 federal tax rates, personal exemptions, and standard deductions are detailed below for filing income tax 2018.

  • The IRS (Internal Revenue Status of the United States Federal Government) tax brackets remain the same as before with 7 brackets.
  • The individual 2018 income tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
  • The lower tax rate remains unchanged at 10%.
  • The upper tax rate is decreased from 39.6% to 37%.
  • The money earned within a particular bracket is subjected only to that particular rate.
  • The following are the individual taxable income for the 7 brackets
  • $0-9525, $9526-$38,700, $38701-$82,500, $82501-$157,500, $157,501- $200,000, $200,001 – $500,000, $500,001 or anymore above that.
  • For married but filing separately except for the upper limit is the same. The upper limit of the 7 th bracket is $300,000 and more instead of $500,000 and more.  The 6th bracket ends with $200,000 to $300,000.
  • For married joint-filing or qualifying widower the lower limit is from $0- $19,050 and the upper limit for the 7th bracket is $600,000 and more.
  • The taxable income of the head of household the lower tax rate is from $0-$13,600 and $500,000 for the higher tax rate.
  • The standard deductions for the single and married filing separately are $12,000 and for joint filing of a married or qualifying widower is $24,000 and for the head of household is $18,000.
  • Fed Income Tax Rate