2018 Federal Income Tax Brackets and Standard Deduction (UPDATED)

The House and Senate just passed the Tax Cuts and Jobs Act.  This means that after the President signs the bill into law (which he has done), new tax brackets will be given for the 2018 tax year.

2018 tax brackets and standard deduction

Remember, these numbers are for your 2018 taxes. So you should look at them if you’re changing your withholding for next year–starting on January 1, 2018. But you won’t actually file taxes using these numbers until the spring of 2019.

Personal Exemption and Phase-Out

Gone.  Previously the 2018 personal exemption rate was slated to me $4,150 but the new tax bill has removed this exemption entirely.

2018 Standard Deduction

The standard deduction is jumping A LOT this year.  Here are the standard deductions by tax filing status:

  • Married Filing Jointly/Surviving Spouse: $24,000
  • Heads of Households: $18,000
  • Single: $12,000
  • Married Filing Separately: $12,000

2018 Tax Brackets

So how much will you pay in taxes for 2018? Here’s how the tax rate is applied for the year. Remember, the income listed here is your taxable income–not your gross income.

Married Filing Jointly and Surviving Spouses

Taxable Income Taxes
Up to $19,050 10% of taxable income
Over $19,050 but not over $77,400 $1,905 plus 12% of excess over $19,050
Over $77,400 but not over $165,000 $8,907 plus 22% of the excess over $77,400
Over $165,000 but not over $315,000 $28,179 plus 24% of the excess over $165,000
Over $315,000 but not over $400,000 $64,179 plus 32% of the excess over $315,000
Over $400,000 but not over $600,000 $91,379 plus 35% of the excess over $400,000
Over $600,000 $161,379 plus 37% of the excess over $600,000

Heads of Households

Taxable Income Taxes
Up to $13,600 10% of taxable income
Over $13,600 but not over $51,800 $1,360 plus 12% of excess over $13,600
Over $51,800 but not over $82,500 $5,944 plus 22% of the excess over $51,800
Over $82,500 but not over $157,500 $12,698 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $30,698 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $44,298 plus 35% of the excess over $200,000
Over $500,000 $149,298 plus 37% of the excess over $500,000

Unmarried Individuals (other than Surviving Spouses and Heads of Households:

Taxable Income Taxes
Up to $9,525 10% of taxable income
Over $9,525 but not over $38,700 $952.50 plus 12% of excess over $9,525
Over $38,700 but not over $82,500 $4,453.50 plus 22% of the excess over $38,700
Over $82,500 but not over $157,500 $14,089.50 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $45,689.50 plus 35% of the excess over $200,000
Over $500,000 $150,689.50 plus 37% of the excess over $500,000

Married Individuals Filing Separately:

Taxable Income Taxes
Up to $9,525 10% of taxable income
Over $9,525 but not over $38,700 $952.50 plus 12% of excess over $9,525
Over $38,700 but not over $82,500 $4,453.50 plus 22% of the excess over $38,700
Over $82,500 but not over $157,500 $14,089.50 plus 24% of the excess over $82,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $157,500
Over $200,000 but not over $300,000 $45,689.50 plus 35% of the excess over $200,000
Over $300,000 $80,689.50 plus 37% of the excess over $300,000

Again, remember that these numbers are for the 2018 calendar year. They don’t apply to the 2017 taxes you’ll file this spring. For those numbers, read our 2017 Federal Income Tax Brackets article.

(This information is summarized from the Tax Foundation)

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Topics: Taxes

51 Responses to “2018 Federal Income Tax Brackets and Standard Deduction (UPDATED)”

    • Brad Railsback

      I am not sure how the new tax law changed this. In the past you could deduct repairs in the year the costs were incurred. If it was matainance you had to spread it out over several years, with time period depending on what it was you did. The difference between repairs and maintenance is that repairs are something you did because of damage and maintenance is due to something wearing out. If you had to replace carpeting because of a flood you can write it all off at once. If you replaced it because it wore out the cost will be depreciated over several years.

  1. Kevin Schlatter

    This new tax law really hurts families with children that could itemize deductions and receive the Exemption benefit in 2017. We have 3 children. In 2017, I could itemize + get 5 * $4050 in exemptions. This got my Taxable Income down near $90K. With the new law and removal of the exemptions I can only get my Taxable 2018 income forecast down to $120K. The doubling of the child tax credit makes it a basic wash at the Federal level, but now I have an additional $30K that I have to pay Colorado income tax at 4.63%. A $1400 tax INCREASE. Awful. Why didn’t they just change the tax brackets and leave all the itemization/exemption rules in place?

      • Kevin Schlatter

        Hi Rob. Yes. It is only $24K In 2017 I itemized $26K then also got the $20250 for exemptions to get my taxable income down. Now in 2018 I lose the exemptions vastly increasing my taxable income. Am I missing something? Thanks.

          • Kevin Schlatter

            Hi Anthony, Yes. That child tax credit boost is good, but only helps at the Federal level washing out the lost Exemption benefit for a family my size. At the State level, since my taxable income has increased significantly, I am anticipating a $1400 tax INCREASE. Am I correct in my arithmetic? Am I missing something? Is there a CPA monitoring this board that can chime in? Were our lawmakers not aware of this state impact? Why didn’t they just change the tax brackets and leave all the itemization/exemption rules in place? Thanks.

          • Kent Moyer

            Your math appears correct. Unfortunately only six states use taxable income as their basis for state income tax calculations. The majority use AGI which would be unaffected by the exemption/deduction rework, so even if your legislators were aware they most likely didn’t have a large enough voice to overturn the concessions made to include the expanded child tax credit.

          • Kevin, your situation is nearly identical to mine. I’m glad I stumbled on your post. My question for you is doesn’t this hurt at the Federal level as well? For anyone who itemizes >$24K already, you’re losing the exemptions with only the slight increase in the Child Tax credit to counter it. If you were getting $20K in exemptions + $2K or for the child tax credit after the phaseout, you’re now only getting $6K for the child tax credit. That’s a straight credit so it’s not apples to apples, but isn’t that significantly increasing your tax burden at the Federal level also?

          • From my POV it is even worse – if your 2 children are 18 years old, you loose the exemption you were getting with full-time students and you do NOT get child tax credit at all … So if you were itemizing more than 24k you loose a the full $16,200 deduction (which would have otherwise gone up in 2018). That is a big increase in tax due … definitely bad for families with college students (already costing me a ton), please tell me I’m missing something?

  2. You are correct a lot of middle-class people are going to o be screwed without the exemptions and the standard deduction doesn’t change much if they were already i
    tempting anywhere near the new 24 Grand amount

    • Kent Moyer

      Yes and no. Your standard deduction is going up to $18,000, but not until you file your 2018 taxes in early 2019. Don’t go spending that extra refund this month! 🙂

  3. S. Gurbuz

    Being on a fixed income has no baring on who pays income tax and who does not. You could be on a fixed income and earn $50000.00 or $10000.00, this term used to mean that the income you receive will never go higher, that was back in the days when Government Pensions were not adjusted to the cost of living. Now all Government Pensions be it Canada Pension Plan or Old Age Security or the Garanteed Income Supplement are adjusted in January of each year based on the rise of the Cost of Living.

    • Debbie Fiske

      No, if you itemize he must also itemize, even if he has nothing to itemize, which basically means he looses the deduction or it is limited to what ever he can claim for itemize deductions. You are more than likely better off to file jointly!

  4. What will the 2018 standard deduction be for someone who can be claimed as a dependent on another’s tax return? I used to be $1050, or $350 above earned income. Will it go to $12,000 as well?

  5. I qualify for head of household and am over 65. My standard deduction is $19,600. I have one child tax credit of $2,000. My questions are: Is home mortgage interest still deductible. Are property taxes still deductible? Is state income still deductible, in addition to the $19.,600?

  6. So question on this. We are going to be at the border of 165,000. In order to get the 28,179 for next year taxes, would it better to not put anything into retirement so we get the better tax break? I will have 3-4 total in my household for this year, no child dependents. We do itemize a bit here.

  7. Delia Lamont

    What about Truck Drivers. My husband is over the road driver and gone from home 80%, right now we claim a per diem for every night he is gone, with the new tax law we will not be able to even claim half of the per diem, not including our interest on house because we will max out. Correct?

  8. Erin Johnson

    My daughter receives 100% financial aid from her college, approx. $70k. She also has a local merit scholarship which is paid to the college and is refunded to her, $6k. Her tuition is $52k. Books ~ $2k

    This year, 2017 return for 2016, we were able to claim her as a dependent, and due to how things fell on the 1098-T, we got the AOTC. (Like winning the lottery. We never get anything.)

    The issue is, I keep reading room and board part of financial aid is taxable, and all the money above her ~ $54k in tuition and books. $76k – $54k = $22k.

    Question 1) How do we find out if the financial aid and the other merit scholarship are even taxable? I called a CPA and they said it’s “situational” and they’d need to see the 1098-T, etc. I’d like to figure this out for myself because that CPA wants $425.

    Question 2) Since we can’t claim dependents in 2018, can she file Single, taking her $12k deduction, and pay the ~ 10% tax on the other $10k, assuming it is ALL taxable? Since this isn’t technically earned, is it still earned income rates? CPA said yes, FWIW.

    Thank you. This has been a nightmare.

    • Frank Tang

      Nope. It’s one or the other. You can either take the $24k in standard deduction, or whatever your Schedule A comes up with on Itemized Deductions. Keep in mind that State/Local/Property Tax deduction is capped at $10k. So you’ll need to come up with at least $14k of other deductions to bother with Itemizing.

  9. James B Xiong

    I don’t by what you said reduce alot….ALOT!. Currently a single get some standard 6300 plus 4000 personal exemption equal to over 10000. Now single get 12000 standard but lost to 4000 personal exemption to me it only slightly over 1000 more. But let said a single mom with four children, currently she can file a head of houseshole and get 9000 plus 4000×5 = 20000 of personal exemption she get a total of almost 30000 deductable, but now she lost that 20000 and she only get 18000 to file as head of the househole. 2000 child credit do nothing for her if her chile are 17-18-19 and 20. Now she got no credit 3 of her child in college what is the government talking about support education.???????? After do the calculation she jump the brigde her kids end up on the street instead of college…

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