Tax Rates

ttc

2018 Tax Rates

Income Tax Brackets and Rates

In 2018, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows (Tables 1 and 2). The top marginal income tax rate of 37 percent will hit taxpayers with taxable income of $500,000 and higher for single filers and $600,000 and higher for married couples filing jointly.

Rate For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over For Heads of Households, Taxable Income Over
10% $0 $0 $0
12% $9,525 $19,050 $13,600
22% $38,700 $77,400 $51,800
24% $82,500 $165,000 $82,500
32% $157,500 $315,000 $157,500
35% $200,000 $400,000 $200,000
37% $500,000 $600,000 $500,000
Table 1. Tax Brackets and Rates, 2018

Standard Deduction and Personal Exemption

The standard deduction for single filers will increase by $5,500 and by $11,000 for married couples filing jointly (Table 4).

The personal exemption for 2018 is eliminated.

Filing Status Deduction Amount
Single $12,000
Married Filing Jointly $24,000
Head of Household $18,000
Table 2. 2018 Standard Deduction and Personal Exemption

 

Alternative Minimum Tax

The AMT exemption amount for 2018 is $70,300 for singles and $109,400 for married couples filing jointly (Table 7).

Filing Status Exemption Amount
Unmarried Individuals $70,300
Married Filing Jointly $109,400
Table 3. 2018 Alternative Minimum Tax Exemptions

In 2018, the 28 percent AMT rate applies to excess AMTI of $191,500 for all taxpayers ($95,750 for married couples filing joint returns).

Under the TCJA, AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2018, the exemption will start phasing out at $500,000 in AMTI for single filers and $1 million for married taxpayers filing jointly (Table 8.)

Filing Status Threshold
Unmarried Individuals $500,000
Married Filing Jointly $1,000,000
Table 4. 2018 Alternative Minimum Tax Exemption Phaseout Thresholds

 

Earned Income Tax Credit

The maximum Earned Income Tax Credit in 2018 for single and joint filers is $520, if the filer has no children (Table 9). The credit is $3,468 for one child, $5,728 for two children, and $6,444 for three or more children. All of these are relatively small increases from 2017.

Filing Status   No Children One Child Two Children Three or More Children
Single or Head of Household Income at Max Credit $6,800.00 $10,200.00 $14,320.00 $14,320.00
Maximum Credit $520.00 $3,468.00 $5,728.00 $6,444.00
Phaseout Begins $8,510.00 $18,700.00 $18,700.00 $18,700.00
Phaseout Ends (Credit Equals Zero) $15,310.00 $40,402.00 $45,898.00 $49,298.00
Married Filing Jointly Income at Max Credit $6,800.00 $10,200.00 $14,320.00 $14,320.00
Maximum Credit $520.00 $3,468.00 $5,728.00 $6,444.00
Phaseout Begins $14,200.00 $24,400.00 $24,400.00 $24,400.00
Phaseout Ends (Credit Equals Zero) $21,000.00 $46,102.00 $51,598.00 $54,998.00
Table 5. 2018 Earned Income Tax Credit Parameters

 

https://www.irs.gov/pub/irs-drop/rp-17-58.pdf