Here are the comparative tax brackets between 2017 and 2018 for the four filing statuses, with the bracket dollar change shown in the last column. The marriage penalty is eliminated through the 32% bracket, at the expense of unmarried taxpayers.
| UNMARRIED INDIVIDUALS, TAXABLE INCOME OVER | ||||
| RATE | TAXABLE OVER | BRACKET | ||
| 2017 | 2018 | 2017 | 2018 | CHANGE |
| 10% | 10% | $- | $- | |
| 15% | 12% | 9,325 | 9,525 | 200 |
| 25% | 22% | 37,950 | 38,700 | 750 |
| 28% | 24% | 91,900 | 82,500 | (9,400) |
| 33% | 32% | 191,650 | 157,500 | (34,150) |
| 35% | 35% | 416,700 | 200,000 | (216,700) |
| 39.6% | 37% | 418,400 | 500,000 | 81,600 |
For unmarried taxpayers, the fourth bracket begins $9,400 sooner than under the previous law. The bracket tightening is even more onerous over the next two brackets. However, due to the rate reductions, singles fare no worse than under last year’s rates, and generally better (due to rates and brackets).
| MARRIED FILING JOINT, TAXABLE INCOME OVER | ||||
| RATE | TAXABLE OVER | BRACKET | ||
| 2017 | 2018 | 2017 | 2018 | CHANGE |
| 10% | 10% | $- | $- | |
| 15% | 12% | 18,650 | 19,050 | 400 |
| 25% | 22% | 75,900 | 77,400 | 1,500 |
| 28% | 24% | 153,100 | 165,000 | 11,900 |
| 33% | 32% | 233,350 | 315,000 | 81,650 |
| 35% | 35% | 416,700 | 400,000 | (16,700) |
| 39.6% | 37% | 470,700 | 600,000 | 129,300 |
The brackets are double the single brackets through the 32% bracket, eliminating the ‘marriage penalty’ except for the highest income taxpayers.
| HEAD OF HOUSEHOLD, TAXABLE INCOME OVER | ||||
| RATE | TAXABLE OVER | BRACKET | ||
| 2017 | 2018 | 2017 | 2018 | CHANGE |
| 10% | 10% | $- | $- | |
| 15% | 12% | 13,350 | 13,600 | 250 |
| 25% | 22% | 50,800 | 51,800 | 1,000 |
| 28% | 24% | 131,200 | 82,500 | (48,700) |
| 33% | 32% | 212,500 | 157,000 | (55,500) |
| 35% | 35% | 416,700 | 200,000 | (216,700) |
| 39.6% | 37% | 444,500 | 500,000 | 55,500 |
Like single filers, the narrowing of brackets is offset by the reduced tax rates.
| MARRIED FILING SEPARATELY, TAXABLE INCOME OVER | ||||
| RATE | TAXABLE OVER | BRACKET | ||
| 2017 | 2018 | 2017 | 2018 | CHANGE |
| 10% | 10% | $- | $- | |
| 15% | 12% | 9,325 | 9,525 | 200 |
| 25% | 22% | 37,950 | 38,700 | 750 |
| 28% | 24% | 76,550 | 82,500 | 5,950 |
| 33% | 32% | 116,675 | 157,500 | 40,825 |
| 35% | 35% | 208,350 | 200,000 | (8,350) |
| 39.6% | 37% | 235,350 | 300,000 | 64,650 |
The married filing separately rates are now identical to the single rates. I have not yet analyzed how these changes effect MFS taxpayers.
This data is thought to be correct, but there may be errors here. This only shows the changes in the new ‘Tax Cuts and Jobs Act’ relating to tax rates and brackets–not how “Taxable Income” is calculated. And that’s where the meat of the changes are for many taxpayers.