Monday, August 27, 2018

2018 Tax Rates Comparison to 2017 Tax Rates

There are 7 tax rates in both years going from 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017 to 10%, 12%, 22%, 24%, 32%, 35%, and 37% in 2018. Every tax bracket in 2018 is better than 2017 by 3 to 4 points except for the 10%, 32%, and 35% tax brackets which are basically the same for both years. The bracket spread in taxable income is better also. For example, the top rate for joint returns kicked in at $470,700 of taxable income in 2017 but now in 2018 it doesn't start until taxable income reaches $600,000.

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