Taxable Income Brackets for 2018
Ordinary Income Tax Rates
| Marginal Tax Rate | Married Filing Jointly | Single |
|---|---|---|
| 10% | $0 – $19,050 | $0 – $9,525 |
| 12% | $19,051 – $77,400 | $9,526 – $38,700 |
| 22% | $77,401 – $165,000 | $38,701 – $82,500 |
| 24% | $165,001 – $315,000 | $82,501 – $157,500 |
| 32% | $315,001 – $400,000 | $157,500 – $200,000 |
| 35% | $400,001 – $600,000 | $200,000 – $500,000 |
| 37%* | Over $600,000 | Over $500,000 |
*The top rate is effectively 40.8% for those subject to the 3.8% Medicare surtax on net investment income.
Long Term Capital Gains and Qualified Dividends Tax
| Long Term Capital Gain Rate | Married Filing Jointly | Single |
|---|---|---|
| 0% | $0 – $77,200 | $0 – $38,600 |
| 15%* | $77,201 – $479,000 | $38,601 – $425,800 |
| 20%** | Over $479,000 | Over $425,800 |
*Clients in the 15% LTCG tax bracket with MAGI over their 3.8% threshold ($250,000 joint filers/$200,000 single filers) will pay an effective rate of 18.8%.
**The top rate is effectively 23.8% for those subject to the 3.8% Medicare surtax on net investment income.
Trust Tax Rates
| 10% | $0 – $2,550 | These will now apply for the “Kiddie Tax” Beginning in 2018: A child’s unearned income will be taxed at trust tax rates, rather than at the parent’s tax rate. Children affected: Children under age 18 (or under age 24 for full-time students) |
| 24% | $2,551 – $9,150 | |
| 35% | $9,151 – 12,500 | |
| 37% | Over $12,500 |