Here are the new tax brackets in the GOP plan

Key Points
  • The bill trims down income tax brackets to four from seven.
  • The top rate of 39.6 percent remains.
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Here are the new tax brackets in the GOP plan

As part of the tax overhaul, House Republicans are cutting the current income tax brackets to four.

Currently, there are seven tax brackets: 10 percent, 15, percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent.

Under the House bill, The Tax Cuts and Jobs Act, there will be four: 12 percent, 25 percent, 35 percent and 39.6 percent, according to The Wall Street Journal. The bill roughly doubles the standard deduction to $12,000 for single filers and $24,000 for married couples.

  • The 12 percent bracket: This rate applies to single filers starting at $12,000 up to $45,000. For married joint filers, this applies after the $24,000 deduction up to $90,000.
  • The 25 percent rate: This begins at $45,000 for single filers and $90,000 for joint filers who are married.
  • The 35 percent rate: Single filers reach this bracket at $200,000. This rate applies to married filers at $260,000.
  • The 39.6 percent rate: This rate applies at $500,000 for singles and $1 million for married couples.

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