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.