Personal Finance

Find your new tax brackets under the GOP tax plan

Key Points
  • The legislation retains seven brackets.
  • A top rate of 37 percent will apply to singles making $500,000.
GOP tax plan released

The final version of the GOP tax plan is here, and this is what your new bracket will be.

Republican legislators haggled over the Tax Cuts and Jobs Act up to the last minute, garnering final support from holdouts Sens. Bob Corker, R-Tenn., and Marco Rubio, R-Fla.

Though the new law will maintain the same seven-bracket structure that's currently in force, Republicans have tweaked the rates and income levels at which they apply.

Under current law, the seven tax brackets are 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent.

The bill, signed into law by President Donald Trump on Friday, pegs the new rates at 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.

See below for a breakdown of the income tax brackets for singles.

Rate Taxable Income Bracket
10%0 to $9,525
12%$9,525 to $38,700
22%$38,700 to $82,500
24%$82,500 to $157,500
32%$157,500 to $200,000
35%$200,000 to $500,000
37%$500,000 and up

Here are the rates for married couples who file jointly.

Rate Taxable Income Bracket
10%0 to $19,050
12%$19,050 to $77,400
22%$77,400 to $165,000
24%$165,000 to $315,000
32%$315,000 to $400,000
35%$400,000 to $600,000
37%$600,000 and up

Finally, here are the rates for heads of household.

Rate Taxable Income Bracket
10%0 to $13,600
12%$13,600 to $51,800
22%$51,800 to $82,500
24%$82,500 to $157,500
32%$157,500 to $200,000
35%$200,000 to $500,000
37%$500,000 and up

For comparison, here would be the 2018 brackets under the current tax law, adjusted for inflation.

Rate Single Married Filing Jointly Head of Household
10%0 to $9,5250 to $19,0500 to $13,600
15%$9,525 to $38,700$19,050 to $77,400$13,600 to $51,850
25%$38,700 to $93,700$77,400 to $156,150$51,850 to $133,850
28%$93,700 to $195,450$156,150 to $237,950$133,850 to $216,700
33%$195,450 to $424,950$237,950 to $424,950$216,700 to $424,950
35%$424,950 to $426,700$424,950 to $480,050$424,950 to $453,350
39.60%$426,700 and up$480,050 and up$453,350 and up

Financial advisors have been concerned about the rates and brackets because they are instrumental in shaping financial planning strategies, including managing retirees' income in order to get the preferential rate of zero on long-term capital gains and dividends.

"The rates are one thing, but the brackets — we want to know what income levels do these brackets apply," said Keith Fenstad, partner and director of financial planning at Tanglewood Total Wealth Management in Houston.

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