The GOP tax bill, which was passed in December 2017, made some sweeping changes, including adjusting the income tax brackets. But many Americans are still confused about the new law and how it will affect them.
"More than one-quarter of Americans (28 percent) are unsure of what exactly changed with the passage of the Tax Cuts and Jobs Act of 2017," NerdWallet reports in its 2019 Tax Study, "and about half (48 percent) don't understand how it affects their tax bracket."
NerdWallet's 2018 Tax Study found that an increasing share of Americans don't know their income tax bracket at all: 48 percent, compared to 40 percent in 2016.
While the new law maintains the seven-bracket system, Congress tweaked the rates and income levels at which they apply. The seven tax brackets used to be 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent. Those are the brackets that applied to the tax return you filed in 2018.
The new rates, which relate to the tax return you'll file in 2019, are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
NerdWallet broke down the 2018 and 2019 federal income tax brackets. Below are the 2018 brackets, which relate to the tax return you're filing in 2019.
2018 tax brackets and rates for single filers