Income Tax Rates, Personal Exemptions & Standard Deductions

2018 Federal Tax Rates, Personal Exemptions, & Standard Deductions

IRS Tax Brackets & Deduction Amounts for Tax Year 2018

2018 Individual Income Tax Brackets

The Federal income tax has 7 rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The amount of tax you owe depends on your income level and filing status.

These tax rates are new and come from the Tax Jobs and Cuts Act of 2017, which was signed into law by President Trump on December 22, 2017. These tax changes are effective as of January 1, 2018.

While there are still 7 tax brackets, the rates have decreased overall. (These lower tax rates will expire in 2025, unless Congress votes to extend them.) The top rate is reduced from 39.6% to 37%. The bottom rate is still 10%, but it now covers more income.

Remember that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.

Here are the 2018 tax rates and brackets organized by filing status:

Single

Taxable Income Tax Rate
$0 – $9,525 10% of taxable income
$9,526 – $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 – $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 – $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 – $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 – $500,000 $45,689.50 plus 35% of the amount over $200,000
$500,001 or more $150,689.50 plus 37% of the amount over $500,000

Married Filing Jointly or Qualifying Widow(er)

Taxable Income Tax Rate
$0 – $19,050 10% of taxable income
$19,051 – $77,400 $1,905 plus 12% of the amount over $19,050
$77,401 – $165,000 $8,907 plus 22% of the amount over $77,400
$165,001 – $315,000 $28,179 plus 24% of the amount over $165,000
$315,001 – $400,000 $64,179 plus 32% of the amount over $315,000
$400,001 – $600,000 $91,379 plus 35% of the amount over $400,000
$600,001 or more $161,379 plus 37% of the amount over $600,000

Married Filing Separately

Taxable Income Tax Rate
$0 – $9,525 10% of taxable income
$9,526 – $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 – $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 – $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 – $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 – $300,000 $45,689.50 plus 35% of the amount over $200,000
$300,001 or more $80,689.50 plus 37% of the amount over $300,000

Head of Household

Taxable Income Tax Rate
$0 – $13,600 10% of taxable income
$13,601 – $51,800 $1,360 plus 12% of the amount over $13,600
$51,801 – $82,500 $5,944 plus 22% of the amount over $51,800
$82,501 – $157,500 $12,698 plus 24% of the amount over $82,500
$157,501 – $200,000 $30,698 plus 32% of the amount over $157,500
$200,001 – $500,000 $44,298 plus 35% of the amount over $200,000
$500,001 or more $149,298 plus 37% of the amount over $500,000

NOTE: There are no personal exemption amounts for 2018.

2018 Standard Deduction Amounts

There are 2 main types of tax deductions: the standard deduction and itemized deductions. You are allowed to claim one type of deduction on your tax return, but not both.

For instance, if you claim the standard deduction, you cannot itemized deductions – and vice versa (if you itemized deductions, you cannot claim the standard deduction). Your can use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), which means it reduces your taxable income.

For tax year 2018, the standard deduction amounts are as follows:

Filing Status Standard Deduction
Single $12,000
Married Filing Jointly or Qualifying Widow(er) $24,000
Married Filing Separately $12,000
Head of Household $18,000

Note that there is an additional standard deduction for elderly and blind taxpayers, which is $1,300 for tax year 2018. This amount increases to $1,600 if the taxpayer is also unmarried.

2018 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

Taxable income over But not over Tax is
$0 $8,544 $0.00 + 1.00% of amount over $0
$8,544 $20,255 $85.44 + 2.00% of amount over $8,544
$20,255 $31,969 $319.66 + 4.00% of amount over $20,255
$31,969 $44,377 $788.22 + 6.00% of amount over $31,969
$44,377 $56,085 $1,532.70 + 8.00% of amount over $44,377
$56,085 $286,492 $2,469.34 + 9.30% of amount over $56,085
$286,492 $343,788 $23,897.19 + 10.30% of amount over $286,492
$343,788 $572,980 $29,798.68 + 11.30% of amount over $343,788
$572,980 AND OVER $55,697.38 + 12.30% of amount over $572,980

Schedule Y — Married/RDP filing jointly, or qualifying widow(er) with dependent child

Taxable income over But not over Tax is
$0 $17,088 $0.00 + 1.00% of amount over $0
$17,088 $40,510 $170.88 + 2.00% of amount over $17,088
$40,510 $63,938 $639.32 + 4.00% of amount over $40,510
$63,938 $88,754 $1,576.44 + 6.00% of amount over $63,938
$88,754 $112,170 $3,065.40 + 8.00% of amount over $88,754
$112,170 $572,984 $4,938.68 + 9.30% of amount over $112,170
$572,984 $687,576 $47,794.38 + 10.30% of amount over $572,984
$687,576 $1,145,960 $59,597.36 + 11.30% of amount over $687,576
$1,145,960 AND OVER $111,394.75 + 12.30% of amount over $1,145,960

Schedule Z — Head of household

Taxable income over But not over Tax is
$0 $17,099 $0.00 + 1.00% of amount over $0
$17,099 $40,512 $170.99 + 2.00% of amount over $17,088
$40,512 $52,224 $639.25 + 4.00% of amount over $40,510
$52,224 $64,632 $1,107.73 + 6.00% of amount over $52,224
$64,632 $76,343 $1,852.21 + 8.00% of amount over $64,632
$76,343 $389,627 $2,789.09 + 9.30% of amount over $76,343
$389,627 $467,553 $31,924.50 + 10.30% of amount over $389,627
$467,553 $779,253 $39,950.88 + 11.30% of amount over $467,553
$779,253 AND OVER $75,172.98 + 12.30% of amount over $779,253

Individual tax rates

  • The maximum rate for individuals is 12.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

Exemption credits

Filing Status/Qualification Exemption amount
Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) $236
Single, married/RDP filing separately, or head of household $118
Dependent $367
Blind $118
Age 65 or older $118
Estates* $10
Trusts* $1

* Estates and Trusts exemption credits are considered “Special credits allowed” under R&TC §17733.

Phaseout of exemption credits

Higher-income taxpayers’ exemption credits are reduced as follows:

Filing status Reduce each credit by: For each: Federal AGI exceeds:
Single $6 $2,500 $194,504
Married/RDP filing separately $6 $1,250 $194,504
Head of household $6 $2,500 $291,760
Married/RDP filing jointly $12 $2,500 $389,013
Qualifying widow(er) $12 $2,500 $389,013

When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.

Standard deductions

The standard deduction amounts for:

Filing status Deduction amount
Single or married/RDP filing separately $4,401
Married/RDP filing jointly, head of household, or qualifying widow(er) $8,802
The minimum standard deduction for dependents $1,050

Reduction in itemized deductions

Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer’s federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.

Filing status AGI threshold
Single or married/RDP filing separately $194,504
Head of household $291,760
Married/RDP filing jointly or qualifying widow(er) $389,013

Earned Income Tax Credit

The California earned income tax credit is available to California households with federal adjusted gross income (AGI) of:

  • Less than $16,751 if there are no qualifying children.
  • Less than $24,951 if there are one or more qualifying children.

The maximum amount of investment income to remain eligible for the credit is $3,699.

Nonrefundable Renter’s credit

This nonrefundable, non-carryover credit for renters is available for:

  • Single or married/RDP filing separately with a California AGI of $41,641 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $83,282 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $76,082
    • Maximum credit of $1,434
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $469

AMT exemption

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $95,373
Single or head of household $71,531
Married/RDP filing separately, estates, or trusts $47,685

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $357,650
Single or head of household $268,237
Married/RDP filing separately, estates, or trusts $178,822

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2017 Individual Income Tax Rate

 
Tax rate Single filers Married filing jointly or qualifying widow(er) Married filing separately Head of household
10% Up to $9,325 Up to $18,650 Up to $9,325 Up to $13,350
15% $9,326 – $37,950 $18,651 – $75,900 $9,326 – $37,950 $13,351 – $50,800
25% $37,951 – $91,900 $75,901 – $153,100 $37,951 – $76,550 $50,801 – $131,200
28% $91,901 – $190,650 $153,101 – $233,350 $76,551 – $116,675 $131,201 – $212,500
33% $190,651 – $416,700 $233,351 – $416,700 $116,676 – $208,350 $212,501 – $416,700
35% $416,701 – $418,400 $416,701 – $470,700 $208,351 – $235,350 $416,701 – $444,550
39.6% $418,401 or more $470,701 or more $235,351 or more $444,551 or more
 Federal income tax return 2017 Amounts 2016 Amounts
Standard deduction for single or

married filing separate taxpayers

 $6,350 $6,300
 Standard deduction for joint, or surviving spouse  $12,700  $12,600
  Standard deduction for head of household taxpayers  $9,350  $9,250
 Personal exemptions

(Phase out  for personal exemption amount is applied for higher income tax payer)

 $4,050  $4050

Standard Deductions for Blind and Senior Taxpayers

Elderly and/or blind taxpayers receive an additional standard deduction amount added to the basic standard deduction. The additional standard deduction for blind taxpayers—taxpayers whose vision is less than 20/200—and for taxpayers who are age 65 or older at the end of the year is:

 $1,250 for married individuals; and

 $1,550 for singles and heads of household

Exemption Amount

The exemption amount generally increases from year to year but has remained the same for years 2016 and 2017 at $4,050 for taxpayers who’s 2017 AGI does not exceed the following amounts:

Filing Status Adjusted Gross Income Start to phase out Adjusted Gross Income in excess of the amounts shown in the table Completely phased out
Married filing jointly or qualifying widow(er) $313,800 $436,300
Head of household $287,650 $410,450
Single $261,500 $384,000
Married filing separately $156,900 $218,150

For taxpayers whose AGI exceeds the listed amounts, the personal exemption is reduced. The reduction in the exemption is equal to 2% for each $2,500 (or part of $2,500) of AGI in excess of the amounts shown in the table.