The 2018 tax rates below are as proposed in the bill that will be voted on tomorrow.
The tables aren’t the actual tax you pay on gross income, but on taxable income which is gross less a number of items, including the standard deduction for single $12,000 or joint $24,000. You’ll note, there’s no mention of personal exemptions, the $4,050 per person, including dependents in your household, that’s gone, in favor of this higher standard deduction. Yes, this means that if you itemized in 2017, that (a) you might not be itemizing any longer, and (b) those who still itemize don’t see the benefit of the higher standard deduction, only the loss of exemptions.
Last, if the bill doesn’t pass, I’ll return and edit, so this page will accurately reflect the 2018 rates, once they are certain. Along with a follow up post discussing highlights of the rest of the bill and the impact of the new tax code details.
I’ll be referring back to this article over the next year whenever the tax table is part of the conversation. Check out the new rate table and start planning for 2018.
