​Federal Tax Brackets for 2017 and 2018

2017 Federal Tax Brackets (For Taxes Due April 17, 2018)

Here are the 2017 federal tax brackets  for filers who are single, married, or head of household. Depending on how much income you earn, you may fall in the following tax brackets (between 10 percent and 39.6 percent). For the 2017 tax year, your filing deadline is Tuesday, April 17, 2018.

2017 Single Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $9,32510% of taxable Income15%$9,326 to $37,950$932.50 plus 15% of the amount over $9,32525%$37,951 to $91,900$5,226.25 plus 25% of the amount over $37,95028%$91,901 to $191,650$18,713.75 plus 28% of the amount over $91,90033%$191,651 to $416,700$46,643.75 plus 33% of the amount over $191,65035%$416,701 to $418,400$120,910.25 plus 35% of the amount over $416,70039.6%$418,401+$121,505.25 plus 39.6% of the amount over $418,400

2017 Married, Filing Jointly Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $18,65010% of taxable income15%$18,651 to $75,900$1,865 + 15% of the amount over $18,65025%$75,901 to $153,100$10,452.50 + 25% of the amount over $75,90028%$153,101 to $233,350$29,752.50 + 28% of the amount over $153,10033%$233,351 to $416,700$52,222.50 + 33% of the amount over $233,35035%$416,701 to $470,700$112,728 + 35% of the amount over $416,70039.6%$470,701+$131,628 + 39.6% of the amount over $470,700

2017 Married, Filing Separately Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $18,65010% of taxable income15%$18,651 to $75,900$932.50 + 15% of the amount over $9,32525%$75,901 to $153,100$5,226.25 + 25% of the amount over $37,95028%$153,101 to $233,350$14,876.25 + 28% of the amount over $75,55033%$233,351 to $416,700$26,111.25 + 33% of the amount over $116,67535%$416,701 to $470,700$56,364 + 35% of the amount over $208,35039.6%$470,701+$65,814 + 39.6% of the amount over $235,350

2017 Head of Household Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $13,35010% of taxable income15%$13,351 to $50,800$1,335 plus 15% of the amount over $13,35025%$50,801 to $131,200$6,952.50 plus 25% of the amount over $50,80028%$131,201 to $212,500$27,052.50 plus 28% of the amount over $131,20033%$212,501 to $416,700$49,816.50 plus 33% of the amount over $212,50035%$416,701 to $444,550$117,202.50 plus 35% of the amount over $416,70039.6%$444,5551+$126,950 plus 39.6% of the amount over $444,550

2017 Standard Deduction and Personal Exemption

Status Filing Status Deduction Amount Single$6,350Married, Filing Jointly$12,700Head of Household$9,350Personal Exemption$4,050

2018 Federal Tax Brackets

And just so you’re aware of what’s to come, here are the federal tax brackets for 2018  for single, married, and head of household taxpayers. These new tax brackets will be between 10 percent and 37 percent.

The deadline to file taxes for 2018 will be Monday, April 15, 2019.

2018 Single Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $9,52510% of taxable income12%$9,526 to $38,700$952.50 + 12% of the amount over $9,52522%$38,701 to $82,500$4,453.50 + 22% of the amount over $38,70024%$82,501 to $157,500$14,089.50 + 24% of the amount over $82,50032%$157,501 to $200,000$32,089.50 + 32% of the amount over $157,50035%$200,001 to $500,000$45,689.50 + 35% of the amount over $200,00037%$500,001+$150,689.50 + 37% of the amount over $500,000

2018 Married, Filing Jointly Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $19,05010% of taxable income12%$19,051 to $77,400$1,905 + 12% of the amount over $19,05022%$77,401 to $165,000$8,907 + 22% of the amount over $77,40024%$165,001 to $315,000$28,179 + 24% of the amount over $165,00032%$315,001 to $400,000$64,179 + 32% of the amount over $315,00035%$400,001 to $600,000$91,379 + 35% of the amount over $400,00037%$600,000+$161,379 + 37% of the amount over $600,000

2018 Married, Filing Separately Taxable Income Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $9,52510% of taxable income12%$9,526 to $38,700$952.50 + 12% of the amount over $9,52522%$38,701 to $82,500$4,453.50 + 22% of the amount over $38,70024%$82,501 to $157,500$14,089.50 + 24% of the amount over $82,50032%$157,501 to $200,000$32,089.50 + 32% of the amount over $157,50035%$200,001 to $300,000$45,689.50 + 35% of the amount over $200,00037%$300,000+$80,689.50 + 37% of the amount over $300,000

2018 Heads of Households Tax Brackets and Rates

Rate Taxable Income Bracket Tax Owed 10%$0 to $13,60010% of taxable income12%$13,601 to $51,800$1,360 + 12% of the amount over $13,60022%$51,801 to 82,500$5,944 + 22% of the amount over $51,80024%$82,501 to $157,500$12,698 + 24% of the amount over $82,50032%$157,501 to $200,000$30,698 + 32% of the amount over $157,50035%$200,001 to $500,000$44,298 + 35% of the amount over $200,00037%$500,001+$149,298 + 37% of the amount over $500,000

Standard Deductions

While the personal exemption for the 2018 tax year will be nixed, the standard deduction will be bumped up $5,500 for single filers and $11,000 for married couples that are filing jointly.

2018 Standard Deduction

Filing Status Deduction Amount Single$12,000Married Filing Jointly$24,000Head of Household$18,000

The new tax plan has the potential to save a small business owner a sizable amount of money in taxes, explains Michael Dinich, a financial advisor at Your Money Matters.  But, as you may imagine, the bill is fairly complicated. “Small business owners will have to navigate the bill to determine what type of business entity and tax structure is the most advantageous for their situation,” says Dinich.

“Many small businesses use a Schedule C to report business profits and losses. The new bill includes a 20 percent deduction for pass-through income, so it may be the time for a small business owner to consider an LLC or S Corp.” A pass-through entity will add some administrative costs as well as additional setup, accounting, and tax preparation expenses, so business owners will want to determine what cost savings are expected before rushing into a new filling arrangement, explains Dinich.

If you have any questions about what business structure is right for your company  or would like help filing your business taxes, Bizee is here for you. You can speak to a representative at Bizee’s business accounting services  for professional advice, and even get assistance filing your business taxes.