Experienced Tax
Accountant –To
determine regular tax liability, an individual uses the appropriate tax rate
schedule (or IRS-issued income tax tables for taxable income of less than
$100,000). The Code provides four tax rate schedules for individuals based on
filing status—i.e., single, married filing jointly/surviving spouse, married
filing separately, and head of household—each of which is divided into income
ranges which are taxed at progressively higher marginal tax rates as income
increases. Under pre-Act law, individuals were subject to six tax rates: 10%,
15%, 25%, 28%, 33%, 35%, and 39.6%.
New law. For
tax years beginning after Dec. 31, 2017 and before Jan. 1, 2026, seven tax
rates apply for individuals: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The Act
also provides four tax rates for estates and trusts: 10%, 24%, 35%, and 37%. (Code
Sec. 1(i), as amended by Act
Sec. 11001) The specific application of these rates, and the income brackets at
which they apply, is shown below.
FOR MARRIED
INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING
SPOUSES:
If taxable income is: The tax is:
-------------------- -----------
Not over $19,050 10% of taxable income
Over $19,050 but not
$1,905 plus 12% of the
over $77,400 excess over $19,050
Over $77,400 but not $8,907 plus 22% of the
over $165,000 excess over $77,400
Over $165,000 but not $28,179 plus 24% of the
over $315,000 excess over $165,000
Over $315,000 but not $64,179 plus 32% of the
over $400,000 excess over $315,000
Over $400,000 but not $91,379 plus 35% of the
over $600,000 excess over $400,000
Over $600,000 $161,379 plus 37% of
the
excess
over $600,000
FOR SINGLE INDIVIDUALS
(OTHER THAN HEADS OF HOUSEHOLDS AND
SURVIVING SPOUSES):
If taxable income is: The tax is:
-------------------- ----------
Not over $9,525 10% of taxable income
Over $9,525 but not $952.50 plus 12% of the
over $38,700 excess over $9,525
Over $38,700 but not $4,453.50 plus 22% of the
over $82,500 excess over $38,700
Over $82,500 but not $14,089.50 plus 24% of the
over $157,500 excess over $82,500
Over $157,500 but not $32,089.50 plus 32% of the
over $200,000 excess over $157,000
Over $200,000 but not $45,689.50 plus 35% of the
over $500,000 excess over $200,000
Over $500,000 $150,689.50 plus 37%
of the
excess
over $500,000
FOR HEADS OF
HOUSEHOLDS:
If taxable income is: The tax is:
-------------------- -----------
Not over $13,600 10% of taxable income
Over $13,600 but not $1,360 plus 12% of the
over $51,800 excess over $13,600
Over $51,800 but not $5,944 plus 22% of the
over $82,500 excess over $51,800
Over $82,500 but not $12,698 plus 24% of the
over $157,500 excess over $82,500
Over $157,500 but not $30,698 plus 32% of the
over $200,000 excess over $157,500
Over $200,000 but not $44,298 plus 35% of the
over $500,000 excess over $200,000
Over $500,000 $149,298 plus 37% of
the
excess
over $500,000
FOR MARRIEDS FILING
SEPARATELY:
If taxable income is: The tax is:
-------------------- ----------
Not over $9,525 10% of taxable income
Over $9,525 but not $952.50 plus 12% of the
over $38,700 excess over $9,525
Over $38,700 but not $4,453.50 plus 22% of the
over $82,500 excess over $38,700
Over $82,500 but not $14,089.50 plus 24% of the
over $157,500 excess over $82,500
Over $157,500 but not $32,089.50 plus 32% of the
over $200,000 excess over $157,500
Over $200,000 but not $45,689.50 plus 35% of the
over $300,000 excess over $200,000
Over $300,000 $80,689.50 plus 37% of
the
excess
over $300,000
FOR ESTATES
AND TRUSTS:
If taxable income is: The tax is:
--------------------- -----------
Not over $2,550 10% of taxable income
Over $2,550 but not $255 plus 24% of the
over $9,150 excess over $2,550
Over $9,150 but not $1,839 plus 35% of the
over $12,500 excess over $9,150
Over $12,500 $3,011.50 plus 37% of
the
excess
over $12,500
We're here to help! For no obligation free consultation
contact us today!
Amare
Berhie, Senior Accountant
(651) 300-4777
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