{"id":39754,"date":"2018-09-14T14:39:10","date_gmt":"2018-09-14T19:39:10","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=39754"},"modified":"2020-02-20T10:23:29","modified_gmt":"2020-02-20T16:23:29","slug":"new-tax-brackets","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-reform\/new-tax-brackets\/","title":{"rendered":"New Tax Brackets (Tables): What\u2019s Changed With Tax Reform"},"content":{"rendered":"

Editor’s note: This post outlines how the tax brackets changed with tax reform. To find updated tax bracket information, review our “What are the tax brackets?<\/a>” post.<\/em><\/p>\n

The Tax Cuts and Job Act contains hundreds of changes that affect taxable income, including new tax brackets. To compare the old and new information, view the 2017 and 2018 tax tables below. For additional context, read on and we\u2019ll give you an outline of the new tax brackets and what you need to know.<\/p>\n

\"2017\"2018<\/p>\n

Note: the brackets for Qualifying Widow(ers) are the same as for Married Filing Jointly Status.<\/p>\n

2018 Tax Brackets \u2013 What\u2019s the Same<\/h2>\n

To understand what\u2019s new for the 2018 tax brackets and in the years beyond, it\u2019s helpful to start out with what has not changed. \u00a0U.S. taxes are still based on a \u201cprogressive\u201d system, which means your tax rate increases as your taxable income amount increases. Said differently, only the income that falls in a given range is taxed at that corresponding tax rate.<\/p>\n

Keep in mind, taxable income is the basis for the values in the tables above. It is calculated as gross income, less any adjustments, less either <\/em>the sum of itemized deductions or the standard deduction, whichever is larger.<\/p>\n

Tax Reform Brackets \u2013 What\u2019s Different<\/h2>\n

What has changed is that the actual numbers inside of those ranges are now different as are the marginal rates. In general, the tax brackets for 2018 and beyond are slightly broader, and the rates are slightly lower, except for the lowest tax bracket (see marginal tax rates in charts above). The new tax tables for 2018 reflect these changes. According to H&R Block\u2019s analysis of the Tax Cuts and Jobs Act<\/a> (TCJA), the new tax brackets mean that most taxpayers will pay less tax.<\/p>\n

Under the new law,<\/strong> Jessica\u2019s taxable income of $29,350 places her in the 12% tax bracket. She will pay:<\/p>\n