The recent tax laws have not only changed the income tax rates, but have also expanded the income that falls within each bracket. Here’s an example of the old rates vs. the new rates for married individuals filing a joint return:
Old Brackets:
Rate Taxable Income
10% $0 – $19,050
15% $19,051 – $77,400
25% $77,401 – $156,150
28% $156,151 – $237,950
33% $237,951 – $424,950
35% $424,951 – $480,050
39.6% $480,051 +
New Brackets:
Rate Taxable Income
10% $0 – $19,050
12% $19,051 – $77,400
22% $77,401 – $165,000
24% $165,001 – $315,000
32% $315,001 – $400,000
35% $400,001 – $600,000
37% $600,001 +
There are other numerous changes that will impact your overall tax liability, including but not limited to the suspension of personal exemptions, expansion of the standard deduction, itemized deduction limitations (especially for state and local taxes), and lastly, the change to corporate tax rates.