Understanding the Tax Cuts and Jobs Act (TCJA), and How It Can Affect Your Tax Return

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Here at Brennan and Company CPA, PC, we’re not just the trusted financial consultants in Philadelphia. We’re also the reliable source of information for all things tax related. In fact, it’s precisely why we’re providing these tax tables, which we hope you will find useful.

The Tax Cuts and Jobs Act (TCJA) has made significant changes to the current tax rates used for filing income taxes. Brennan and Company CPA, PC is providing the following comparison of tax rates for 2018 taxes to be filed in 2019, and 2017 tax rates used for returns filed in 2018 (and after the TCJA takes effect).

For many taxpayers, these tables are indicative of the savings they will receive in year one of filing under the TCJA. CPAs should be aware of the new tax tables being utilized for filing this year’s tax returns.

The following tax rates are being used:

Single Taxpayers
2018 Tax Rates 2017 Tax Rates
10% 0 to $9,525 10% 0 to $9,325
12% $9,525 to $38,700 15% $9,325 to $37,950
22% $38,700 to $82,500 25% $37,950 to $91,900
24% $82,500 to $157,500 28% $91,900 to $191,650
32% $157,500 to $200,000 33% $191,650 to $416,700
35% $200,000 to $500,000 35% $416,700 to $418,400
37% Over $500,000 39.60% Over $418,400

 

Married Filing Jointly & Surviving Spouses
2018 Tax Rates 2017 Tax Rates
10% 0 to $19,050 10% 0 to $18,650
12% $19,050 to $77,400 15% $18,650 to $75,900
22% $77,400 to $165,000 25% $75,900 to $153,100
24% $165,000 to $315,000 28% $153,100 to $233,350
32% $315,000 to $400,000 33% $233,350 to $416,700
35% $400,000 to $600,000 35% $416,700 to $470,700
37% Over $600,000 39.60% Over $470,700

 

Married Filing Separately
2018 Tax Rates 2017 Tax Rates
10% 0 to $9,525 10% 0 to $9,325
12% $9,525 to $38,700 15% $9,325 to $37,950
22% $38,700 to $82,500 25% $37,950 to $76,550
24% $82,500 to $157,500 28% $76,550 to $116,675
32% $157,500 to $200,000 33% $116,675 to $208,350
35% $200,000 to $500,000 35% $208,350 to $235,350
37% Over $500,000 39.60% Over $235,350

 

Head of Household
2018 Tax Rates 2017 Tax Rates
10% 0 to $13,600 10% 0 to $13,350
12% $13,600 to $51,800 15% $13,350 to $50,800
22% $51,800 to $82,500 25% $50,800 to $131,200
24% $82,500 to $157,500 28% $131,200 to $212,500
32% $157,500 to $200,000 33% $212,500 to $416,700
35% $200,000 to $500,000 35% $416,700 to $444,500
37% Over $500,000 39.60% Over $444,500

For more information on tax preparation or our financial consulting services in Philadelphia, please call us at 215-951-5585. For any additional information, please visit the Internal Revenue Service website at www.irs.gov.