Tax Rate

The New 2019 Federal Income Tax Brackets & Rates

Why are tax brackets changing in 2019?

It all has to do with a provision in the tax code known as indexing. Each year, the IRS adjusts tax brackets to account for inflation. 

The purpose of indexing is to eliminate what’s known as bracket creep. That’s where you get pushed into a higher tax bracket due to pay raises that do little more than match the rate of inflation. Indexing allows you to stay in the same tax bracket, despite a slightly higher income level.

Until 2017, indexing was based on changes in the Consumer Price Index (CPI). But beginning in the 2019 tax year, indexing will be based on the Chained Consumer Price Index (C-CPI). The change is part of the Tax Cuts and Jobs Act of 2017.

Federal income tax brackets and rates for 2019 are shown below. Indexing has increased the income brackets by roughly 2% across the board.

2019 Tax Brackets


2019 Tax Brackets (IRS Federal Income Tax Rates)

Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
10% Up to $9,700 Up to $19,400 Up to $9,700 Up to $13,850
12% $9,701-$39,475 $19,401-$78,950 $9,701-$39,475 $13,851 -$52,850
22% $39,476-$84,200 $78,951-$168,400 $39,476-$84,200 $52,851-$84,200
24% $84,201-$160,725 $168,401-$321,450 $84,201-$160,725 $84,201-$160,700
32% $160,726-$204,100 $321,451-$408,200 $160,726-$204,100 $160,701-$204,100
35% $204,101-$510,300 $408,201-$612,350 $204,101-$306,175 $204,101-$510,300
37% Over $510,301 Over $612,351 Over $306,176 Over $510,301


2019 Standard Deductions & Exemptions

Filing Status Deduction Amount
Single $12,200
Married Filing Separately $12,200
Married Filing Jointly $24,400
Head of Household $18,350
Personal Exemption $0


Earned Income Credit Table for 2019 Income Limits & Maximum Amounts

Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
Single, Head of Household, Widow(er) Threshold Phaseout Amount: $8,650 $19,030 $19,030 $19,030
Single, Head of Household, Widow(er) Completed Phaseout Amount: $15,570 $41,094 $46,703 $50,162
Married Filing Jointly Threshold Phaseout Amount: $14,450 $24,820 $24,820 $24,820
Married Filing Jointly Completed Phaseout Amount: $21,370 $46,884 $52,493 $55,592

The EITC maximum credit amounts for 2019 are:

  • $6,557 with three or more qualifying children
  • $5,828 with two qualifying children
  • $3,526 with one qualifying child
  • $529 with no qualifying children


2018 Tax Brackets

Here are the 2018 tax brackets. They are the tax brackets for your income earned in 2018 (which will be filed on your 2018 tax return due on the tax deadline in 2019).

Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
10% Up to $9,525 Up to $19,050 Up to $9,525 Up to $13,600
12% $9,526-$38,700 $19,051-$77,400 $9,526-$38,700 $13,601-$51,800
22% $38,701-$82,500 $77,401-$165,000 $38,701-$82,500 $51,801-$82,500
24% $82,501-$157,500 $165,001-$315,000 $82,501-$157,500 $82,501-$157,500
32% $157,501-$200,000 $315,001-$400,000 $157,501-$200,000 $157,501-$200,000
35% $200,001-$500,000 $400,001-$600,000 $200,001-$300,000 $200,001-$500,000
37% Over $500,000 Over $600,000 Over $300,000 Over $500,000


Earned Income Credit Table for 2018 Income Limits & Maximum Amounts

Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
Single, Head of Household, Widow(er) Threshold Phaseout Amount: $8,490 $18,660 $18,660 $18,660
Single, Head of Household, Widow(er) Completed Phaseout Amount: $15,270 $40,320 $45,802 $49,194
Married Filing Jointly Threshold Phaseout Amount: $14,170 $24,350 $24,350 $24,350
Married Filing Jointly Completed Phaseout Amount: $20,950 $46,010 $51,492 $54,884

The EITC maximum credit amounts for 2018 are:

  • $6,431 with three or more qualifying children
  • $5,716 with two qualifying children
  • $3,461 with one qualifying child
  • $519 with no qualifying children


2017 Tax Brackets

 

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