Most individual tax rates go down under the TCJA

The Tax Cuts and Jobs Act generally reduces individual tax rates for 2018 through 2025. It maintains seven tax brackets but reduces the rates for all brackets except 10% and 35%, which remain the same. It also makes some adjustments to the income ranges each bracket covers. For example, the 2017 top rate of 39.6% kicks in at $418,401 of taxable income for single filers and $470,701 for joint filers, but the reduced 2018 top rate of 37% takes effect at $500,001 and $600,001, respectively. Contact us for help assessing what your tax rate likely will be for 2018.