This guide outlines the key IRS updates for 2018, including new tax brackets, increased standard deductions, and exemption changes. It provides clear details for individual taxpayers, helping ensure accurate filing and tax planning. Understanding these updates is crucial for compliance and optimizing tax returns for the 2018 tax year.

Essential 2018 Income Tax Guidelines for Taxpayers

In March 2018, the IRS announced revised tax brackets, higher standard deductions, and updates on credits and phaseouts. Congressional law changes brought adjustments to income tiers, deductions, and exemptions—critical information for accurate tax planning and filing your 2018 return.

2018 Tax Bracket Summary

Here are the income ranges and corresponding tax rates based on taxable income.

For Single Filers (excluding married and head of household)

Up to $9,525: 10%

$9,525–$38,700: $952.50 plus 12% of the amount over $9,525

$38,700–$82,500: $4,453.50 plus 22% on excess over $38,700

$82,500–$157,500: $14,089.50 plus 24% on excess over $82,500

$157,500–$200,000: $32,089 plus 35% on excess over $157,500

$200,000–$500,000: $45,689.50 plus 35% on excess over $200,000

Over $500,000: $150,689.50 plus 37% on any amount exceeding $500,000

Married Filers Jointly and Spouses Surviving

Up to $19,050: 10%

$19,050–$77,400: $1,905 plus 12% over $19,050

$77,400–$165,000: $8,907 plus 22% over $77,400

$165,000–$315,000: $28,179 plus 24% over $165,000

$315,000–$400,000: $64,179 plus 32% over $315,000

$400,000–$600,000: $91,379 plus 35% over $400,000

Over $600,000: $161,379 plus 37% over $600,000

Head of Household

Up to $13,600: 10%

$13,600–$51,800: $1,360 plus 12% over $13,600

$51,800–$82,500: $5,944 plus 22% over $51,800

$82,500–$157,500: $12,698 plus 24% over $82,500

$157,500–$200,000: $30,698 plus 32% over $157,500

$200,000–$500,000: $44,298 plus 35% over $200,000

Over $500,000: $149,298 plus 37% on any amount above $500,000

Married Filing Separately

Up to $9,525: 10%

$9,525–$38,700: $952.50 plus 12% over $9,525

$38,700–$82,500: $4,453.50 plus 22% over $38,700

$82,500–$157,500: $14,089.50 plus 24% over $82,500

$157,500–$200,000: $32,089.50 plus 32% over $157,500

$200,000–$300,000: $45,689.50 plus 35% over $200,000

Over $300,000: $80,689.50 plus 37% on any amount exceeding $300,000

2018 Standard Deduction and Personal Exemptions

The 2018 tax revisions eliminated the personal exemption of $4,150. The standard deduction was increased to $24,000 for joint filers and surviving spouses, $18,000 for head of household, and $12,000 for singles and married filing separately individuals. These changes are vital for precise tax computation and planning.