Tax Rates

2018 Tax Rates

• Single Taxpayers

  The Standard Deduction is $12,000.

  $0 to $9,525	10%
  $9,526 to $38,700	12%
  $38,701 to $82,500	22%
  $82,501 – $157,500	24%
  $157,501 to $200,000	32%
  $200,001 to $500,000	35%
  $500,001 or more	37%

• Married Jointly & Surviving Spouses

  The standard deduction is $24,000.

  $0 to $19,050	10%
  $19,051 to $77,400	12%
  $77,401 to $165,000	22%
  $165,001 to $315,000	24%
  $315,001 to $400,000	32%
  $400,001 to $600,000	35%
  $600,001 or more	37%

• Married Filing Separately

  The standard deduction is $12,000.

  $0 to $9,525	10%
  $9,526 to $38,700	12%
  $38,701 to $82,500	22%
  $82,501 to $157,500	24%
  $157,501 to $200,000	32%
  $200,001 to $300,000	35%
  $300,001 or more	37%

• Head of Household

  The standard deduction is $18,000.

  $0 to $13,600	10%
  $13,601 to $51,800	12%
  $51,801 to $82,500	22%
  $82,501 – $157,500	24%
  $157,501 to $200,000	32%
  $200,001 to $500,000	35%
  $500,001 or more	37%

• Estates & Trusts

  $0 to $2,550	15%
  $2,550 to $5,950	25%
  $5,950 to $9,050	28%
  $9,050 to $12,400	33%
  Over $12,400	39.6%

Special Rates, Credits and Deductions

• Social Security

  Social Security

  Social Security Tax Rate: Employers	6.2%
  Social Security Tax Rate: Employees	6.2%
  Social Security Tax Rate: Self-Employed	12.4%
  Maximum Taxable Earnings	$118,500
  Medicare Base Salary	Unlimited
  Medicare Tax Rate	1.45%
  Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)	0.9%
  Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)	3.8%

• Education

  Education

  American Opportunity Credit (Hope)	$2,500
  Lifetime Learning Credit	$2,000
  Student Loan Interest Deduction	$2,500
  Coverdell Education Savings Contribution	$2,000

• Miscellaneous

  Miscellaneous

  Business expensing limit: Cap on equipment purchases	$2,500,000
  Business expensing limit: New and Used Equipment and Software	$1,00,000
  Prior-year safe harbor for estimated taxes of higher-income	110% of your 2018 tax liability
  Standard mileage rate for business driving	54.5 cents
  Standard mileage rate for medical/moving driving	18 cents
  Standard mileage rate for charitable driving	14 cents
  Child Tax Credit	$1,000
  Unearned income maximum for children under 19 · and· children aged 19 through 23 who are full-time students and whose earned income does not exceed half of the annual expenses for their support before kiddie tax applies	$2,100
  Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket	0%
  Maximum capital gains tax rate for taxpayers above the 15% bracket but below the 39.6% bracket	15%
  Maximum capital gains tax rate for taxpayers in the 39.6% bracket	20%
  Capital gains tax rate for unrecaptured Sec. 1250 gains	25%
  Capital gains tax rate on collectibles	0%, 15%, 20%, and 28%
  Maximum contribution for Traditional/Roth IRA	$5,500 if under age 50 $6,500 if 50 or older
  Maximum employee contribution to SIMPLE IRA	$12,500 if under age 50 $15,500 if 50 or older
  Maximum Contribution to SEP IRA	25% of eligible compensation up to $55,000
  401(k) maximum employee contribution limit	$18,500 if under age 50 $24,500 if 50 or older
  Estate tax exemption	$5,600,000
  Annual Exclusion for Gifts	$15,000