2019 and 2020 Federal Tax Brackets: What Is My Tax Bracket?


The IRS recently announced the 2020 tax brackets. Given many people are interested in the changes, we wanted to include the latest tax bracket updates as quickly as possible.If you’re looking for past year’s tax brackets, check out the tables below. With the tax reform at the end of 2017, there are a number of changes to the 2018 tax law. These include new tax 2018 federal tax brackets, standard deduction changes, and elimination of the personal exemption.To better compare the 2017 tax brackets to the new 2018 tax brackets, they are shown side by side below. In 2019 and 2020, while the tax brackets didn’t changeCheck this out if you’re looking for the specific Capital Gains Tax Brackets and Rates.

For 2020, the Federal tax brackets are very similar to what you saw in 2019. There are some slight changes, but nothing major like we saw from 2017 to 2018 with the Trump Tax Cuts and Jobs Act. The bottom line is that all the tax bracket upper limits went up a little bit.The table below shows the tax bracket/rate for each income level:

The standard deduction has also increased slightly for 2020, which you can see in the table below.Personal exemptions, which were eliminated from 2018 through 2025 as part of the Tax Cuts and Jobs Act, will remain at zero.

For 2019, the Federal tax brackets are very similar to what you saw in 2018. There are some slight changes, but nothing major like we saw from 2017 to 2018 with the Trump Tax Cuts and Jobs Act. The bottom line is that all the tax bracket upper limits went up a little bit.The table below shows the tax bracket/rate for each income level:

The standard deduction has also increased for 2019, which you can see in the table below.Personal exemptions, which were eliminated from 2018 through 2025 as part of the Tax Cuts and Jobs Act, will remain at zero.

For 2018, there is a still a 10% bracket and only a small change to the cutoff amounts for that bracket. The other brackets have all changed and now include the following: 12%, 22%, 24%, 32%, 35%, and 37%.The table below shows the tax bracket/rate for each income level:

See how this compares to the 2017 tax brackets:

Overall, percentages are lower than in 2017 and the ranges for each percentage are also lower, producing tax savings for each group. For example, a married couple filing jointly and making $160,000 would have been in the 28% tax bracket for 2017. For 2018, they move down to the 22% bracket:They dropped four percentage points and have a fairly significant amount of savings in taxes.To understand which 2018 tax bracket you are in, here are a few examples:

The standard deduction has also changed for 2018.

From the table, you can see there are large increases from 2017 to 2018. These come at the expense of the personal exemption, which has been repealed.

If you’d like to calculate your withholdings for 2018, you can use the IRS withholding calculator found at https://apps.irs.gov/app/withholdingcalculator/.The IRS does anticipate there will be further changes to withholdings for 2019.

Written by Investors Wallets

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