Federal Income Tax Rates for the 2018 Tax Year

The U.S. federal government taxes personal income using a graduated scale—the more you earn, the higher a percentage you will pay. Personal income tax rates start at 10 percent in 2018, and they gradually increase to 12 percent, then 22 percent, 24 percent, then 32 percent and 35 percent before reaching a top rate of 37 percent. This is somewhat significant change from the 2017 tax year. 

Each tax rate applies to a specific range of income, called a tax bracket.

Where each tax bracket begins and ends depends on your filing status. Tax rates can also vary depending on your type of income. Ordinary tax rates apply to most incomes, but a separate tax rate schedule applies to income from long-term capital gains.

New Tax Brackets in 2018 

The charts below are grouped by filing status. They show the tax rates on ordinary income in the first column, and the income levels that these rates apply to in the second column. Keep in mind that these dollar amounts represent taxable income—what's left after you've taken various deductions.

Taxable Income Brackets for Single Filers

Taxable Income Brackets for Heads of Household

Taxable Income Brackets for Married Taxpayers Filing Separately

Married Filing Jointly and Qualifying Widows/Widowers Brackets

Each Bracket Applies to a Portion of Your Income 

The next tax rate chart explains the mechanics of how to calculate your overall federal income tax. You won't pay 24 percent on all your income if you're single with taxable income of $100,000, but only on the portion over $82,500. It works out like this: 

2019 Ordinary Tax Rates for Single Filing Status

Let's say Edith is a single person who has taxable income of $100,000. This falls into the fourth tax bracket, which ranges from $82,401 to $157,500. Assuming that all Edith's income is subject to ordinary tax rates, her total federal income tax would calculate like this:

• $952.50 on her income up to $9,525, taxed at 10 percent 
• $3,501 on her income from $9,526 to $38,700, taxed at 12 percent
• $9,636 on her income from $38,701 to $82,500, taxed at 22 percent
• $4,200 on her income from $82,501 to $100,000, taxed at 24 percent 

Edith owes $18,289.50 in federal income taxes: $952.50 plus $3,501 plus $9636 plus $4,200.

Please consult the tax calculation worksheets in the 2018 Instructions for Form 1040 and the 2018 Tax Tables to compute your actual income tax. 

How to Use These Tax Rates

You can use these tax rates to figure out how much tax you'll pay on any extra income you earn. For example, if you already fall into the 24 percent tax bracket, your extra income from a second job or side gig will be taxed at that rate, or 24 percent, until your income reaches the next tax bracket of 32 percent.

You can also use these tax rates to figure out how much tax you'll save by increasing your deductions. A taxpayer in the 24 percent tax bracket will save 24 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.

Capital Gains Tax Rates

Income generated by long term capital gains is subject to its own tax rates. These rates were linked to ordinary income brackets through 2017, but the Tax Cuts and Jobs Act also changed that effective Jan. 1, 2018. Capital gains now have their very own tax brackets. They apply to your overall taxable income, not just what you've realized in capital gains. 

For single filers, these tax brackets are:

For married filers of joint returns, the capital gains tax brackets are:

Long term gains result from property you've held for more than a year. Short term capital gains result from assets you've owned for less than a year and they are considered ordinary income. They're taxed according to your ordinary income tax bracket, along with the rest of your taxable income. 

Other Tax Rates in Effect for 2018

In addition to the federal income taxes on ordinary income, there are other taxes that might apply to your personal income. For the most part, these rates have not changed. 

The Social Security tax rate is 12.4 percent on wages and self-employment income up to the annual Social Security wage base of $128,700 in 2018. This wage base can be adjusted annually to keep up with inflation. The maximum Social Security tax paid by employees is $7,979.40 in 2018, the maximum paid by employers is $7,979.40, and the maximum paid by self-employed individuals is $15,958.80 because they must pay both halves as a self-employment tax. 

The Medicare tax rate is 2.9 percent on wages and self-employment income.

The Additional Medicare tax rate is 0.9 percent on wages and self-employment income over the following thresholds:

• Married filing jointly: $250,000
• Single, head of household, or qualifying widow(er): $200,000
• Married filing separately: $125,000

Net investment income is taxed at a rate of 3.8 percent on the lower of net investment income or modified adjusted gross income over the following thresholds:

• Married filing jointly or qualifying Widow(er): $250,000
• Single or head of household: $200,000
• Married filing separately: $125,000

For more information on the new tax rates effective for 2018, please see our full article on the Tax Cuts and Jobs Act.