Volunteer Opportunities! Call a Fellow Rotarian or a Friend to Come Along
If you have an idea for a service project big or small bring it to the club and we will get it done. Contact Todd with ideas todd@proctorbank.com
Speakers are needed at Woodland Hills if you are interested please contact Harry 348-4278
Join the Concert committee, meet once per month, pick the bands, pick venue and have fun! First meeting is in March. contact Marisa 218-310-1767 or marisa.conleyl@membersccu.org
First, one of the most talked about changes in the 2018 tax reform bill was the update to income tax brackets and marginal tax rates.
So what are marginal tax rates? Those are the percentages of your income that you pay in taxes. What this means for you: Your income is not taxed at one rate but at several different rates, depending on how much you make.
How do you know your tax rates? Enter tax brackets. Tax brackets are income ranges. It’s that simple.
Each tax bracket corresponds to a tax rate. For example, if your income is $120,000, your tax rate isn’t a flat 24%. Instead, part of your income is taxed at 10%, part at 12%, part at 22%, and part at 24%. (You can check out the chart below to see all the tax brackets with their corresponding tax rate.)
Here’s the thing about income brackets and tax rates: It’s fairly common for tax brackets to change to account for inflation each year. But the marginal tax rates only change when a new tax law is passed—which doesn’t happen often. That’s why people were especially interested in this part of the tax reform bill.
Is this good or bad news for you? This year, it’s good news! Lower marginal tax rates means you can pocket more money from your paycheck!
To help you see those changes, take a look at the 2017 and 2018 marginal tax rate tables.
2017 Marginal Income Tax Rates and Brackets
2017 Marginal Tax Rates
Single 2017 Tax Bracket
Married Filing Jointly 2017 Tax Bracket
Head of Household 2017 Tax Bracket
Married Filing Separately 2017 Tax Bracket
10%
$0 - $9,325
$0 - $18,650
$0 - $13,350
$0 - $9,325
15%
$9,326 - $37,950
$18,651 - $75,900
$13,351 - $50,800
$9,326 - $37,950
25%
$37,951 - $91,900
$75,901 - $153,100
$50,801 - $131,200
$37,951 - $76,550
28%
$91,901 - $191,650
$153,101 - $233,350
$131,201 - $212,500
$76,551 - $116,675
33%
$191,651 - $416,700
$233,351 - $416,700
$212,501 - $416,700
$116,676 - $208,350
35%
$416,701 - $418,400
$416,701 - $470,700
$416,701 - $444,550
$208,351 - $235,350
39.6%
Over $418,400
Over $470,700
Over $444,550
Over $235,350
Chart: 2017 Marginal Income Tax Rates and Brackets(1)
How do all these numbers stack up to the changes this year? Let’s compare.
2018 Marginal Income Tax Rates and Brackets
2018 Marginal Tax Rates
Single 2018 Tax Bracket
Married Filing Jointly 2018 Tax Bracket
Head of Household 2018 Tax Bracket
Married Filing Separately 2018 Tax Bracket
10%
$0 - $9,525
$0 - $19,050
$0 - $13,600
$0 - $9,525
12%
$9,525 - $38,700
$19,050 - $77,400
$13,600 - $51,800
$9,525 - $38,700
22%
$38,700 - $82,500
$77,400 - $165,000
$51,800 - $82,500
$38,700 - $82,500
24%
$82,500 - $157,500
$165,000 - $315,000
$82,500 - $157,500
$82,500 - $157,500
32%
$157,500 - $200,000
$315,000 - $400,000
$157,500 - $200,000
$157,500 - $200,000
35%
$200,000 - $500,000
$400,000 - $600,000
$200,000 - $500,000
$200,000 - $300,000
37%
Over $500,000
Over $600,000
Over $500,000
Over $300,000
Chart: 2018 Marginal Income Tax Rates and Brackets(2
