Tax Rates and Brackets
Tax Rates and Brackets
On December 22, 2017 President Donald Trump signed into law the Tax Cuts and Jobs Act.
This legislation created a massive overhaul of our current tax code, including changes to the rate at which individuals figure their tax. The overall number of individual tax brackets remained the same at seven; however, the income thresholds for each bracket changed, and tax rates were adjusted at most levels of income. Outlined below is a comparison of the old tax brackets to the new.
As you can see, marginal income tax rates are generally lower under the new law. Note, however, that taxpayers’ taxable income to which the rates are applied may be either higher or lower under the new law, due to other changes in the tax bill, such as those to deductions and exemptions.