The TCJA tax brackets represent one of the largest shifts in federal income tax policy in decades. Signed into law in December 2017, the Tax Cuts and Jobs Act reduced individual tax rates across nearly every income level, restructured bracket thresholds, and eliminated the personal exemption while nearly doubling the standard deduction. These changes took effect for the 2018 tax year and are currently set to remain in place through 2025.
Understanding how the TCJA tax rates work matters for anyone filing federal income taxes, whether you are a single filer, a married couple, or a head of household. Below is a detailed breakdown of every major change the law made to individual tax brackets, along with the actual rate tables for each filing status. The official 2018 rate schedules appear in IRS Revenue Procedure 2018-18, which revised the earlier inflation adjustments to reflect the new law.
How the TCJA Changed the Seven Federal Income Tax Brackets
The Tax Cuts and Jobs Act kept the existing seven-bracket structure but lowered the rates for five of the seven brackets. The 10% and 35% brackets stayed the same, while the remaining brackets dropped by two to four percentage points. Here is how the rates compare:
- The 15% bracket dropped to 12%
- The 25% bracket dropped to 22%
- The 28% bracket dropped to 24%
- The 33% bracket dropped to 32%
- The 39.6% top rate dropped to 37%
These rate reductions apply to taxable income earned from January 1, 2018, through December 31, 2025. The law also adjusted the income thresholds for each bracket, which means some filers shifted into different rate categories even before accounting for the rate cuts themselves.
For example, in 2017 the pre-TCJA top rate of 39.6% applied to taxable income of $418,400 and above for single filers and $470,700 and above for married couples filing jointly. Under the TCJA, the reduced 37% top rate does not begin until $500,000 for single filers and $600,000 for joint filers, a meaningful threshold increase that kept more high-income taxpayers in lower brackets.
TCJA Tax Brackets by Filing Status
The rate tables below show how much federal income tax each filing status owes under the Tax Cuts and Jobs Act, using the 2018 figures established when the law first took effect. The thresholds are indexed for inflation in later years, but the rates themselves stay fixed through 2025.
Single Filers
Single individuals pay federal income tax according to the following brackets:
| Taxable income | Tax owed |
| — | — |
| Up to $9,525 | 10% of taxable income |
| $9,526 – $38,700 | $952.50 + 12% of the amount over $9,525 |
| $38,701 – $82,500 | $4,453.50 + 22% of the amount over $38,700 |
| $82,501 – $157,500 | $14,089.50 + 24% of the amount over $82,500 |
| $157,501 – $200,000 | $32,089.50 + 32% of the amount over $157,500 |
| $200,001 – $500,000 | $45,689.50 + 35% of the amount over $200,000 |
| Over $500,000 | $150,689.50 + 37% of the amount over $500,000 |
The 12% rate replaced the former 15% bracket, lowering the marginal rate for single filers in this range by three percentage points. Combined with the higher standard deduction, most single filers at moderate incomes saw a noticeable reduction in their effective tax rate.
Married Couples Filing Jointly
Married taxpayers filing joint returns use wider income ranges that generally double the single-filer thresholds at the lower brackets:
| Taxable income | Tax owed |
| — | — |
| Up to $19,050 | 10% of taxable income |
| $19,051 – $77,400 | $1,905 + 12% of the amount over $19,050 |
| $77,401 – $165,000 | $8,907 + 22% of the amount over $77,400 |
| $165,001 – $315,000 | $28,179 + 24% of the amount over $165,000 |
| $315,001 – $400,000 | $64,179 + 32% of the amount over $315,000 |
| $400,001 – $600,000 | $91,379 + 35% of the amount over $400,000 |
| Over $600,000 | $161,379 + 37% of the amount over $600,000 |
Joint filers benefit from the widest bracket ranges under the TCJA. A married couple with $165,000 in taxable income, for instance, stays entirely within the 22% bracket rather than being pushed into the former 28% bracket, a direct savings from both the rate reduction and the expanded threshold.
Heads of Household
Head-of-household filers, typically single parents or individuals who pay more than half the cost of maintaining a home for a qualifying dependent, have their own bracket schedule:
| Taxable income | Tax owed |
| — | — |
| Up to $13,600 | 10% of taxable income |
| $13,601 – $51,800 | $1,360 + 12% of the amount over $13,600 |
| $51,801 – $82,500 | $5,944 + 22% of the amount over $51,800 |
| $82,501 – $157,500 | $12,698 + 24% of the amount over $82,500 |
| $157,501 – $200,000 | $30,698 + 32% of the amount over $157,500 |
| $200,001 – $500,000 | $44,298 + 35% of the amount over $200,000 |
| Over $500,000 | $149,298 + 37% of the amount over $500,000 |
Head-of-household status offers wider brackets than single filing but narrower brackets than married filing jointly. The TCJA preserved this intermediate structure while applying the same rate reductions across the board.
Married Filing Separately
Married individuals who choose to file separately use the narrowest bracket thresholds:
| Taxable income | Tax owed |
| — | — |
| Up to $9,525 | 10% of taxable income |
| $9,526 – $38,700 | $952.50 + 12% of the amount over $9,525 |
| $38,701 – $82,500 | $4,453.50 + 22% of the amount over $38,700 |
| $82,501 – $157,500 | $14,089.50 + 24% of the amount over $82,500 |
| $157,501 – $200,000 | $32,089.50 + 32% of the amount over $157,500 |
| $200,001 – $300,000 | $45,689.50 + 35% of the amount over $200,000 |
| Over $300,000 | $80,689.50 + 37% of the amount over $300,000 |
Filing separately generally results in higher taxes than filing jointly, but some couples choose this status for liability protection or to separate their tax obligations. The TCJA rate cuts still apply, though the narrower brackets mean the 37% top rate starts at $300,001 rather than $600,001.
Beyond the Brackets: Standard Deduction, Personal Exemption, and Other TCJA Changes
The TCJA tax rates tell only part of the story. Several other changes directly affect how much of your income is subject to tax in the first place.
Standard deduction nearly doubled. The 2018 standard deduction rose to $12,000 for single filers and $24,000 for married couples filing jointly, up from $6,350 and $12,700 respectively. This increase meant that fewer taxpayers needed to itemize deductions, which simplified the filing process for millions.
Personal exemption eliminated. Before the TCJA, each taxpayer could claim a personal exemption of $4,050 per person, reducing taxable income further. The Tax Cuts and Jobs Act set the personal exemption to zero. For single filers or couples without children, the higher standard deduction more than offset this loss. For larger families, the trade-off was less clear, though an expanded Child Tax Credit, increased from $1,000 to $2,000 per qualifying child, helped offset the impact.
Itemized deductions capped. The TCJA limited the state and local tax (SALT) deduction to $10,000, which significantly affected taxpayers in high-tax states like New York, New Jersey, and California. Mortgage interest deduction limits also tightened, applying to loan amounts up to $750,000 rather than $1,000,000. The IRS summarizes these provisions in its Tax Reform resources for individuals.
These changes interact with the rate structure in ways that vary by individual circumstances. A lower tax rate on paper does not always translate to a lower tax bill if your taxable income increased because of lost deductions or exemptions. A coordinated approach through ongoing tax advisory services helps you measure the combined effect rather than reading the rate table in isolation.
When These Tax Rates Expire and What Happens Next
The individual tax provisions of the TCJA are scheduled to sunset after December 31, 2025. Unless Congress acts to extend or make these rates permanent, the pre-2018 bracket structure and rates will return for the 2026 tax year and beyond.
That means the top rate would revert to 39.6%, the 12% bracket would jump back to 15%, and the personal exemption would be restored. The standard deduction would also fall back toward its pre-TCJA levels, adjusted for inflation. Legislative efforts to extend, modify, or replace these provisions are ongoing, but taxpayers should prepare for the possibility of higher rates in 2026.
For anyone planning ahead, the key point is that the lower TCJA rates currently offer savings against what federal law will default to after 2025. Strategies such as accelerating income into the current tax years, maximizing Roth conversions, or adjusting withholding may be worth discussing with a tax advisor. Business owners weighing entity structure or timing decisions can review the full range of accounting services available to model these scenarios before the sunset arrives.
Frequently Asked Questions
How did the TCJA change individual tax rates?
The Tax Cuts and Jobs Act reduced five of the seven federal income tax bracket rates. The 15% rate dropped to 12%, 25% to 22%, 28% to 24%, 33% to 32%, and 39.6% to 37%. The 10% and 35% rates remained unchanged. These reductions apply to tax years 2018 through 2025.
What are the TCJA tax brackets for married couples filing jointly?
Married couples filing jointly under the TCJA pay rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The 37% top rate begins at $600,000 of taxable income, up from the 2017 pre-TCJA threshold of $470,700 for the former 39.6% rate.
When do the TCJA individual tax rates expire?
The TCJA’s individual tax provisions are set to expire after December 31, 2025. Unless Congress passes legislation to extend or make them permanent, the pre-2018 tax rates and bracket structure will return for the 2026 tax year.
Did the TCJA eliminate the personal exemption?
Yes. The Tax Cuts and Jobs Act set the personal exemption to $0 for tax years 2018 through 2025. To offset this, the law nearly doubled the standard deduction and increased the Child Tax Credit from $1,000 to $2,000 per qualifying child.
How does the TCJA standard deduction compare to pre-2017 levels?
The TCJA raised the standard deduction from $6,350 to $12,000 for single filers and from $12,700 to $24,000 for married couples filing jointly in 2018. This near-doubling reduced the number of taxpayers who benefit from itemizing deductions.
What income level triggers the top TCJA tax rate of 37%?
The 37% top rate under the TCJA starts at $500,001 for single filers, $600,001 for married filing jointly, $500,001 for heads of household, and $300,001 for married filing separately. These thresholds are higher than the pre-TCJA cutoffs for the former 39.6% top rate.
