United States tax law / Tax year 2018
USA Federal Income Tax Rates for 2018: Individuals, Capital Gains and Corporations
A reference guide to the federal income tax rates applicable to tax year 2018 in the United States, including the individual filing-status brackets, preferential long-term capital gains rates, and the federal corporate income tax rate.
2018 Federal Individual Income Tax Brackets
Under Internal Revenue Code (IRC) Section 1, as amended by the Tax Cuts and Jobs Act (Public Law 115-97), individuals were subject to seven marginal income tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. A marginal rate applies only to the portion of taxable income within its bracket, not to all income.
The following thresholds are based on IRS Revenue Procedure 2018-18, Section 3.01.
Single
| 2018 taxable income | Marginal rate |
|---|---|
| $0 to $9,525 | 10% |
| Over $9,525 to $38,700 | 12% |
| Over $38,700 to $82,500 | 22% |
| Over $82,500 to $157,500 | 24% |
| Over $157,500 to $200,000 | 32% |
| Over $200,000 to $500,000 | 35% |
| Over $500,000 | 37% |
Married filing jointly and qualifying surviving spouse
| 2018 taxable income | Marginal rate |
|---|---|
| $0 to $19,050 | 10% |
| Over $19,050 to $77,400 | 12% |
| Over $77,400 to $165,000 | 22% |
| Over $165,000 to $315,000 | 24% |
| Over $315,000 to $400,000 | 32% |
| Over $400,000 to $600,000 | 35% |
| Over $600,000 | 37% |
Married filing separately
| 2018 taxable income | Marginal rate |
|---|---|
| $0 to $9,525 | 10% |
| Over $9,525 to $38,700 | 12% |
| Over $38,700 to $82,500 | 22% |
| Over $82,500 to $157,500 | 24% |
| Over $157,500 to $200,000 | 32% |
| Over $200,000 to $300,000 | 35% |
| Over $300,000 | 37% |
Head of household
| 2018 taxable income | Marginal rate |
|---|---|
| $0 to $13,600 | 10% |
| Over $13,600 to $51,800 | 12% |
| Over $51,800 to $82,500 | 22% |
| Over $82,500 to $157,500 | 24% |
| Over $157,500 to $200,000 | 32% |
| Over $200,000 to $500,000 | 35% |
| Over $500,000 | 37% |
For 2018, the basic standard deduction was $12,000 for single and married-filing-separately taxpayers, $24,000 for joint filers, and $18,000 for heads of household, before any applicable additional deduction. The personal exemption amount was zero. Eligibility for a particular filing status and deductions depends on the taxpayer's circumstances.
2018 Long-Term Capital Gains Tax Rates
IRC Section 1(h), together with Section 1(j)(5), generally provided preferential 0%, 15% and 20% federal tax rates for eligible net long-term capital gains and qualified dividends. Long-term generally means an asset was held for more than one year; short-term gains generally face ordinary income tax rates. The thresholds below refer to total taxable income, not solely the amount of gain.
| Filing status | 0% through | 15% through | 20% above |
|---|---|---|---|
| Single | $38,600 | $425,800 | $425,800 |
| Married filing jointly / qualifying surviving spouse | $77,200 | $479,000 | $479,000 |
| Married filing separately | $38,600 | $239,500 | $239,500 |
| Head of household | $51,700 | $452,400 | $452,400 |
These are general rates. Certain gains, including unrecaptured Section 1250 gain and collectibles gain, may be subject to special maximum rates. The separate 3.8% net investment income tax under IRC Section 1411 may also apply to qualifying higher-income taxpayers.
Official legislative explanation: Joint Committee on Taxation, General Explanation of Public Law 115-97.
2018 USA Federal Corporate Income Tax Rate
For tax years beginning after December 31, 2017, the Tax Cuts and Jobs Act amended IRC Section 11(b) to establish a flat 21% federal income tax rate on taxable income of corporations subject to that provision, replacing the prior graduated corporate rate schedule.
| Corporate taxable income | 2018 federal rate |
|---|---|
| Taxable income of a corporation subject to IRC Section 11 | 21% |
The 21% rate is not necessarily a corporation's total effective tax burden. State corporate taxes, special regimes, deductions, credits and international tax provisions may affect the final liability. Pass-through businesses generally follow different rules.
Federal Tax Treatment of Residents and Nonresidents
US citizens and resident aliens generally are subject to federal income tax on worldwide income, subject to applicable relief and exclusions. Nonresident aliens are generally taxed under different rules, including IRC Sections 871 and 872 for certain US-source income, and may be eligible for tax treaty benefits. The individual rate tables above should not be assumed to apply to all categories of nonresident income.
For detailed guidance, consult the IRS nonresident alien tax guidance and the relevant US income tax treaty.
Official IRS Sources and Legal Provisions
- IRS Revenue Procedure 2018-18 — final 2018 inflation-adjusted individual tax brackets and standard deductions.
- 2018 Internal Revenue Code, Chapter 1, Subchapter A — individual income tax rates and capital gains provisions.
- Public Law 115-97 — Tax Cuts and Jobs Act amendments.
- IRS individual taxpayer resources — current guidance and filing information.
Editorial note: This page documents the 2018 federal tax regime. Consult current IRS publications and the law applicable to the tax year being filed for later-year obligations.