Tax Brackets 2018 Calculator Usa
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Reviewed by Calculator Editorial Team
Use this tax brackets calculator to estimate your 2018 federal income tax liability based on your filing status and taxable income. The calculator uses the official 2018 tax brackets and rates from the IRS to provide an accurate estimate.
How the 2018 Tax Brackets Calculator Works
The 2018 tax brackets calculator uses the official federal income tax rates and brackets established by the IRS for tax year 2018. The calculation follows these steps:
- Subtract the standard deduction from your total income to determine taxable income
- Apply the progressive tax rates to each bracket of your taxable income
- Sum the tax amounts from each bracket to get your total federal income tax
Formula Used
Taxable Income = Total Income - Standard Deduction
Federal Income Tax = Sum of (Taxable Income in Bracket × Bracket Rate)
The calculator uses the standard deduction amounts for each filing status as published by the IRS. For married filing jointly, the standard deduction was $12,700 in 2018.
Standard Deduction in 2018
The standard deduction in 2018 provided a fixed amount that could be subtracted from your taxable income, reducing the amount of income subject to tax. The standard deduction amounts varied by filing status:
| Filing Status | Standard Deduction |
|---|---|
| Single | $6,350 |
| Married Filing Jointly | $12,700 |
| Married Filing Separately | $6,350 |
| Head of Household | $9,350 |
Using the standard deduction is generally more beneficial than itemizing deductions unless you have significant itemized deductions like mortgage interest, state taxes, or charitable contributions.
2018 Federal Income Tax Rates
The 2018 federal income tax rates were progressive, meaning higher income levels were taxed at higher rates. The tax brackets and rates were as follows:
| Tax Bracket | Tax Rate |
|---|---|
| 0% to $9,525 | 10% |
| $9,526 to $38,700 | 12% |
| $38,701 to $82,500 | 22% |
| $82,501 to $157,500 | 24% |
| $157,501 to $200,000 | 32% |
| $200,001 to $500,000 | 35% |
| $500,001+ | 37% |
These rates applied to all taxpayers regardless of filing status. The calculator automatically applies the correct rate to each portion of your taxable income.
Example Tax Calculation
Let's calculate the federal income tax for a married couple filing jointly with a total income of $75,000 in 2018.
- Subtract the standard deduction: $75,000 - $12,700 = $62,300 taxable income
- Calculate tax for each bracket:
- $9,525 × 10% = $952.50
- ($38,700 - $9,525) × 12% = $3,211.80
- ($62,300 - $38,700) × 22% = $5,281.80
- Total federal income tax: $952.50 + $3,211.80 + $5,281.80 = $9,446.10
Note
This example assumes no additional deductions or credits were claimed. Actual tax liability may vary based on individual circumstances.
Frequently Asked Questions
What is the difference between taxable income and gross income?
Taxable income is your gross income minus any deductions that reduce the amount subject to tax. For most taxpayers, this includes the standard deduction. Gross income includes all income received during the year.
How do I know which filing status to use?
Your filing status is determined by your marital status and whether you have dependents. Common options include single, married filing jointly, married filing separately, and head of household. Consult IRS publication 501 for details.
Are state taxes included in this calculator?
No, this calculator only calculates federal income tax. State taxes vary by location and are calculated separately. You may need to use additional tax calculators for state income tax.
What about tax credits and deductions?
This calculator provides an estimate based on standard deductions. Actual tax liability may be higher or lower depending on whether you claim itemized deductions or tax credits like the Earned Income Tax Credit or Child Tax Credit.