2019 Federal Income Tax Brackets and Standard Deduction (UPDATED)
6:02 AMThe numbers are in. Here’s what you need to know before you file taxes in 2020.
You might think it’s too early to consider 2019 tax brackets. After all, you won’t file your 2019 taxes for months yet. Not until 2020! But understanding your tax bracket can help you make all sorts of helpful financial decisions, especially if you’re right on the line between two tax brackets. In that case, finding a way to bring your taxable income down even a little can save you a big chunk of change. The numbers below are for this year, so they’re what you’ll see or use when you file your taxes in 2020. Here’s what you can expect from your 2019 deductions and tax rates.
2019 Standard Deduction
The standard deduction jumped by a lot for the 2018 tax year. But in 2019, it’ll only be adjusted for inflation. So the deductions are as follows:- Married Filing Jointly/Surviving Spouse: $24,400
- Heads of Households: $18,350
- Single/Married Filing Separately: $12,200
How Tax Brackets Work
A tax bracket is simply a set of income brackets that are to be taxed at a specified rate. A component of progressive income tax systems, tax brackets increase progressively with the increase in your income. The idea is to increase the tax burden on the higher-income groups while making it affordable for the lower-income groups to pay their taxes. Currently, there are seven federal income tax brackets in the U.S ranging from 10% to 37%. These rates apply to the taxable income, which is your gross income after allowable itemized deductions. Following are the seven tax rates that apply to seven different income brackets:| Income Bracket Number | Tax Rate |
|---|---|
| 1 | 10% |
| 2 | 12% |
| 3 | 22% |
| 4 | 24% |
| 5 | 32% |
| 6 | 35% |
| 7 | 37% |
| Tax Rate | Taxable Income (Single Filer) | Taxable Income (Married, Filing Jointly) | Taxable Income (Married, Filing Separately) |
Taxable Income (Head of Household) |
|---|---|---|---|---|
| 10% | $0 to $9,700 | $0 to $19,400 | $0 to $9,700 | $0 to $13,850 |
| 12% | $9,701 to $39,475 | $19,401 to $78,950 | $9,701 to $39,475 | $13,851 to $52,850 |
| 22% | $39,476 to $84,200 | $78,951 to $168,400 | $39,476 to $84,200 | $52,851 to $84,200 |
| 24% | $84,201 to $160,725 | $168,401 to $321,450 | $84,201 to $160,725 | $84,201 to $160,700 |
| 32% | $160,726 to $204,100 | $321,451 to $408,200 | $160,726 to $204,100 | $160,701 to $204,100 |
| 35% | $204,101 to $510,300 | $408,201 to $612,053 | $204,101 to $306,175 | $204,101 to $510,300 |
| 37% | $510,301 or more | $612,351 or more | $306,176 or more | $510,301 or more |
How to Use the Federal Income Tax Table
As mentioned earlier, the federal income tax bracket follows a progressive income tax system. What does this mean? It means that as your taxable income increases, the tax rate applicable to you will also increase. Depending on the filing status (single-filer or married, filing jointly), different tax rates are applied on income in different brackets or ranges. For example, a 37% tax rate is currently applied to single filers with a taxable income of over $500,000 and joint filers with a taxable income of $600,000. However, only the income in a specific tax bracket is subjected to the tax rate. This means that single filers earning over $500,000 will have to pay a 24% tax on only that amount of income which exceeds $500,000. So, if a person’s income is $525,000, then a 37% tax rate will be applied to only $25,000 of the income. There is a significant advantage for married taxpayers filing jointly as all tax brackets for them are almost twice the size of those for singles; the only exception being the highest tax bracket. This means that married couples filing jointly pay far less tax than they would have filed as a single person. In the next section is a list of tables breaking down the tax brackets for different filers.2019 Tax Rates
The tax rates for each year are published in table form. The top tax rate is 37%, and the lowest is 10%. These income brackets are also changed with inflation each year. Check out this article if you want to know more about how the marginal tax rate system works. For income you earn in 2019, your tax rate will be as follows, depending on which category you’re in.Table 1. Married Filing Jointly and Surviving Spouses
| 2019 Taxable Income Brackets | 2019 Tax Rates |
|---|---|
| Up to $19,400 | 10% of taxable income |
| Between $19,401 and $78,950 | $1,940 plus 12% of income over $19,400 |
| Between $78,951 and $168,400 | $9,086 plus 22% of income over $78,950 |
| Between $168,401 and $321,450 | $28,765 plus 24% of income over $168,400 |
| Between $321,451 and $408,200 | $65,497 plus 32% of income over $321,450 |
| Between $408,201 and $612,350 | $93,257 plus 35% of income over $408,200 |
| $612,351 and higher | $164,709.50 plus 37% of income over $612,350 |
Table 2. Heads of Households
| 2019 Taxable Income Brackets | 2019 Tax Rates |
|---|---|
| Up to $13,850 | 10% of taxable income |
| Between $13,851 and $52,850 | $1,385 plus 12% of income over $13,850 |
| Between $52,851 and $84,200 | $6,065 plus 22% of income over $52,850 |
| Over $84,201 and $160,700 | $12,962 plus 24% of income over $84,200 |
| Over $160,701 and $204,100 | $31,322 plus 32% of income over $160,700 |
| Over $204,101 and $510,300 | $45,210 plus 35% of income over $204,100 |
| $510,300 and higher | $152,380 plus 37% of income over $510,300 |
Table 3. Single Filers
| 2019 Taxable Income Brackets | 2019 Tax Rates |
|---|---|
| Up to $9,700 | 10% of taxable income |
| Between $9,701 and $39,475 | $970 plus 12% of income over $9,700 |
| Between $39,476 and $84,200 | $4,543 plus 22% of income over $39,475 |
| Between $84,201 and $160,725 | $14,382.50 plus 24% of income over $84,200 |
| Between $160,726 and $204,100 | $32,748.50 plus 32% of income over $160,725 |
| Between $204,100 and $510,300 | $46,628.50 plus 35% of income over $204,100 |
| $510,301 and higher | $153,798.50 plus 37% of income over $510,300 |
Table 4. Married Filing Separately
| 2019 Taxable Income Brackets | 2019 Tax Rates |
|---|---|
| Up to $9,700 | 10% of taxable income |
| Between $9,701 and $39,475 | $970 plus 12% of income over $9,700 |
| Between $39,476 and $84,200 | $4,543 plus 22% of income over $39,475 |
| Between $84,201 and $160,725 | $14,382.50 plus 24% of income over $84,200 |
| Between $160,726 and $204,100 | $32,748.50 plus 32% of income over $160,725 |
| Between $204,101 and $306,175 | $46,628.50 plus 35% of income over $204,100 |
| $306,176 and higher | $82,354.75 plus 37% of income over $306,175 |
Calculating Your 2019 Federal Income Tax
You can easily work out your federal income tax based on your filing status by using the above tables as a reference point. However, just to give you an idea of how the math for this works, the following are some examples of how federal income tax are calculated. Say, you’re a single filer with a taxable income of $50,000. Now, the tax rate that will apply to you is 22%. Following is how the tax rate will be applied to you: $9,700 x 10% = $970.00 $28,775 x 12% = $3,573 $10,525 x 22% = $2,315 Total tax = $6,858 Now, suppose your friend, Amanda, has a taxable income of $100,000. A 24% tax rate would apply to her. Following is how her tax amount will be calculated: $9,700 x 10%= $970.00 $28,775 x 12%= $3,573 $44,724 x 22%= $9,840 $15,800 x 24%= $3,792 Total Tax = $18,175 If the two of you were to get married and then file jointly, then following is how your tax will be calculated: $19,400 x 10% = $1,940 $59,550 x 12% = $7,146 $71,050 x 22% = $15,631 Total Tax = $24,717 If you have been able to follow and retain the information given in this post, you can confidently say that you know how income tax brackets work, how to use the federal income tax bracket, and how to calculate your federal income tax.Next Steps
Keep an eye on your income for the year. If it looks like you’ll be close to the line on one of these tax brackets, find some possible ways to reduce your taxable income. This could include putting more money into a tax-advantaged retirement account or a health-savings account. Or you could find ways to increase your personal deductions. Pushing your income to the next tax bracket down can really make a difference when it’s time to file!Best Tax Software – Compare Your Options
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