President Trump recently signed the tax reform bill into law, and it makes major changes to the U.S. tax code for both individuals and corporations. In fact, the bill represents the most significant tax changes in the United States in more than 30 years.With that in mind, here’s a guide to all of the changes that will go into effect — the new tax brackets, modified deductions and credits, corporate tax changes, and more.

Pile of buttons that say tax reform.

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The 2018 tax brackets

In President Trump’s campaign tax plan, he proposed reducing the number of tax brackets from seven to three, and the House of Representatives’ original tax reform bill contained four brackets. However, the final bill kept the seven-bracket structure but with mostly lower tax rates.

Marginal Tax Rate Single Married Filing Jointly Head of Household Married Filing Separately
10% $0-$9,525 $0-$19,050 $0-$13,600 $0-$9,525
12% $9,525-$38,700 $19,050-$77,400 $13,600-$51,800 $9,525-$38,700
22% $38,700-$82,500 $77,400-$165,000 $51,800-$82,500 $38,700-$82,500
24% $82,500-$157,500 $165,000-$315,000 $82,500-$157,500 $82,500-$157,500
32% $157,500-$200,000 $315,000-$400,000 $157,500-$200,000 $157,500-$200,000
35% $200,000-$500,000 $400,000-$600,000 $200,000-$500,000 $200,000-$300,000
37% Over $500,000 Over $600,000 Over $500,000 Over $300,000

Data Source: Joint Explanatory Statement of the Committee of Conference

For comparison, here are the 2018 tax brackets that were set to take effect under previous tax law.Continue Reading..