The Republican tax bill passes Congress — here's how your tax bracket could change in 2018

  • Income tax brackets will change in 2018 if President Donald Trump enacts the GOP tax legislation.
  • The Republican tax plan proposes keeping seven tax brackets, but it changes the income ranges.
  • The final bill proposes eliminating the personal exemption and increasing the standard deduction.

Senate Republicans passed their tax bill just after midnight on Wednesday, leaving a technical vote in House as the last remaining obstacle before the bill can be sent to President Donald Trump's desk.

The bill, the Tax Cuts and Jobs Act, is set to make sweeping changes to the tax code for businesses and, on average, American taxpayers.

Here's how this new tax plan could change federal income tax brackets in 2018 compared with those in 2017.

First, for single filers:

tax brackets single filers finalElena Holodny/Business Insider

  • 10%: $0 to $9,525 of taxable income for an individual
  • 12%: $9,526 to $38,700 individual
  • 22%: $38,701 to $82,500 individual
  • 24%: $82,501 to $157,500 individual
  • 32%: $157,501 to $200,000 individual
  • 35%: $200,001 to $500,000 individual
  • 37%: over $500,000 individual

And second, for joint filers:

tax brackets joint filers finalElena Holodny/Business Insider

  • 10%: $0 to $19,050 for married joint filers
  • 12%: $19,051 to $77,400 joint
  • 22%: $77,401 to $165,000 joint
  • 24%: $165,001 to $315,000 joint
  • 32%: $315,001 to $400,000 joint
  • 35%: $400,001 to $600,000 joint
  • 37%: Over $600,000 joint

Under the final version of Republican plan, there would still be seven federal income tax brackets — but at slightly lower rates and adjusted income ranges.  

RELATED: Check out Republican senators who were on the fence about the GOP tax bill:

Republican senators who were on the fence about the GOP tax bill
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Republican senators who were on the fence about the GOP tax bill

Ron Johnson of Wisconsin

Susan Collins of Maine

Jeff Flake of Arizona

John McCain of Arizona

Bob Corker of Tennessee

Steve Daines of Montana

James Lankford of Oklahoma

Lisa Murkowski of Alaska


About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly — if the tax plan is enacted.

In 2017, the standard deduction for a single taxpayer is $6,350, plus one personal exemption of $4,050.

The GOP proposal would combine those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers. 

More from Business Insider: 
Rich homeowners in blue states are among the biggest losers in the GOP tax bill 
Trump's tax plan could bring $250 billion into the US — here are the companies set to benefit most 
Here's what America's biggest companies plan to do with all that cash coming back to the US

SEE ALSO: 5 last-minute tax moves to make now before the GOP tax plan goes into effect

NOW WATCH: Here's what the Senate Republicans' tax plan means if you're making $25,000, $75,000, or $175,000 a year

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