2018 Tax Fast Facts

Federal Income Tax Rates for 2018

Married Filing Jointly

Taxable Income Tax Rate
$0 to $19,050 10%
$19,051 to $77,400 12%
$77,401 to $165,000 22%
$165,001 to $315,000 24%
$315,001 to $400,000
32%
$400,001 to $600,000 35%
More than $600,000 37%

Single

Taxable Income 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%
More than $500,000 37%

Capital Gain Tax Rates for 2018

Short Term

Tax Bracket Asset Holding Period Rate
10% 10%
12% 12%
22% 22%
24% 24%
32% 32%
35% 35%
37% 37%

Long Term

Asset Holding Period Rate Married Filing Jointly* Single*
0% $0 to $77,200 $0 to $38,600
15% $77,201 to $479,000 $38,601 to $425,800
20% More than $479,000 More than $425,800

* Could increase due to inflation adjustment. Source: Internal Revenue Service.

Estate and Gift Tax Exemptions for 2018

  • Estate Tax Exempt Amount: $10 Million*
  • Gift Tax Exempt Amount: $10 Million*
  • Gift Tax Annual Exclusion Amount: $15,000*

* Could increase due to inflation adjustment. Source: Internal Revenue Service.

IRA and Retirement Plan Limits for 2018

Maximum IRA Contributions

The maximum amount you and/or your spouse can contribute to an IRA is1:

Account Type Maximum Amount
Roth IRA (single) $5,500
Roth IRA (married filing jointly) $11,000
Traditional IRA (single) $5,500
Traditional IRA (married filing jointly) $11,000
Catch-up contributions2 (single) $1,000
Catch-up contributions2 (married filing jointly) $2,000

1 Or compensation if less.
2 Age 50 or older
.

Deductible Traditional IRA Phaseouts

Deductibility depends on MAGI and whether you or your spouse is covered by an employer-sponsored retirement plan. You must figure your deduction and your spouse's deduction separately. The deduction for contributions to traditional IRAs phases out over the following MAGI levels:

Covered by employer plan and:

Filing Status AGI Level
Single $63,000-$73,000
Married filing jointly $101,000-$121,000

Not covered by employer plan and:

Filing Status AGI Level
Single or married filing jointly with a spouse who also is not covered No Limit
Married filing jointly with a spouse who is covered $189,000-$199,000

There is no income limit for contributions to a non-deductible traditional IRA.

Roth IRA Eligibility Phaseouts

Eligibility for Roth IRAs is phased out over the following MAGI levels:

Filing Status AGI Level
Single $120,000-$135,000
Married filing jointly $189,000-$199,000
Married filing separately $0-$10,000

Maximum Retirement Plan Contributions

The maximum amount you can contribute to an employer-sponsored retirement plan; generally is the lesser of 100% of your salary or:

Plan Type Maximum Amount
401(k) and 403(b) $18,500
SIMPLE-IRA $12,500
401(k) and 403(b) Catch-up contributions3 $6,000
SIMPLE-IRA Catch-up contributions3 $3,000


3 Age 50 or older

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

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