The IRS has announced the tax rates and brackets for 2019. These are the rates for the 2019 tax year. You’ll use these rates when you file taxes in 2020. Use the 2018 tax rates when you file taxes in April 2019.

What are the 2019 income tax brackets?

2019 Tax RateIndividual Married, Filed JointlyHead of Household
10%0 to $9,7000 to $19,4000 to $13,850
12%$9,701 to $39,475$19,401 to $78,950$13,851 to $52,850
22%$39,476 to $84,200$78,951 to $168,400$52,851 to $84,200
24%$84,201 to $160,725$168,401 to $321,450$84,201 to $160,700
32%$160,726 to $204,100$321,451 to $408,200$160,701 to $204,100
35%$204,101 to $510,300$408,201 to $612,350$204,101 to $510,300
37%$510,301 and up$612,351 and up$510,301 and up

How do I use the 2019 tax rates?

You’ll use the 2019 tax rates when you file taxes for that year. Typically, that’s done by April 2020.

How does this compare to the 2018 tax brackets?

Remember: you’ll use the below table when you calculate your taxes for the 2018 tax year. Taxpayers typically file this by April 2019.

Tax RateIndividualsMarried, Filing JointlyHead of Household
10%Up to $9,525Up to $19,050Up to $13,600
12%$9,526 to $38,700$19,051 to $77,400$13,600-$51,800
22%$38,701 to $82,500$77,401 to $165,000$51,800-$82,500
24%$82,501 to $157,500$165,001 to $315,000$82,500-$157,500
32%$157,501 to $200,000$315,001 to $400,000$157,500-$200,000
35%$200,001 to $500,000$400,001 to $600,000$200,000-$500,000
37%over $500,000over $600,000$500,000+

What will the standard deduction be in 2019

The standard deduction sees some slight increases:

Filing StatusStandard Deduction Amount
Married, Filing Jointly$24,400
Married, Filing Separately$12,200
Head of Household$18,350

Why are the differences?

The tax rates remain the same but the brackets have changed. The difference is due to an annual inflation adjustment. It impacts more than 60 tax provisions, including these tax rate schedules.

Any significant changes I should know about?

The IRS singled out a few other changes:

  • The 2019 Alternative Minimum Tax exemption amount for 2019 is $71,700 for individuals, $111,700 for married, filing jointly.
  • The 2019 AMT beings to phase out at $510,300 for individuals, $1,020,600 for married, filing jointly.
  • The annual exclusion for gifts in 2019 is $15,000, the same as 2018.
  • If you’re claiming the Lifetime Learning Credit, the adjusted gross income amount used by joint filers in 2019 is $116,000, up from $114,000.
  • The standard deduction is increasing: $12,200 for individuals and $24,400 for married taxpayers filing jointly. This is a $200 and $400 increase over 2018, respectively.

How can I maximize these new tax rates?

Many experts offer the same advice as previous years: maximize your tax-advantaged accounts like your 401K and to claim as many deductions as you’re eligible for. If you’re self-employed, don’t forget to deduct business expenses like your business mileage.

A mileage-tracking app like MileIQ can help you get the most out of your mileage. This deduction can help lower your taxable income, which can end up lowering the taxes you pay.

How have deductions changed?

The tax reform law has changed deductions a bit. Some major deductions changers are:

  • State and local taxes. The SALT deductions may not exceed $10,000.
  • Mortgage interest. This deduction remains but has been tweaked for mortgages taken after December 15, 2017.
  • Unreimbursed employee expenses. Miscellaneous deductions which exceed 2 percent of your AGI are no longer deductible. This includes things like unreimbursed mileage for W2 workers.

There are a variety of other changes to the tax code, so please consult a tax pro before making any decisions.

Marin Perez

Marin Perez

Marin is part of the marketing team at MileIQ. He's excited to see how entrepreneurs are using tools like MileIQ and Spend to be more successful. When not working, he's thinking about his next trip.
Marin Perez

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