Income Tax Rates

Income tax rate for the bracket up to $197,000 will be 24% under the new plan.

The fifth income tax bracket will be taxed at 32% and extend up to $4 million.

The income tax bracket taxed at 35% will extend up to $626,000.

The top income tax bracket will be 37% for income earned above $626,000.

The new tax law will reduce income tax brackets for single filers. For instance, the 25% bracket will now be 22% up to $103,000, the 28% bracket will become 24% up to $197,000, and the 33% bracket will be 32% up to $4 million. The 35% bracket will extend to $626,000, and the top bracket will be 37% for income over $626,000.

The top tax rate for portfolio income is approximately 20%, while the top tax rate for ordinary income is about double that.