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Here's how the new US tax brackets for 2019 affect every American taxpayer

Jan 8, 2019, 02:18 IST

Shayanne Gal/Business Insider

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  • The IRS has taken inflation into account and released new tax brackets for 2019, which will apply to income earned this year.
  • Tax Day 2019 - when taxes are due for income earned in 2018 - is Monday, April 15.
  • The federal income tax ranges have shifted slightly and the standard deduction is now $12,200 for single filers and $24,400 for married filers.

Tax Day 2019 is April 15. That means taxes are due for income earned in 2018, the first tax season under the 2017 GOP tax law.

The IRS has updated the seven federal income tax brackets for 2019 to reflect inflation, which went into effect on January 1. Any income earned in 2019 is subject to the new tax brackets.

The standard deduction is now $12,200 for single filers and $24,400 for married filers, up $200 and $400, respectively.

Here's how the brackets have changed for the new year compared to 2018.

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For single filers:

Shayanne Gal/Business Insider

For married filers:

Shayanne Gal/Business Insider

For head of household filers:

Shayanne Gal/Business Insider

Other tax changes for 2019 include increased limits for retirement contributions:

  • $19,000 limit for 401(k), 403(b) and most 457 plans (if you're 50 or older, you can put away an additional $6,000)
  • $6,000 limit for IRAs (if you're 50 or older, you can put away an additional $1,000)

And higher exemptions for gifts and estate taxes:

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  • $11.4 million limit for lifetime gift and estate tax exemption
  • $15,000 limit for annual gift and estate tax exemption (same as 2018)

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