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Tax Reform Calculator

You are currently viewing Federal Tax Reform Calculator 2017/2018 | 2017 Tax Reform Calculator. Use the Tax reform Calculator to calculate your Federal and State Tax Return before and after the new tax reform legislation. Updated with 2017/2018 tax tables.

Tax Reform Calculator [ Federal & State ]
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The Tax Reform Calculator is a sister site to the Tax Form Calculator which has supported free tax return calculations and salary estimates since 2010. In 2017, Donald Trump, 45th President of the United States announced plans for sweeping tax reforms. The aim of the tax reforms being to simply tax for average Americans, reduce the tax burden for working families and make tax more transparent and easier for businesses. These three aims being part of President Trumps aim to boost the American economy, improve business growth in America and provide a better quality of life for American families.

We all agree those are great aims to have, a strong economy and reduced taxes and good for families and business alike but what Politicians promise and deliver are not always the same thing. The important question is:

What will the tax reforms really mean to you?

Since 2010, we have provided tools which provide a detailed breakdown of tax calculations to allow a clear view of how key payroll taxes are calculated. In this special site setup for the tax reforms, we provide a set of calculators and tools that will allow you to enter your salary or taxable amount (depending on the tax reform calculator you are using) and calculate the new tax commitments under the tax reform legislation.

For transparency, the tax reform calculator will provide an example of your tax return calculation under the current tax law and also under the planned tax law once tax reforms come into place. The tax reform calculator will also show you how much better or worse off you will be after the tax reform legislation comes into place.

The tax Reform Calculator is updated as the tax laws change so you can check back as tax reforms solidify, make a quick tax calculation and email/print it for your reference or discussion on tax blogs, tax websites etc. You can also add a copy of the Tax Reform Calculator to your won website to allow your users to use the tool whilst browsing your tax advice, tax refund articles etc.

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Tax Reform Status

On the 2nd November 2017, the Gop House Ways and Means Committee proposed the following tax reforms:

  1. Change the 2018 tax brackets for seven tax thresholds and rates to four tax thresholds and rates (see table below)
  2. Single Filers: Double the Standard Deduction
  3. Married Filing Jointly: Double the Standard Deduction (eliminating the marriage penalty)
  4. Increase in Child Tax Credit
  5. New: Family Tax Credit for:
    1. Filer
    2. Spouse
    3. Children over 17 (who the filer supports)
    4. Ailing Elderly parents
    5. Adult children with a disability
  6. Cap on itemised deduction
  7. Small business owners who are setup as S-Corporations or Limited Liability companies and receive pass-through income via a K-1 or form 1065, will see their top rate reduced from a high of 39.6% down to 25% on earnings distributions.
  8. Top Corporate Business rate reduction

Tax Reform Tax Tables

The table below illustrates the planned 2018 tax tables and the new tax tables for 2018 as proposed by the Gop House Ways and Means Committee.

Please note that tax reforms are ongoing and certain figures are, as yet, unconfirmed. Where figures are unclear, the planned 2018 figures have been used to allow you to calculate your tax commitments using a benchmarked approach.

Personal and Family Tax Reform Details

House Tax Bill Proposals
What? Planned for 2018 New Proposal for 2018 Difference
Tax Brackets
Rate Threshold
10% $9,525
15% $38,700
25% $93,700
28% $195,450
33% $424,950
35% $426,700
39.6% $426,700+
Rate Threshold
12% $45,000
25% $200,000
35% $500,000
39.6% $500,000+
See example Salary Illustrations
Standard Deduction (Single Filer) $6,350 $12,000 $5,850 increase
Standard Deduction (Married Joint Filer) $13,000 $24,000 $11,400 increase
Child Tax Credit $1,050 $1,600 $550 increase
Family Tax Credit - $300 $300 increase per qualifier
Personal Exemption $4,050 - $4050 reduction per qualifier
Senate Tax Bill Proposals
What? Planned for 2018 New Proposal for 2018 Difference
Tax Brackets
Rate Threshold
10% $9,525
15% $38,700
25% $93,700
28% $195,450
33% $424,950
35% $426,700
39.6% $426,700+
Rate Threshold
10% $9,525
12% $38,700
22% $93,700
24% $195,450
32% $424,950
35% $426,700
38.5% $426,700+
See example Salary Illustrations
Standard Deduction (Single Filer) $6,350 $12,000 $5,650 increase
Standard Deduction (Married Joint Filer) $13,000 $24,000 $11,000 increase
Child Tax Credit $1,050 $2,000 $950 increase
Family Tax Credit - - No Change
Personal Exemption $4,050 - $4050 reduction per qualifier

How to estimate your tax return

You can quickly estimate your tax return for planned and House / senate proposed tax reform rates by following the steps in the Simplified Tax Reform Calculation below, alternatively use the advanced features for more specific tax reform calculations.

Tip:

  1. Use the Advanced Tax Reform Calculator to edit your refundable and non-refundable tax credits
  2. Ensure you click calculate after you make changes

Simplified Tax Reform Calculation

  1. Enter your income.
  2. Select State for State Tax Reform Calculation.
  3. Press Calculate to see your tax and take home breakdown for each proposed Tax Proposal - Tax made Simple

The Tax Reform Calculator is now set to use the 2017/2018 tax tables by default.

Tax Reform Calculator

You may prefer to use the State Tax Reform Calculator which is updated to include the State tax tables and rates for 2017-2018 tax year.

How to use the advanced tax reform calculator

  1. Enter your income.
  2. Check the box - Advanced Federal Tax Reform Calculator
  3. Choose Standard or Itemized Tax Return Calculation
  4. Confirm Number of Dependants
  5. Confirm Number of Children you claim Tax Credits for
  6. Enter Tax Withholdings for Tax Rebate Calculation
  7. Select other relevant tax factors (Age related tax allowances, head of household tax allowance, tax-deferred retirement plan, cafeteria etc)
  8. Click Calculate to see your tax, Medicare and take-home breakdown - Federal Tax made Simple

Tax Illustrations

Looking for a quick snapshot tax illustration and example of how to estimate your tax return after the tax reforms? Go to our Salary Tax Reform Illustrations and select an annual salary assessment for an instant tax reform illustration with tax breakdown and Medicare example.

This federal tax reform calculator is as good as the feedback, your support, requests and bug catches help to improve the accuracy of the tax calculator for all.

This tax reform calculator aims to balance ease of use with transparency of tax reform calculation but is provided for illustration only. Remember that you should always seek professional advice and audit your tax return

If you would like us to add anything information to the Tax Reform Calculator or have a comment (always good to have positive feedback! also good to have 'this could be better if...' type feedback too.), please contact us, thank you..