The Internal Revenue Service (IRS) has announced its changes for the 2019 tax rates year. Changes will not impact filings for the 2018 year and are not as drastic as the changes that were made as part of President Trump’s tax policy.

Here are the most important figures that you’ll need to know from the incoming changes.

Tax Rates Brackets Adjusted for Inflation

In most cases, families and individuals will remain within the same tax brackets. Those previously on the fringe are the most likely to see changes when filing returns in 2020.

• Incomes below $9,700 per year (or $19,400 for joint spousal filings) will be taxed at a rate of 10%.
• Incomes above $9,700 per year (or $19,400 for joint filings) will be taxed at a rate of 12%.
• Incomes above $39,475 (or $78,950 for joint filings) will be taxed at a rate of 22%.
• Incomes above $84,200 (or $168,400 for joint filings) will be taxed at a rate of 24%.
• Incomes above $160,725 (or $321,450 for joint filings) will be taxed at a rate of 32%.
• Incomes above $204,100 (or $408,200 for joint filings) will be taxed at a rate of 35%.
• Incomes above $510,000 (or $612,350 for joint filings) will be taxed at the highest rate of 37%.

As always, the structure is progressive, and these figures should not be entirely surprising for most families or individuals. You will likely find that your own tax rates situation is largely unchanged.

It’s also important to note that while the Individual Mandate Penalty for those without health insurance coverage is still technically included in law, there will be no penalty fees applied to taxpayers. This maintains the directive made by President Trump under his new tax law introduced in 2017.

Most credits remain largely unchanged. Small increases will help to keep the value of credits in line with inflation. For example, the earned income credit of $6,557 for joint filers with three or more children has increased slightly from $6,431.

The exclusion for financial gifts remains unchanged, with a maximum untaxed value of $15,000.

President Trump May Still Adjust Tax in 2019

President Trump recently hinted that he could revisit middle-income tax rates to provide significant tax cuts to more Americans. Although no updates have been given since the mid-term elections, it is anticipated that the White House could make another announcement regarding this before the end of the year.

Complete details of the latest inflation adjustments can be found on the official IRS website.