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Trump Tax Plan Calculator (Final GOP Bill)

Last updated 4th Oct 2022

This online tool can estimate the difference an individual might pay in federal income tax using the current Internal Revenue Service tax code and the final tax bill President Trump fist announced on April 26, 2017. This calculator reflects the final plan as of December 21, 2017, the fifth version we've published.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Filing Status

In this drop down box, select the federal income tax rate schedule that applies: single, married filing separate returns, married filing joint returns, or head of household.

Trump Tax Impact

While it was initially made public Trump's tax proposal would have only three tax brackets (10%, 25% and 35%), the income thresholds for each bracket were only recently released. This calculator allows the user to see the potential impact on federal income taxes in 2018 under the new law. The final bill contained brackets of 10%, 12%, 22%, 24%, 32%, 35% and 37%.

Wages, Salaries, Income ($)

This is the total of all wages, salaries, and income, as typically reported on the tax Form W-2.

Adjustments to Income ($)

The most common adjustments to income include dividends, taxable interest, capital gains or losses, IRA distributions, tax refunds, pensions, and Social Security benefits. The net adjustment can be either a positive number, which adds to taxable income, or a negative value, which lowers taxable income.

Standard Deductions from Income ($)

This can be an estimate of the total itemized deductions derived from Schedule A or the standard deduction, which can be found in the table below.

Trump Allowed Deductions ($)

In this section of the calculator, the user should provide an estimate of the allowed deductions under Trump's proposal, which indicates a significant increase (near doubling) of the standard deduction. Both the existing and estimated proposed values are shown below.

SingleHead of HouseholdMarried Filing SeparatelyMarried Filing Joint ReturnsCurrent Tax Code$6,350$9,350$6,350$12,700Trump Bill$12,000$12,000$12,000$24,000

Note: Deductions from income should be entered as a positive value.

Number of Exemptions

The number of exemptions is typically equal to the number of dependents claimed on Form 1040. Exemptions usually include the taxpayer, their spouse, children, and qualifying relatives. In 2017, each exemption lowers an individual's taxable income by $4,050.

Adjusted Gross Income ($)

The sum of all wages, salaries, and income, plus adjustments to income, equals the taxpayer's adjusted gross income.

Exemptions ($)

The value of each exemption taken in 2017 is equal to $4,050. Taxpayers with adjusted gross income levels over $150,000 may lose part of this exemption, as determined in the instructions to Form 1040. Under the new law, personal exemptions are eliminated and state and local income taxes (such as property taxes) are limited to $10,000.

Total Taxable Income ($)

The sum of adjusted gross income plus deductions and exemptions is equal to the total taxable income. If this value is less than zero, then no federal income taxes are due.

Federal Income Tax ($)

Based on the total taxable income found in the previous step, as well as the filing status and year, this is an estimate of the federal income tax due based on the current federal income tax rate tables or an estimate of the taxes owed under the Trump bill.

Trump Bill Savings ($)

This is an estimate of the dollars saved or (owed) under the draft bill.

Trump Bill Savings (%)

This is an estimate of the percentage decline or increase the individual would pay under the newly introduced tax bill.

Trump Tax Plan Calculator (Final GOP Bill) - Money-Zine.com

Disclaimer: These calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculator results is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Moneyzine Editor

Moneyzine Editor