2021 IRS Tax Bracket

2021 tax bracket

2021 federal income tax brackets ((for taxes due in April 2022)) for individuals, married filing jointly, married filing separately and head of household are given below. You can see also tax rates for the year 2020 and tax bracket for the year 2019 on this site. The Internal Revenue Service announced the new tax rates for the tax year 2021 on 26th October 2020 . Revenue Procedure 2020-45 PDF provides details about these annual adjustments.

Personal tax bracket for 2021

Single filers tax bracket 2021

Tax rateTaxable income bracketTax owed
10%$0 to $9,95010% of taxable income
12%$9,951 to $40,525$995 plus 12% of the amount over $9,950
22%$40,526 to $86,375$4,664 plus 22% of the amount over $40,525
24%$86,376 to $164,925$14,751 plus 24% of the amount over $86,375
32%$164,926 to $209,425$33,603 plus 32% of the amount over $164,925
35%$209,426 to $523,600$47,843 plus 35% of the amount over $209,425
37%$523,601 or more$157,804.25 plus 37% of the amount over $523,600

Married, filing jointly-tax bracket 2021

Tax rateTaxable income bracketTax owed
10%$0 to $19,90010% of taxable income
12%$19,901 to $81,050$1,990 plus 12% of the amount over $19,900
22%$81,051 to $172,750$9,328 plus 22% of the amount over $81,050
24%$172,751 to $329,850$29,502 plus 24% of the amount over $172,750
32%$329,851 to $418,850$67,206 plus 32% of the amount over $329,850
35%$418,851 to $628,300$95,686 plus 35% of the amount over $418,850
37%$628,301 or more$168,993.50 plus 37% of the amount over $628,300

Married, filing separately -tax bracket 2021

Tax rateTaxable income bracketTax owed
10%$0 to $9,95010% of taxable income
12%$9,951 to $40,525$995 plus 12% of the amount over $9,950
22%$40,526 to $86,375$4,664 plus 22% of the amount over $40,525
24%$86,376 to $164,925$14,751 plus 24% of the amount over $86,375
32%$164,926 to $209,425$33,603 plus 32% of the amount over $164,925
35%$209,426 to $314,150$47,843 plus 35% of the amount over $209,425
37%$314,151 or more$84,496.75 plus 37% of the amount over $314,150

Head of household -tax bracket 2021

Tax rateTaxable income bracketTax owed
10%$0 to $14,20010% of taxable income
12%$14,201 to $54,200$1,420 plus 12% of the amount over $14,200
22%$54,201 to $86,350$6,220 plus 22% of the amount over $54,200
24%$86,351 to $164,900$13,293 plus 24% of the amount over $86,350
32%$164,901 to $209,400$32,145 plus 32% of the amount over $164,900
35%$209,401 to $523,600$46,385 plus 35% of the amount over $209,400
37%$523,601 or more$156,355 plus 37% of the amount over $523,600

Standard Deduction for Tax Year 2021

Single(married or unmarried)$12,550
Married Filing Jointly$25,100
Head of Household$18,800

Alternative Minimum Tax Exemption

Filing StatusExemption Amount
Unmarried Individuals$73,600
Married Filing Jointly$114,600

Alternative Minimum Tax -Phaseout

In 2021, the exemption will start phasing out at $523,600 in AMTI for single filers and $1,047,200 for married taxpayers filing jointly

Filing StatusThreshold
Unmarried Individuals$523,600
Married Filing Jointly$1,047,200

2021 Earned Income Tax Credit

Filing Status No ChildrenOne ChildTwo ChildrenThree or More Children
Single or Head of HouseholdIncome at Max Credit$7,100$10,640$14,950
Maximum Credit$543$3,618$5,980$6,728
Phaseout Begins$8,880$19,520$19,520$19,520
$15,980$42,158$47,915$51,624
Married Filing JointlyPhaseout Ends (Credit Equals Zero)$7,100$10,640$14,950$14,950
Maximum Credit$543$3,618$5,980$6,728
Phaseout Begins$14,820$25,470$25,470$25,470
Phaseout Ends (Credit Equals Zero)$21,920$48,108$53,865$57,414

Child Tax Credit

The child tax credit totals at $2,000 per qualifying child and is not adjusted for inflation. However, the refundable portion of the Child Tax Credit is adjusted for inflation but will remain at $1,400 for 2021.

2021 Capital Gains Tax Rates & Brackets (Long-Term Capital Gains)

Long-term capital gains are taxed using different brackets and rates than ordinary income.

 For Unmarried Individuals, Taxable Capital Gains OverFor Married Individuals Filing Joint Returns, Taxable Capital Gains OverFor Heads of Households, Taxable Capital Gains Over
0%$0$0$0
15%$40,400$80,800$54,100
20%$445,850$501,600$473,750

2021 Long Term Capital Gains Tax Rate

 Rate (%)For Unmarried Individuals, Taxable Capital Gains OverFor Married Individuals Filing Joint Returns, Taxable Capital Gains OverFor Heads of Households, Taxable Capital Gains Over
0%$0$0$0
15%$40,400$80,800$54,100
20%$445,850$501,600$473,750

2021 Qualified Business Income Deduction

A twenty percent deduction for pass-through businesses qualified business income for unmarried taxpayers and married taxpayers filing jointly are as under for the tax year 2021.

Filing StatusThreshold
Unmarried Individuals$164,900
Married Filing Jointly$329,800

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