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.
Table of Contents
Personal tax bracket for 2021
Single filers tax bracket 2021
Tax rate
Taxable income bracket
Tax owed
10%
$0 to $9,950
10% 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 rate
Taxable income bracket
Tax owed
10%
$0 to $19,900
10% 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 rate
Taxable income bracket
Tax owed
10%
$0 to $9,950
10% 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 rate
Taxable income bracket
Tax owed
10%
$0 to $14,200
10% 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 Status
Exemption 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 Status
Threshold
Unmarried Individuals
$523,600
Married Filing Jointly
$1,047,200
2021 Estate Income Tax Rate
Estate’s Income
Tax rate
Upto $2,650
10%
$2,651 to $9,550
24%
$9,551 to $13,050
35%
$13,051 & more
37%
2021 Earned Income Tax Credit
Filing Status
No Children
One Child
Two Children
Three or More Children
Single or Head of Household
Income 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 Jointly
Phaseout 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 Over
For Married Individuals Filing Joint Returns, Taxable Capital Gains Over
For 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 Over
For Married Individuals Filing Joint Returns, Taxable Capital Gains Over
For Heads of Households, Taxable Capital Gains Over
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.
Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website http://taxworry.com. He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.
