New 2021 IRS Tax Rates
There are seven brackets: 37%, 35%, 32%, 24%, 22%, 12%, and 10%. Here’s a look at income levels by tax rate:
| Tax Rate | Individual Single Taxpayers, Taxable Income Over | Married Couples Filing Jointly, Taxable Income Over | Head of Household, Taxable Income Over |
|---|---|---|---|
| 37% | $523,600 | $628,300 | $523,600 |
| 35% | $209,425 | $418,850 | $209,400 |
| 32% | $164,925 | $329,850 | $164,900 |
| 24% | $86,375 | $172,750 | $86,350 |
| 22% | $40,525 | $81,050 | $54,200 |
| 12% | $9,950 | $19,900 | $14,200 |
| 10% | $0 | $0 | $0 |
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For your reference, you can still access the 2020 tax rates here.
Standard Deduction Update
There are a few changes for standard deductions for 2021:
- Married couples filing jointly increases by $300 to $25,100
- Married individuals filing separately increases by $150 to $12,550
- Single taxpayers increase by $150 to $12,550
- Heads of households increases by $150 to $18,800
Remember that these adjustments will affect the taxes you file in 2022, not the taxes you file in early 2021. You can read the full announcement from the IRS here.
If you have any tax or money questions, contact Clark’s Consumer Action Center for free help and advice.
More Resources From Clark.com:
The post Here Are the New IRS Tax Brackets for 2021 appeared first on Clark Howard.
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