Here Are the New IRS Tax Brackets for 2021

The Internal Revenue Service (IRS) just announced the new annual inflation adjustments for the next tax year. The IRS says there are changes for more than 60 tax provisions.

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 RateIndividual Single Taxpayers, Taxable Income OverMarried Couples Filing Jointly, Taxable Income OverHead 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

#tablepress-259 from cache

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.