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IRS adjusts tax brackets annually to keep up with inflation and recently introduced tax brackets for 2021.  The brackets show how increments of your income will be taxed.  Don’t be confused, these tax brackets are not for tax returns due April 2021.  Click here for 2020 tax bracket information.  The 2021 federal income tax brackets are for the tax returns that you will file in 2022.  While tax brackets can help you plan, ezTaxReturn.com will manage all rates and calculations when you use them to file.

Single filers

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

Married filing jointly

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

Married filing separately

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

Head of household

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

2021 Standard deduction

The standard deduction is a fixed amount that lowers your taxable income.  You can only claim it if you don’t itemize your deductions.  The standard deduction amount varies based on your filing status, age and whether you can be claimed as a dependent by someone else. When you prepare your return with ezTaxReturn, we’ll compare your standard deduction against your itemized deductions so you choose the one that gives you the biggest savings.

Filing StatusStandard deduction amount
Single $12,550
Head of household$18,800
Married filing jointly$25,100
Married filing separately$12,550

Alternative Minimum Tax (AMT) exemption

Everyone has to pay their fair share of taxes.  If you earn more than the alternative minimum tax exemption amount, you have to calculate your taxes twice.  Once using the standard rules and another time using the Alternative Minimum Tax.  Then you have to pay whichever tax bill is higher.

Filing statusExemption amountBegins to phaseout at
Single$73,600$523,600
Married filing jointly$114,600$1,047,200

Long-term capital gains tax rates

When you venture into the stock market and make money on your investments, Uncle Sam wants some of your profits.  If you had the asset for over a year, you may owe 0%, 15% or 20% depending on your income.

Filing Status0% Tax Rate15% Tax Rate20% Tax Rate
SingleUp to $40,400$40,401 – $445,850Over $445,850
Head of householdUp to $54,100$54,101 – $473,750Over $473,750
Married filing jointlyUp to $80,800$80,801 – $501,600Over $501,600
Married filing separatelyUp to $40,400$40,401 – $250,800Over $250,800