The IRS released the federal marginal tax rates and income brackets for 2021 on Monday. The seven tax rates remain unchanged, while the income limits have been adjusted for inflation.
The 2021 tax brackets affect the taxes that will be filed in 2022. These are the 2020 brackets.
Here are the new brackets for 2021, depending on your income and filing status.
These are the rates and income brackets for federal taxes. Your state may have different brackets, no taxes at all or a flat rate.
The above rates apply to taxable income, after the standard deduction (or itemized deductions) and other tax breaks have been taken. The IRS also announced that the standard deduction for tax year 2021 will increase by $300 to $25,100 for married couples filing jointly, and by $150 to $12,550 for single individuals and married individuals filing separately. For heads of households, the standard deduction will increase by $150 to $18,800.