The tax codes have been released for 2021 by the IRS. The tax brackets remain the same but the income limits were increased account for inflation.
Along with the income limit increase, the standard deduction for 2021 was also increased. If you a married but filing separately, or filing individually, the standard deduction is $12,550, increased by $150. If you are married and filing jointly, the standard deduction is $25,100, increased by $300. For heads of households, the standard deduction is $18,800, increased by $150.
Below are the tax brackets for 2021 on the left and you can compare them with the 2020 rates on the right.
| Filing Single: 2021 | 2020 |
| 10%: Up to $9,950 12%: Income of $9,951 to $40,525 22%: Income of $40,526 to $86,375 24%: Income of $86,376 to $164,925 32%: Income of $164,926 to $209,425 35%: Income of $209,426 to $523,600 37%: Income over $523,600 | 10%: Up to $9,875 12%: Income of $9,876 to $40,125 22%: Income of $40,126 to $85,525 24%: Income of $85,526 to $163,300 32%: Income of $163,301 to $207,350 35%: Income of $207,351 to $518,400 37%: Income over $518,400 |
| Married, filing jointly: 2021 | 2020 |
| 10%: Up to $19,900 12%: Income of $19,901 to $81,050 22%: Income of $81,051 to $172,750 24%: Income of $172,751 to $329,850 32%: Income of $329,851 to $418,850 35%: Income of $418,851 to $628,300 37%: Income over $628,300 | 10%: Up to $19,750 12%: Income of $19,751 to $80,250 22%: Income of $80,251 to $171,050 24%: Income of $171,051 to $326,600 32%: Income of $326,601 to $414,700 35%: Income of $414,701 to $622,050 37%: Income over $622,050 |
| Married, filing separately: 2021 | 2020 |
| 10%: Up to $9,950 12%: Income of $9,951 to $40,525 22%: Income of $40,526 to $86,375 24%: Income of $86,376 to $164,925 32%: Income of $164,926 to $209,425 35%: Income of $209,426 to $314,150 37%: Income over $314,150 | 10%: Up to $9,875 12%: Income of $9,876 to $40,125 22%: Income of $40,126 to $85,525 24%: Income of $85,526 to $163,300 32%: Income of $163,301 to $207,350 35%: Income of $207,351 to $311,025 37%: Income over $311,025 |
| Heads of household: 2021 | 2020 |
| 10%: Up to $14,200 12%: Income of $14,201 to $54,200 22%: Income of $54,201 to $86,350 24%: Income of $86,351 to $164,900 32%: Income of $164,901 to $209,400 35%: Income of $209,401 to $523,600 37%: Income over $523,600 | 10%: Up to $14,100 12%: Income of $14,101 to $53,700 22%: Income of $53,701 to $85,500 24%: Income of $85,501 to $163,300 32%: Income of $163,301 to $207,350 35%: Income of $207,351 to $518,400 37%: Income over $518,400 |
