HomeFinancial PlanningTax Shelter2020 and 2021 Tax Brackets

2020 and 2021 Tax Brackets

This article contains the latest information on federal income tax brackets for the years 2020 and 2021. Also known as tax tables or rate schedules, this information can be used to figure out the incremental federal taxes owed on each additional dollar of income.

For example, individuals in the 24% tax bracket owe $0.24 in federal income taxes for each dollar of incremental income. Later in this article, we’ll provide an example demonstrating how these tables are used.

Income Tax Rates in 2020 and 2021

For the years 2003 through 2012, there were a total of six federal income tax brackets. The American Taxpayer Relief Act of 2012 added a seventh bracket (39.6%) in 2013. The remaining six rates were unchanged at 10%, 15%, 25%, 28%, 33% and 35%. Starting in 2018, there remains seven tax brackets, with the new values of 10%, 12%, 22%, 24%, 32%, 35% and 37%. As the tables below demonstrate, income taxes in the United States are progressive; as income increases, the rate of tax increases too.

We offer an income tax calculator that can be used to estimate taxes owed for the years 2017 through 2021. To calculate the actual tax due, it’s necessary to use the appropriate 1040 tax form.

2021 Income Tax Rates

The tables that follow provide the 2021 income tax brackets.

Unmarried Individuals – Rate Schedule X (2021)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $9,950 $0 + 10% $0
9,950 40,525 995.00 + 12% 9,950
40,525 86,375 4,664.00 + 22% 40,525
86,375 164,925 14,751.00 + 24% 86,375
164,925 209,425 33,603.00 + 32% 164,925
209,425 523,600 47,843.00 + 35% 209,425
523,600 157,804.00 + 37% 523,600

Married Filing Jointly or Surviving Spouses – Rate Schedule Y-1 (2021)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $19,900 $0 + 10% $0
19,900 81,050 1,990.00 + 12% 19,900
81,050 172,750 9,328.00 + 22% 81,050
172,750 329,850 29,502.00 + 24% 172,750
329,850 418,850 67,206.00 + 32% 329,850
418,850 628,300 95,686.00 + 35% 418,850
628,300 168,993.50+ 37% 628,300

Married Filing Separately – Rate Schedule Y-2 (2021)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $9,950 $0 + 10% $0
9,950 40,525 995.00 + 12% 9,950
40,525 86,375 4,664.00 + 22% 40,525
86,375 164,925 14,751.00 + 24% 86,375
164,925 209,425 33,603.00 + 32% 164,925
209,425 314,150 47,843.00 + 35% 209,425
314,150 84,496.75 + 37% 314,150

Head of Household – Rate Schedule Z (2021)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $14,200 $0 + 10% $0
14,200 54,200 1,420.00 + 12% 14,200
54,200 86,350 6,220.00 + 22% 54,200
86,350 164,900 13,293.00 + 24% 86,350
164,900 209,400 32,145.00 + 32% 164,900
209,400 523,600 46,385.00 + 35% 209,400
523,600 156,355.00 + 37% 523,600

2020 Income Tax Rates

The tables that follow provide the 2020 income tax brackets.

Unmarried Individuals – Rate Schedule X (2020)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $9,875 $0 + 10% $0
9,875 40,125 987.50 + 12% 9,875
40,125 85,525 4,617.50 + 22% 40,125
85,525 163,300 14,605.50 + 24% 85,525
163,300 207,350 33,271.50 + 32% 163,300
207,350 518,400 47,367.50 + 35% 207,350
518,400 156,235.00 + 37% 518,400

Married Filing Jointly or Surviving Spouses – Rate Schedule Y-1 (2020)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $19,750 $0 + 10% $0
19,750 80,205 1,975.00 + 12% 19,750
80,205 171,050 9,235.00 + 22% 80,250
171,050 326,600 29,211.00 + 24% 171,050
326,600 414,700 66,543.00 + 32% 326,600
414,700 622,050 94,735.00 + 35% 414,700
622,050 167,307.50 + 37% 622,050

Married Filing Separately – Rate Schedule Y-2 (2020)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $9,875 $0 + 10% $0
9,875 40,125 987.50 + 12% 9,875
40,125 85,525 4,605.50 + 22% 40,125
85,525 163,300 14,605.50 + 24% 85,525
163,300 207,350 33,271.50 + 32% 163,300
207,350 311,025 47,367.50 + 35% 207,350
311,025 83,653.75 + 37% 311,025

Head of Household – Rate Schedule Z (2020)

Taxable income is over – But not over – The tax is: Of the amount over –
$0 $14,100 $0 + 10% $0
14,100 53,700 1,410.00 + 12% 14,100
53,700 85,500 6,162.00 + 22% 53,700
85,500 163,300 13,158.00 + 24% 85,500
163,300 207,300 31,830.00 + 32% 163,300
207,350 518,400 45,926.00 + 35% 207,350
518,400 154,793.50 + 37% 518,400

Example Calculation of Taxes Owed

Finally, we are going to provide an example demonstrating how to use these tax rate schedules to calculate federal income taxes owed. In this example, let’s assume the individual’s tax filing status is Unmarried, and taxable income is $100,000 in 2021.

Looking at the above tables we see that $100,000 for Unmarried Individuals means it’s necessary to use Rate Schedule X. This individual falls into the 24% tax bracket because $100,000 is between $86,375 and $164,925. Using the 24% row in the above table, it’s possible to calculate the federal income taxes owed as follows:

  • $14,751.00 + 24% x ($100,000 – $86,375)
  • $14,751.00 + 0.24 x $13,625
  • $14,751.00 + $3,270.00 = $18,021.00

In this example, a Single filer with $100,000 of taxable income in 2021 would owe $18,021.00 in federal income taxes.


About the Author – 2020 and 2021 Tax Brackets