U.S. Federal Income Tax Brackets

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U.S. Federal Income Tax Brackets

Although tax deadlines are once a year, taxes are paid year-round. The U.S. Federal Tax brackets for the current year (2021) and previous few years are listed below. This article also covers some frequently asked questions relating to U.S. taxes. If you’re in doubt when it comes to filing your U.S. Federal or state income taxes, seek the services of an accredited accounting professional.

How does Federal Income Tax work in the United States?

Citizens and residents of the United States are subject to having Federal taxes levied on their worldwide net income. Should such individuals reside overseas, they may be able to obtain credits or exemptions for their local, state or Federal tax liabilities if dual taxation agreements exist with their current non-U.S. country of residence and the United States.

Income is taxed as a varying percentage based on total income. Here are a couple examples:

Example 1 – An individual with a ‘Married’, filing status with an income of $9,000 in 2020 would have the following Federal Tax rates applied to their income:
Bracket 1: 10% of $9,000 = $900.
The individual in this example would have a Federal Tax liability of $900.

Example 2 – An individual with a ‘Single’, or unmarried, filing status with an income of $30,000 in 2020 would have the following Federal Tax rates applied to their income:
Bracket 1: 10% of $9,875 = $985.
Bracket 2: 12% of $30,000 minus $9,875 = $2,415
Thus, for this individual the total Federal Tax due would be $985 + $2,415 = $3,400.

Bear in mind this calculation does not include any credits, deductions, refunds, fines or fees that this individual may be subject to.

Why do Federal tax brackets change?

Each year, the tax bracket thresholds are adjusted based on inflation. The tax rates have remained unchanged since they were updated in 2018 by the Trump Administration. Tax rates can change depending on the decisions of the U.S. government to increase or decrease Federal taxes on people with income falling within any band.

What’s the significance of the Filing Status?

Married couples can file a single consolidated return reporting both their combined incomes. As can be seen from the tax brackets below, depending on the income of each partner, couples reporting jointly may have advantages over filing separately when married. An individual may qualify to submit a tax return as a ‘Head of Household’ if they meet the current IRS criteria. When in doubt, seek the advice of a certified U.S. tax accountant.

How can I calculate my Federal Income taxes?

If you want to get an estimate on tax liabilities for the current tax year, you can visit the U.S. Federal Income Tax Calculator. For a more exact break-downs of when you can expect to pay, you can use tax preparation and filing software or use an accountant.

Why should I file my taxes on time?

Tax returns should be submitted online or by post by the IRS imposed deadlines. Many U.S. state governments also require tax returns to be submitted on the same date as the IRS deadline. Interest, fees and fines may be applied to taxes owed if your Federal or state taxes are not paid before the deadlines. You can apply for an extension for late-filing your tax returns based on a number of factors. Several U.S. states offer automatic extensions, yet you should check your local state government website to confirm if extensions are possible. However, in order to avoid paying interest you should pay off tax liabilities even when applying for an extension or taking advantage of grace periods offered by state or local tax authorities.

Federal Income Tax Bracket for 2021

Filing deadline April 15, 2022
SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 – $9,950$0 – $19,900$0 – $9,950$0 – $14,200
12%$9,951 – $40,525$19,901 – $81,050$9,951 – $40,525$14,201 – $54,200
22%$40,526 – $86,375$81,051 – $172,750$40,526 – $86,375$54,201 – $86,350
24%$86,376 – $164,925$172,751 – $329,850$86,376 – $164,925$86,351 – $164,900
32%$164,926 – $209,425$329,851 – $418,850$164,926 – $209,425$164,901 – $209,400
35%$209,426 – $523,600$418,851 – $628,300$209,426 – $314,150$209,401 – $523,600
37%$523,600+$628,300+$314,150+$523,600+

Federal Income Tax Bracket for 2020

Filing deadline April 15, 2021
SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 – $9,875$0 – $19,750$0 – $9,875$0 – $14,100
12%$9,876 – $40,125$19,751 – $80,250$9,876 – $40,125$14,101 – $53,700
22%$40,126 – $85,525$80,251 – $171,050$40,126 – $85,525$53,701 – $85,500
24%$85,526 – $163,300$171,051 – $326,600$85,526 – $163,300$85,501 – $163,300
32%$163,301 – $207,350$326,601 – $414,700$163,301 – $207,350$163,301 – $207,350
35%$207,351 – $518,400$414,701 – $622,050$207,351 – $518,400$207,351 – $518,400
37%$518,401+$622,051+$518,401+$518,401+

Federal Income Tax Bracket for 2019

Filing deadline July 15, 2020
SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 – $9,700$0 – $19,400$0 – $9,700$0 – $13,850
12%$9,701 – $39,475$19,400 – $78,950$9,701 – $39,475$13,851 – $52,850
22%$39,476 – $84,200$78,951 – $168,400$39,476 – $84,200$52,851 – $84,200
24%$84,201 – $160,725$168,401 – $321,450$84,201 – $160,725$84,201 – $160,700
32%$160,726 – $204,100$321,451 – $408,200$160,726 – $204,100$160,701 – $204,100
35%$204,101 – $510,300$408,201 – $612,350$204,101 – $510,300$204,101 – $510,300
37%$510,301+$612,351+$510,301+$510,301+

Federal Income Tax Bracket for 2018

Filing deadline April 15, 2019
SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 – $9,525$0 – $19,050$0 – $9,525$0 – $13,600
12%$9,526 – $38,700$19,051 – $77,400$9,526 – $38,700$13,601 – $51,800
22%$38,701 – $82,500$77,401 – $165,000$38,701 – $82,500$51,801 – $82,500
24%$82,501 – $157,500$165,001 – $315,000$82,501 – $157,500$82,501 – $157,500
32%$157,501 – $200,000$315,001 – $400,000$157,501 – $200,000$157,501 – $200,000
35%$200,001 – $500,000$400,001 – $600,000$200,001 – $300,000$200,001 – $500,000
37%$500,000+$600,000+$300,000+$500,000+

Federal Income Tax Bracket for 2017

Filing deadline April 15, 2018
SingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 – $9,325$0 – 18,650$0 – $9,325$0 – $13,350
15%$9,326 – $37,950$18,651 – $75,900$9,326 – $37,950$13,351 – $50,800
25%$37,951 – $91,900$75,901 – $153,100$37,951 – $76,550$50,801 – $131,200
28%$91,901 – $191,650$153,101 – $233,350$76,551 – $116,675$131,201 – $212,500
33%$191,651 – $416,700$233,351 – $416,700$116,676 – $208,350$212,501 – $416,700
35%$416,701 – $418,400$416,701 – $470,700$208,351 – $235,350$416,701 – $444,500
39.6%$418,400+$470,700+$235,350+$444,500+