The Internal Revenue Service released its breakdown on Monday of marginal income tax rates for 2021, reflecting inflation adjustments that will be applied when filing 2021 returns in 2022.
U.S. taxpayers fall into one of seven income tax brackets, ranging from 10% to 37%. For 2021:
Meanwhile, the IRS has also increased the standard deduction for 2021,CNBC reported.
The flat dollar amount that reduces the amount of your income that’s subject to tax will increase to $12,550 for single taxpayers and $25,100 for married couples to account for inflation, representing a $150 increase for individuals and $300 increase for married couples.
According to CNBC, heads of household will also see a $150 bump in their standard deduction to $18,800.