2021 Federal Income Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households

RateFor Unmarried IndividualsFor Married Individuals Filing Joint ReturnsFor Heads of Households
10%Up to $9,950Up to $19,900Up to $14,200
12%$9,951 to $40,525$19,901 to $81,050$14,201 to $54,200
22%$40,526 to $86,375$81,051 to $172,750$54,201 to $86,350
24%$86,376 to $164,925$172,751 to $329,850$86,351 to $164,900
32%$164,926 to $209,425$329,851 to $418,850$164,901 to $209,400
35%$209,426 to $523,600$418,851 to $628,300$209,401 to $523,600
37%Over $523,600Over $628,300Over $523,600

2021 Standard Deduction

Filing StatusDeduction Amount
Married Filing Jointly$25,100
Head of Household$18,800

2021 Earned Income Tax Credit

The maximum Earned Income Tax Credit in 2021 for single and joint filers is $543, if the filer has no children. The maximum credit is $3,618 for one child, $5,980 for two children, and $6,728 for three or more children. All these are relatively small increases from 2020.

Filing Status No ChildrenOne ChildTwo ChildrenThree or More Children
Single or Head of HouseholdIncome at Max Credit$7,100$10,640$14,950$14,950
Maximum Credit$543$3,618$5,980$6,728
Phaseout Begins$8,880$19,520$19,520$19,520
Phaseout Ends (Credit Equals Zero)$15,980$42,158$47,915$51,464
Married Filing JointlyIncome at Max Credit$7,100$10,640$14,950$14,950
Maximum Credit$543$3,618$5,980$6,728
Phaseout Begins$14,820$25,470$25,470$25,470
Phaseout Ends (Credit Equals Zero)$21,920$48,108$53,865$57,414

2021 Child Tax Credit

The child tax credit totals at $2,000 per qualifying child and is not adjusted for inflation. However, the refundable portion of the Child Tax Credit is adjusted for inflation but will remain at $1,400 for 2021.

2021 Capital Gains Tax Rates & Brackets (Long-Term Capital Gains)

Long-term capital gains are taxed using different brackets and rates than ordinary income.

 For Unmarried Individuals, Taxable Capital Gains OverFor Married Individuals Filing Joint Returns, Taxable Capital Gains OverFor Heads of Households, Taxable Capital Gains Over

2021 Qualified Business Income Deduction (Sec. 199A)

The Tax Cuts and Jobs Act includes a 20 percent deduction for pass-through businesses against up to $164,900 of qualified business income for unmarried taxpayers and $329,800 for married taxpayers.

Filing StatusThreshold
Unmarried Individuals$164,900
Married Filing Jointly$329,800

2021 Annual Exclusion for Gifts

In 2021, the first $15,000 of gifts to any person are excluded from tax. The exclusion is increased to $159,000 for gifts to spouses who are not citizens of the United States.