2021 Federal Income Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households
| Rate | For Unmarried Individuals | For Married Individuals Filing Joint Returns | For Heads of Households |
|---|---|---|---|
| 10% | Up to $9,950 | Up to $19,900 | Up 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 $523,600 | Over $628,300 | Over $523,600 |
2021 Standard Deduction
| Filing Status | Deduction Amount |
|---|---|
| Single | $12,550 |
| 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 Children | One Child | Two Children | Three or More Children | |
|---|---|---|---|---|---|
| Single or Head of Household | Income 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 Jointly | Income 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 Over | For Married Individuals Filing Joint Returns, Taxable Capital Gains Over | For Heads of Households, Taxable Capital Gains Over | |
|---|---|---|---|
| 0% | $0 | $0 | $0 |
| 15% | $40,400 | $80,800 | $54,100 |
| 20% | $445,850 | $501,600 | $473,750 |
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 Status | Threshold |
|---|---|
| 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.