NOVEMBER 6, 2019
The IRS released the federal tax rates and income brackets for 2020 on Wednesday. The seven tax rates remain unchanged, while the income limits have been adjusted for inflation.
Tax rates in the U.S. are marginal, meaning that different levels of the same person’s income are taxed at different rates. If you earn $80,000 in 2020 and are married filing jointly, for example, the first $19,750 of that will be taxed at 10%, and the income over $19,750 will be taxed at 12%.
The 2020 tax brackets affect the taxes that will be filed in 2021. These are the 2019 brackets.
Here are the new brackets for 2020, depending on your taxable income and filing status:
For married individuals filing jointly:
- 10%: Up to $19,750
- 12%: Income between $19,750 to $80,250
- 22%: Income between $80,250 to $171,050
- 24%: Income between $171,050 to $326,600
- 32%: Income between $326,600 to $414,700
- 35%: Income between $414,700 to $622,050
- 37%: Income over $622,050
For unmarried individuals:
- 10%: Up to $9,875
- 12%: Income between $9,875 to $40,125
- 22%: Income between $40,125 to $85,525
- 24%: Income between $85,525 to $163,300
- 32% Income between $163,300 to $207,350
- 35%: Income between $207,350 to $518,400
- 37%: Income over $518,400
For heads of households:
- 10%: Up to $14,100
- 12%: Income between $14,100 to $53,700
- 22%: Income between $53,700 to $85,500
- 24%: Income between $85,500 to $163,300
- 32%: Income between $163,300 to $207,350
- 35%: Income between $207,350 to $518,400
- 37%: Income over $518,400
For married individuals filing separately:
- 10%: Up to $9,875
- 12%: Income between $9,875 to $40,125
- 22%: Income between $40,125 to $85,525
- 24%: Income between $85,525 to $163,300
- 32%: Income between $163,300 to $207,350
- 35% Income between $207,350 to $311,025
- 37%: Income over $311,025
These are the rates and income brackets for federal taxes. Your state may have different brackets, no taxes at all or a flat rate.
Courtesy/Source: CNBC
