Current Tax Rates
Current rates information provided by Tax Foundation
2021 Tax Brackets
Income Tax Brackets and Rates
For 2021, income limits for all tax brackets as well as all filers will be adjusted for inflation and will be as follows…. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income of $523,600 and higher for single filers and $628,300 and higher for married couples filing jointly..(SEE Table 1)
As you review the brackets, the income ranges for each rate have been adjusted for inflation.
Table 1. Tax Brackets and Rates, 2021 (Source: IRS)
| Rate | Single Individuals – Taxable Income Over | Married Individuals Filing Joint Returns – Taxable Income Over | Heads of Households – Taxable Income Over |
|---|---|---|---|
| 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 |
Standard Deduction and Personal Exemption
Standard deductions for single filers has increased by $150; $300 for married couples filing jointly (SEE Table 2). The personal exemption for 2021 remains eliminated.
Table 2. 2021 Standard Deduction and Personal Exemption (Source: IRS)
| Filing Status | Deduction Amount |
|---|---|
| Single | $12,500 |
| Married Filing Jointly | $25,100 |
| Head of Household | $18,800 |
Alternative Minimum Tax
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).
Table 3. 2021 Alternative Minimum Tax Exemptions (Source:IRS)
| Filing Status | Exemption Amount |
|---|---|
| Unmarried Individuals | $73,600 |
| Married Filing Jointly | $114,600 |
In 2021, the 28 percent AMT rate applies to excess AMTI of $199,900 for all taxpayers ($99,950 for married couples filing separate returns).
AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2021, the exemption will start phasing out at $523,600 in AMTI for single filers and $1,047,200 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2021 Alternative Minimum Tax Exemption Phaseout Thresholds
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $523,600 |
| Married Filing Jointly | $1,047,200 |
How can I check on my tax refunds? Tax Related Web-sites/phone numbers: IRS www.irs.gov IRS Get Refund Status IRS Inquiry Phone: (800) 829-1040
Earned Income Tax Credit
Maximum Earned Income Tax Credit in 2021 for single and joint filers is $543, if the filer has no children (SEE Table 5). The maximum credit is $3,618 for one child, $5,980 for two children, and $6,728 for three or more children. These are small increases compared to 2020.
Table 5. 2021 Earned Income Tax Credit Parameters
| Filing Status | Single or Head of Household | No Children | One Child | Two Children | Three or More Children |
|---|---|---|---|---|---|
| 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 |
Qualified Business Income Deduction
The Tax Cuts and Jobs Act includes a 20 percent deduction for pass-through businesses against up to $163,300 of qualified business income for single taxpayers and $326,600 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2021 Qualified Business Income Deduction Thresholds (Source:IRS)
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $164,900 |
| Married Filing Jointly | $329,800 |
2022 Tax Brackets
Income Tax Brackets and Rates
2022 income limits for all tax brackets and all filers, adjusted for inflation. Seven federal income tax rates in 2022 are as follows: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The marginal income tax rate of 37 percent will only apply to taxpayers with taxable income above $539,900 (single filers), and $647,850 is the target for married couples filing jointly…(SEE Table 1)
Table 1. Tax Brackets and Rates, 2022 (Source: IRS)
| Rate | Single Individuals – Taxable Income Over | Married Individuals Filing Joint Returns – Taxable Income Over | Heads of Households – Taxable Income Over |
|---|---|---|---|
| 10% | Up to $10,275 | Up to $20,550 | Up to $14,650 |
| 12% | $10,275 to $41,775 | $20,550 to $83,550 | $14,650 to $55,900 |
| 22% | $41,775 to $89,075 | $83,550 to $178,150 | $55,900 to $89,050 |
| 24% | $89,075 to $170,050 | $178,150 to $340,100 | $89,050 to $170,050 |
| 32% | $170,050 to $215,950 | $340,100 to $431,900 | $170,050 to $215,950 |
| 35% | $215,950 to $539,900 | $431,900 to $647,850 | $215,950 to $539,900 |
| 37% | Over $539,900 | Over $647,850 | Over $539,900 |
Standard deductions for single filers has increased by $400; $800 for married couples filing jointly. The personal exemption for 2022 remains eliminated (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )
Table 2. 2022 Standard Deduction and Personal Exemption (Source: IRS)
| Filing Status | Deduction Amount |
|---|---|
| Single | $12,950 |
| Married Filing Jointly | $25,900 |
| Head of Household | $19,400 |
Alternative Minimum Tax
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).
Table 3. 2022 Alternative Minimum Tax Exemptions (Source:IRS)
| Filing Status | Exemption Amount |
|---|---|
| Unmarried Individuals | $75,900 |
| Married Filing Jointly | $118,100 |
In 2022, the 28% AMT rate applies to excess AMTI of $206,100 for all taxpayers ($103,050 for married couples filing separate returns).
AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2022, the exemption will start phasing out at $539,900 in AMTI for single filers and $1,079,800 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2022 Alternative Minimum Tax Exemption Phaseout Thresholds
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $539,900 |
| Married Filing Jointly | $1,079,800 |
Earned Income Tax Credit
The 2022 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $560 (no children) (SEE Table 5). The maximum credit is $3,733 for one child, $6,164 for two children, and $6,935 for three or more children. These are small increases compared to 2021.
Table 5. 2022 Earned Income Tax Credit Parameters
| Filing Status | Single or Head of Household | No Children | One Child | Two Children | Three or More Children |
|---|---|---|---|---|---|
| Income at Max Credit | $7,320 | $10,980 | $15,410 | $15,410 | |
| Maximum Credit | $560 | $3,733 | $6,164 | $6,935 | |
| Phaseout Begins | $9,160 | $20,130 | $20,130 | $20,130 | |
| Phaseout Ends (Credit Equals Zero) | $16,480 | $43,492 | $49,399 | $53,057 | |
| MARRIED FILING JOINTLY | |||||
| Income at Max Credit | $7,320 | $10,980 | $15,410 | $15,410 | |
| Maximum Credit | $560 | $3,733 | $6,164 | $6,935 | |
| Phaseout Begins | $15,920 | $26,260 | $26,260 | $26,260 | |
| Phaseout Ends (Credit Equals Zero) | $22,610 | $49,622 | $55,529 | $59,187 |
Qualified Business Income Deduction
The Tax Cuts and Jobs Act includes a 20 percent deduction in 2022 for pass-through businesses with $170,050 of qualified business income for single taxpayers and $340,100 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2022 Qualified Business Income Deduction Thresholds (Source:IRS)
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $164,900 |
| Married Filing Jointly | $329,800 |
Child Tax Credit
The maximum Child Tax Credit for 2022 is $2,000 per child who qualifies, and is not adjusted for inflation. The portion refundable for the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,500 in 2022.
2022 Annual Exclusion for Gifts
For 2022, the first $16,000 of gifts to any person is excluded from tax, up from $15,000 in 2021. This exclusion is increased to $164,000 from $159,000 for gifts to spouses who are not citizens of the United States.
2022 Capital Gains Tax Rates & Brackets (Long-term Capital Gains)
Capital Gains, long term, are taxed using different rates and brackets compared to standard income.
Table 7. 2022 Capital Gains Tax Rates & Brackets (Source:IRS)
| Unmarried Individuals – Taxable Income Over | Married Individuals Filing Joint Returns – Taxable Income Over | Heads of Households – Taxable Income Over | |
|---|---|---|---|
| 0% | Up to $0 | Up to $0 | Up to $0 |
| 15% | $41,675 | $83,350 | $55,800 |
| 20% | $459,750 | $517,200 | $488,5000 |
What our client say about us…
Best staff that know how to care for consumers and know how to get their job done properly.
Would give 6 star if I could. Kind, courteous and most professional from the moment we walked in.
I’ve visited applied office today … Their services are amazing.
This accountant was very thorough and took time explain why he needed certain documents as well as completely redoing all of our paperwork due to a 220.0O omission on my part
Latest News & Articles
California 2023 New Year Update: Equal Employment, Leaves, Privacy Protections, and Minimum WageDecember 26, 2022 - 3:14 pm- Income Tax Checklist for the 2022 Tax YearNovember 1, 2022 - 6:37 am
- End-of-Year Tax Tips for 2022October 28, 2022 - 8:50 am
- File ERTC – Get Your Refund NowOctober 28, 2022 - 6:31 am
- When are 2023 My Taxes Due?October 21, 2022 - 7:22 am
