We’re a month and a half away from the opening of tax season for tax year 2019, but the Internal Revenue Service is a year ahead of us.
The federal agency recently released the tax brackets for tax year 2020. These rates won’t be used until you file in 2021, but notably the brackets include higher income limits on tax brackets to account for inflation. The rates were released as follows:
Tax Brackets For Tax Year 2020
- 10%: Up to $9,875
- 12%: Income of $9,876 to $40,125
- 22%: Income of $40,126 to $85,525
- 24%: Income of $85,526 to $163,300
- 32%: Income of $163,301 to $207,350
- 35%: Income of $207,351 to $518,400
- 37%: Income over $518,400
- 10%: Up to $19,750
- 12%: Income of $19,751 to $80,250
- 22%: Income of $80,251 to $171,050
- 24%: Income of $171,051 to $326,600
- 32%: Income of $326,601 to $414,700
- 35%: Income of $414,701 to $622,050
- 37%: Income over $622,050
Married, filing separately:
- 10%: Up to $9,875
- 12%: Income of $9,876 to $40,125
- 22%: Income of $40,126 to $85,525
- 24%: Income of $85,526 to $163,300
- 32%: Income of $163,301 to $207,350
- 35%: Income of $207,351 to $311,025
- 37%: Income over $311,025
- 10%: Up to $14,100
- 12%: Income of $14,101 to $53,700
- 22%: Income of $53,701 to $85,500
- 24%: Income of $85,501 to $163,300
- 32%: Income of $163,301 to $207,350
- 35%: Income of $207,351 to $518,400
- 37%: Income over $518,400
The changes made by the IRS earlier this month are available here.
