Federal Income Tax Brackets

federal tax brackets

When planning for tax time, it helps to understand the marginal tax rates that apply at various income levels.

The federal tax rates defined in the Tax Cuts and Jobs Act of 2017 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction and tax brackets are updated each year with inflation.

These rates apply to all ordinary income, which includes wages, self-employment income, interest, non-qualified dividends, and short-term capital gains.

Standard Deduction

The standard deduction is an amount subtracted from total income to yield taxable income. Or as I like to think of it, the 0% tax bracket.

Filing StatusStandard Deduction
20192020
Single$12,200$12,400
Married filing jointly$24,400$24,800
Head of household$18,350$18,650

2020 Tax Brackets

Tax RateTaxable Income
2020SingleMarried
filing jointly
Married
filing separately
Head of
household
10%$0 to
$9,875
$0 to
$19,750
$0 to
$9,875
$0 to
$14,100
12%$9,875 to
$40,125
$19,750 to
$80,250
$9,875 to
$40,125
$14,100 to
$53,700
22%$40,125 to
$85,525
$80,250 to
$171,050
$40,125 to
$85,525
$53,700 to
$85,500
24%$85,525 to
$163,300
$171,050 to
$326,600
$85,525 to
$163,300
$85,500 to
$163,300
32%$163,300 to
$207,350
$326,600 to
$414,700
$163,300 to
$207,350
$163,300 to
$207,350
35%$207,350 to
$518,400
$414,700 to
$622,050
$207,350 to
$311,025
$207,350 to
$518,400
37%$518,400+$622,050+$311,025+$518,400+

2020 Tax Brackets for Incomes Up To $200,000

2019 Tax Brackets

Tax RateTaxable Income
2019SingleMarried
filing jointly
Married
filing separately
Head of
household
10%$0 to
$9,700
$0 to
$19,400
$0 to
$9,700
$0 to
$13,850
12%$9,700 to
$39,475
$19,400 to
$78,950
$9,700 to
$39,475
$13,850 to
$52,850
22%$39,475 to
$84,200
$78,950 to
$168,400
$39,475 to
$84,200
$52,850 to
$84,200
24%$84,200 to
$160,725
$168,400 to
$321,450
$84,200 to
$160,725
$84,200 to
$160,700
32%$160,725 to
$204,100
$321,450 to
$408,200
$160,725 to
$204,100
$160,700 to
$204,100
35%$204,100 to
$510,300
$408,200 to
$612,350
$204,100 to
$306,175
$204,100 to
$510,300
37%$510,300+$612,350+$306,175+$510,300+

Data sourced from IRS:

2019 tax brackets (pdf)
2020 tax brackets (pdf)



Submit a Comment

Your email address will not be published. Required fields are marked *