2021 Federal Income Tax Brackets and Rates
In 2021, the income limits for all tax brackets and 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.
2021 Federal Income Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households
| Rate | For Single 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% | $523,601 or more | $628,301 or more | $523,601 or more |
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.
2021 Earned Income Tax Credit Parameters
| 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 |