American Tax Service

Helping Americans File Their Taxes

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Current Federal Income Tax Brackets Chart

Every year, the Federal tax brackets chart tends to change. With the new changes to the tax code, under the Tax Cuts and Jobs Act (TCJA), it’s more important than ever to determine which Federal tax bracket you fall into. It could influence how much you pay by thousands of dollars.

Learn what the current Federal tax brackets are and how they work.

IRS Federal Income Brackets Chart

Here are the new tax brackets and rates organized by filing status:

Tax Brackets Single

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount over $163,300
$207,351 – $518,400 $47,367.50 + 35% of the amount over $207,350
$207,351 – $518,400 $156,235 + 37% of the amount over $518,400

 

Tax Brackets Married Filing Jointly or Qualifying Widow(er)

Taxable Income Tax Rate
$0 – $19,750 10% of taxable income
$19,751 – $80,250 $1,975 + 12% of the amount over $19,750
$80,251 – $171,050 $9,235 + 22% of the amount over $80,250
$171,051 – $326,600 $29,211 + 24% of the amount over $171,050
$326,601 – $414,700 $66,543 + 32% of the amount over $326,600
$414,701 – $622,050 $94,735 + 35% of the amount over $414,700
$622,051 or more $167,307.50 + 37% of the amount over $622,050

 

Tax Brackets Married Filing Separately

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount of $163,300
$207,351 – $311,025 $83,653.75 + 37% of the amount over $311,025
$311,026 or more $83,653.75 + 37% of the amount over $311,025

 

Head of Household

Taxable Income Tax Rate
$0 – $14,100 10% of taxable income
$14,101 – $53,700 $1,410 + 12% of the amount over $14,100
$53,701 – $85,500 $6,162 + 22% of the amount over $53,700
$85,501 – $163,300 $13,158 + 24% of the amount over $85,500
$163,301 – $207,350 $31,830 + 32% of the amount over $163,300
$207,351 – $518,400 $45,926 + 35% of the amount over $207,350
$518,401 or more $154,793.50 + 37% of the amount over $518,400

Try the tax bracket calculator and see what your tax bracket will be.Try the Free Tax Brackets Calculator

Knowing which tax bracket you are in can help you make better financial decisions. Use our current Tax Bracket Calculator to estimate your 2020 taxable income (for taxes filed in 2021). All you have to do is enter your filing status and annual taxable income to determine your tax bracket.

How to Pay Less Taxes

The first answer is to earn less, but that’s not a good idea for most people. To legally qualify for a lower tax bracket, you need to reduce your taxable income. The way to do this is to claim every tax deduction and credit you possibly can.

The tax deductions you’re eligible for depends on whether you’re self-employed or a salaried employee. It also depends on whether you itemize your deductions, or you take the standard deduction, which is open to everyone.

The trick is only to itemize if you can get a bigger deduction.

Fewer people are itemizing because the standard deduction was doubled.

For 2018, single filers and married filers filing separately were entitled to take a $12,000 standard deduction. Married filers deciding to file jointly were entitled to $24,000. Heads of household could claim $18,000.

In 2019, these numbers have gone up slightly, with an extra $200 for individuals, $400 for married couples filing jointly, and heads of household seeing a $350 increase.

What if I Choose to Itemize?

There are a few common deductions you might decide to take if you’re itemizing. But you need to make sure you qualify for them, so speak to a professional before you add them to your tax return. The last thing you want is to get audited.

Some of the deductions you can take involve:

  • Interest on your mortgage.
  • Contributions to retirement plans, such as an IRA.
  • A donation to a charity.
  • Deductions for state and local taxes. These typically only apply to citizens living in high tax states.
  • Business expenses.

What About Tax Credits?

Tax credits are the holy grail of the tax code because they reduce your income tax liability, rather than reducing your taxable income. Everything is refunded on a dollar-for-dollar basis.

There are both State and Federal tax credits you should consider, including:

It may be a boring subject, but it’s wise to understand what the different Federal income tax brackets are and how to claim every tax credit and deduction you can. In the long-term, this could lead to thousands of dollars in your bank account.