The IRS has released updated tax brackets for the 2021 filing season, these rates will be used to prepare your 2022 tax returns. The new brackets have been adjusted to account for inflation.

Taxpayers are divided into one of seven brackets ranging from 10% to 37% and those rates will be the same in 2021.

Single Filers

37% for incomes over $523,600 

35% for incomes over $209,425

32% for incomes over $164,925

24% for incomes over $86,375

22% for incomes over $40,525 

12% for incomes over $9,950 

10% for incomes of $9,950 or less 

Married couples filing jointly

37% for incomes over $628,300 

35% for incomes over $418,850 

32% for incomes over $329,850

24% for incomes over $172,750

22% for incomes over $81,050

12% for inccomes over $19,900 

10% for incomes of $19,900 or less 

Married couples filing separately

37% for incomes over $523,600 

35% for incomes over $209,425

32% for incomes over $164,925

24% for incomes over $86,375

22% for incomes over $40,525 

12% for incomes over $9,950 

10% for incomes of $9,950 or less 

The IRS has also increased the standard deduction — a flat dollar amount that reduces the amount of your income that’s subject to taxes — for 2021. For individuals and married couples filing separately, the deduction rose to $12,550, up $150 from this year. For married couples filing jointly, the deduction jumped to $25,100, an increase of $300.

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