Indexed Tax Tables for 2021
The federal tables below include the values applicable when determining federal taxes for 2021. They are published in Revenue Procedure 2020-45.
Federal Income Tax Schedules
Schedule X: Single Individuals
| Taxable Income* | Tax | % on Excess |
|---|---|---|
| $0 | $0 | 10 |
| 9,950 | 995 | 12 |
| 40,525 | 4,664 | 22 |
| 86,375 | 14,751 | 24 |
| 164,925 | 33,603 | 32 |
| 209,425 | 47,843 | 35 |
| 523,600 | 156,804.25 | 37 |
* Taxable income is equal to gross income minus deductions.
Example: Joan Smith, a single individual, has gross income of $102,000 in 2021. She has no dependents and claims a standard deduction because she lacks sufficient itemized deductions. Her taxable income is $89,450: $102,000 - $12,550 standard deduction. Her tax is $15,489: $14,751 + .24 x ($89,450 - $86,375).
Schedule Y-1: Married Filing Jointly and Surviving Spouses
| Taxable Income* | Tax | % on Excess |
|---|---|---|
| $0 | $0 | 10 |
| 19,900 | 1,990 | 12 |
| 81,050 | 9,328 | 22 |
| 172,750 | 29,502 | 24 |
| 329,850 | 67,206 | 32 |
| 418,850 | 95,686 | 35 |
| 628,300 | 168,993.50 | 37 |
* Taxable income is equal to gross income minus deductions.
Example: John and Joan Smith, a married couple who file jointly, have gross income of $200,000 in 2021. They claim a standard deduction because they lack sufficient itemized deductions. Their taxable income is $174,900: $200,000 - $25,100 standard deduction. Their tax is $31,652: $29,502 + .24 x ($174,900 - $172,750).
Schedule Y-2: Married Individuals Filing Separately
| Taxable Income* | Tax | % on Excess |
|---|---|---|
| $0 | $0 | 10 |
| 9,950 | 995 | 12 |
| 40,525 | 4,664 | 22 |
| 86,375 | 14,751 | 24 |
| 164,925 | 33,603 | 32 |
| 209,425 | 47,843 | 35 |
| 314,150 | 83,653.75 | 37 |
* Taxable income is equal to gross income minus deductions.
Example: Joan Smith, who is married and files separately from her husband, has gross income of $102,000 in 2021. She has no dependents and claims a standard deduction because she lacks sufficient itemized deductions. Her taxable income is $89,450: $102,000 - $12,550 standard deduction. Her tax is $15,489: $14,751 + .24 x ($89,450 - $86,375).
Schedule Z: Heads of Households
| Taxable Income* | Tax | % on Excess |
|---|---|---|
| $0 | $0 | 10 |
| 14,200 | 1,420 | 12 |
| 54,200 | 6,220 | 22 |
| 86,350 | 13,293 | 24 |
| 164,900 | 32,145 | 32 |
| 209,400 | 46,385 | 35 |
| 523,600 | 156,355 | 37 |
* Taxable income is equal to gross income minus deductions.
Example: Joan Smith, who files as a head of household, has gross income of $102,000 in 2021. She has no dependents and claims a standard deduction because she lacks sufficient itemized deductions. Her taxable income is $81,200: $102,000 - $18,800 standard deduction. Her tax is $12,160: $6,220 + .22 x ($81,200 - $54,200).
Federal Income Tax Table: Estates and Trusts
| Taxable Income* | Tax | % on Excess |
|---|---|---|
| 0 | $0 | 10 |
| 2,650 | 265 | 24 |
| 9,550 | 1,921 | 35 |
| 13,050 | 3,146 | 37 |
* Taxable income is equal to gross income minus deductions.
Federal Income Tax Table: Estates and Trusts
January 1, 2021 - December 31, 2021
| Seller Had Owned the Asset for 1 Year or More | Taxpayer Filing Status | |||
|---|---|---|---|---|
| Single | Married Filing Jointly | Head of Household | Married Filing Separately | |
| 0% rate | <$40,400 | <$80,800 | <$54,100 | <$40,400 |
| 15% rate | $40,400-$445,850 | $80,000-$501,600 | $54,100 -$473,750 | $40,400-$250,800 |
| 20% rate (a) | >$445,850 | >$501,600 | >$473,750 | >$250,800 |
| Seller Had Owned the Asset for Less than 1 Year | Seller pays same tax rate as on earned income. | |||
Note: The rate is 28% for long-term gains from sales of art works and other collectibles.
(a) Tax on capital gain will include the 3.8% net investment income tax when the seller;s MAGI exceeds the applicable threshold. This tax is likely to apply to sellers in the 20% capital gain tax bracket, which would increase their effective rate to 23.8%.
Standard Deduction
| Married filing jointly and surviving spouses | Married filing separately | Head of household | Single |
|---|---|---|---|
| $25,100 | $12,550 | $18,800 | $12,550 |
Single filers age 65 or older who are not surviving spouses may increase their standard deduction by $1,700 and married filing jointly filers may increase their standard deduction by $1,350 for each spouse age 65 or older. The same increases are available for filers who are legally blind.
Unified Gift and Estate Tax Credit
| Amount of Credit | Amount of Exemption Equivalent |
|---|---|
| 4,625,800 | 11,700,000 |
Annual Gift Tax Exclusion
The federal annual gift tax exclusion equals $10,000 per person, indexed from 1998 and rounded down to the nearest $1,000. For 2021, the annual gift tax exclusion is $15,000.
Generation Skipping Tax Lifetime Exemption
The generation skipping tax lifetime exemption for 2021 is $11,700,000.
