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Look up your 2021 tax bracket, deductions, exemptions, retirement limits, HSAs, payroll tax, and more.

Tax strategies

Your Business and Individual Tax Rates for 2021

  • 1/1/2021

The IRS announced the 2021 tax rates, which went into effect on January 1. Look up the key individual and businesses federal tax rates and limits for 2021 in the tables below or download our print-friendly tax guide.

Reference this information as you prepare for and make decisions throughout the year.

Filing Rates
Individual Tax Rate Filing Status
Married Filing Jointly (MFJ) Single Married Filing Separately Head of Household
10% Up to $19,900 Up to $9,950 Up to $9,950 Up to $14,200
12% $19,901 – $81,050 $9,951 – $40,525 $9,951 – $40,525 $14,201 – $54,200
22% $81,051 – $172,750 $40,526 – $86,375 $40,526 – $86,375 $54,201 – $86,350
24% $172,751 – $329,850 $86,376 – $164,925 $86,376 – $164,925 $86,351 – $164,900
32% $329,851 – $418,850 $164,926 – $209,425 $164,926 – $209,425 $164,901 – $209,400
35% $418,851 – $628,300 $209,426 – $523,600 $209,426 – $314,150 $209,401 – $523,600
37% More than $628,300 More than $523,600 More than $314,150 More than $523,600
Standard Deduction
Standard deduction — single and married filing separately $12,550
Additional deduction age 65 or older — single $1,700
Standard deduction — married filing jointly $25,100
Additional deduction age 65 or older — married filing jointly and married filing separately $1,350
Standard deduction — head of household $18,800
Additional deduction age 65 or older — head of household $1,700

Note: The personal exemption was suspended by the Tax Cuts and Jobs Act of 2017 for the tax years 2018 to 2025.

Retirement Plans
Maximum annual benefit for defined benefit plan Up to $230,000
Defined contribution annual addition $58,000
Defined contribution compensation limit $290,000
401(k) maximum exclusion $19,500
401(k) catch-up contribution (for individuals 50 or older) $6,500
SIMPLE contribution limit $13,500
SIMPLE catch-up contribution (for individuals 50 or older) $3,000
IRA contribution limitation (in general) $6,000
IRA catch-up contribution (for individuals 50 or older) $1,000
Payroll Taxes
Social Security (self-employed) combined rate (OASDI + Medicare) (6.2% + 1.45%) x 2 = 15.3%
Social Security (employee) rate (OASDI + Medicare) (6.2% + 1.45%) = 7.65%
OASDI contribution base $142,800
Medicare contribution base Unlimited
Additional Medicare payroll tax on earnings more than $200,000 (single) and $250,000 (combined, married filing jointly) 0.9%
FUTA wage base $7,000
FUTA rate 6%
Social Security
Maximum earned income while receiving Social Security  Under full retirement age $18,960
In the year you reach full retirement age $50,520
Full retirement age No limit
Education Phase-Outs
American Opportunity Credit (formerly Hope Credit) MFJ: $160,000 – $180,000
Other filers: $80,000 – $90,000
Lifetime Learning Credit MFJ: $119,000 – $139,000
Other filers: $59,000 – $69,000
Student loan interest deduction MFJ: $140,000 – $170,000
Single: $70,000 – $85,000
Health Savings Accounts
HSA contribution limit (single insurance coverage) $3,600
HSA contribution limit (family insurance coverage) $7,200
HSA catch-up contribution (age 55 or older) $1,000
179 Limitation, Gift and Estate Tax Exclusions, and Kiddie Tax
Section 179 limitation $1,050,000
Annual gift tax exclusion $15,000
Estate tax exclusion amount $11,700,000
Kiddie tax base amount $1,100
 
Travel
High cost per diem travel rate within continental United States (high/low method) $292
Low cost per diem travel rate within continental United States (high/low method) $198

Mileage Rates
Business $0.56
Medical/Moving $0.16
Charitable $0.14
View the tax rates from previous years:

 

How we can help

As your needs evolve, contact your advisor at each step to see how these rates might apply to your business, estate, or personal situation.