facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
What Is My Tax Bracket for the 2021 Tax Year? Thumbnail

What Is My Tax Bracket for the 2021 Tax Year?

It's never too early to start looking at your tax obligations for the coming tax season. With COVID-19 impacting many Americans through 2021, it's possible your income and deductions may have changed. The information in this article is for the 2021 tax year, which most taxpayers will file in 2022.

The seven 2020 tax rates themselves didn't change (they are the same as those in effect for the 2020 tax year), however, the tax bracket ranges were modified based on inflation. Because of this, it's possible you could be in a different tax bracket for 2021 than the last time you reported your taxes, even if your income has not changed.1

Reminder: Tax Brackets Are Marginal

The IRS divides income into different tax rates. Each subsequent portion of your income will have an increased tax rate. For example, if you are a single filer who made $40,125 in 2020, your first $9,950 will be taxed at 10 percent. The next portion of your income will be taxed at an increased rate; from $9,951 to $40,525, your tax rate will be 12 percent. 

As your income increases, you’ll fall into higher tax brackets and will have a higher tax rate for each portion of your income. 

Why Would My Tax Bracket Be Different? 

The IRS regularly adjusts tax brackets to take inflation into consideration. This is because, with inflation, people will face higher prices, meaning the purchasing power of their dollar is decreased. Knowing this, the IRS adjusts brackets in order to avoid bracket creep, a circumstance that occurs when inflation pushes your income into a higher tax bracket, or credits and deductions are reduced. In this scenario, an individual may not actually have increased purchasing power or greater disposable income, even with an increase in wages and salaries.2

2021 Tax Brackets 

Without further ado, here are the 2021 tax brackets according to your filing status and income from the IRS.1

10% Tax Rate

  • Single Individuals: from $0 to $9,950
  • Married Individuals Filing Jointly: from $0 to $19,900
  • Heads of Households: from $0 to $14,200
  • Married Individuals Filing Separately: from $0 to $9,950

12% Tax Rate

  • Single Individuals: from $9,951 to $40,525 
  • Married Individuals Filing Jointly: from $19,901 to $81,050    
  • Heads of Households: from $14,201 to $54,200
  • Married Individuals Filing Separately: from $9,951 to $40,525

22% Tax Rate

  • Single Individuals: from $40,526 to $86,375   
  • Married Individuals Filing Jointly: from $81,051 to $172,750       
  • Heads of Households: from $54,201 to $86,350
  • Married Individuals Filing Separately: from $40,526 to $86,375

24% Tax Rate

  • Single Individuals: from $86,376 to $164,925        
  • Married Individuals Filing Jointly: from $172,751 to $329,850   
  • Heads of Households: from $86,351 to $164,900
  • Married Individuals Filing Separately: from $86,376 to $164,925

32% Tax Rate

  • Single Individuals: from $164,926 to $209,425    
  • Married Individuals Filing Jointly: from $329,851 to $418,850        
  • Heads of Households: from $164,901 to $209,400
  • Married Individuals Filing Separately: from $164,926 to $209,425

35% Tax Rate

  • Single Individuals: $209,426 to $523,600
  • Married Individuals Filing Jointly: from $418,851 to $628,300
  • Heads of Households: from $209,401 to $523,600
  • Married Individuals Filing Separately: from $209,426 to $314,150

37% Tax Rate

  • Single Individuals: over $523,600    
  • Married Individuals Filing Jointly: over $628,300    
  • Heads of Households: over $523,600
  • Married Individuals Filing Separately: over $314,150

In addition to the tax inflation adjustments, the IRS also altered standard deductions. While the above rates and brackets are at the federal level, different states might have varying brackets and rates. 

Spiritual Application

Taxes and Spirituality - what in the world could those have to do with each other? The answer is surprisingly simple. Whether you agree with the idea of taxes or not, we are instructed to obey the laws of the land as it relates to paying taxes. Romans 13:7(NLT) states, "Pay your taxes and government fees to those who collect them, and give respect and honor to those who are in authority." The wording in this passage is important. It says we are to pay respect and honor to the office that is held by those in authority. Part of paying respect and honor is acting in obedience. What it is not saying is that we always have to like or agree with the policy that is in force. In fact, we should be holding those in authority accountable for their actions. And making our voices heard if we don't like something is an important of enacting positive change. 

The most important spiritual part of paying taxes is not the dollar amount of taxes that we pay, but that we are acting in respect and honor towards our leaders. Have you ever disagreed with something a boss or parent has asked you to do, but you did it anyway? This is an act of respect and honor to our leaders and is pleasing to them. Furthermore, God is pleased when we obey the laws of our land, even if we don't always like or agree with them. This allows us to be in a position to receive His blessing in our lives, even if it feels contradictory to our mind. And having a flow of God's blessings in our lives will yield a far better return than any investment on this earth could ever generate. 

Evergreen Financial Group is a Fee-Only Financial Planning and Investment Firm located in Billings, MT serving clients in Montana, Wyoming and virtually across the country. Evergreen Financial Group specializes in working with Christian families, including young professionals, Current and Future Retirees and Church Staff Members. 


  1. https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021
  2. https://www.aier.org/article/bracket-creep-a-real-problem-for-taxpayers/

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Evergreen Financial Group, LLC is a registered investment advisor offering advisory services in Montana and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision. All opinions and estimates constitute Evergreen Financial Group’s judgement as of the date of this communication and are subject to change without notice. Evergreen Financial Group does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall Evergreen Financial Group be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if Evergreen Financial Group or a Evergreen Financial Group authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.