The IRS has just released the 2020 income tax brackets but we’ll break it down below into easier to digest sections.
The federal tax rates themselves stay the same as last year but the income limits have changed to adjust for inflation. This means that these updated rates will affect the taxes you pay on the income you earn in 2020, when you file in 2021.
See Also: How to handle Your Tax Refund
If you’re a freelancer or a gig worker, then it would be helpful to know ahead of time what income bracket you’ll fall in since you’ll be paying the estimated taxes throughout the year. Here’s how the new tax brackets break down.
Single Filers
10% for incomes up to $9,875
12% for incomes over $9,875 and up to $40,125
22% for incomes over $40,125 and up to $85,525
24% for incomes over $85,525 and up to $163,300
32% for income over $163,300 and up to $207,350
35% for incomes over $207,350 and up to $518,400
37% for incomes over $518,400
Married Couples Filing Jointly
10% for incomes up to $19,750
12% for incomes over $19,750 and up to $80,250
22% for incomes over $80,250 and up to $171,050
24% for incomes over $171,050 and up to $326,600
32% for incomes over $326,600 and up to $414,700
35% for incomes over $414,700 and up to $622,050
37% for incomes over $622,050
Married Individuals Filing Separately
10% for incomes up to $9,875
12% for incomes over $9,875 and up to $40,125
22% for incomes over $40,125 and up to $85,525
24% for incomes over $85,525 and up to $163,300
32% for incomes over $163,300 and up to $207,350
35% for incomes over $207,350 and up to $311,025
37% for incomes over $311,025
Heads of Households
10% for incomes up to $14,100
12% for incomes over $14,100 and up to $53,700
22% for incomes over $53,700 and up to $85,500
24% for incomes over $85,500 and up to $163,300
32% for incomes over $163,300 and up to $207,350
35% for incomes over $207,350 and up to $518,400
37% for incomes over $518,400
