Tax Rates For 2021

Most tax rates were reduced in 2018.  The 2021 tax rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Most of the changes in the legislation known as TCJA (Tax Cuts & Jobs Act) took effect in 2018 for federal tax returns filed in 2019, however individual taxpayers may still need to consider making adjustments.

Increased Standard Deduction 

The standard deduction is a dollar amount that reduces the amount of income on which you are taxed and varies according to your filing status. The standard deduction reduces the income subject to tax. The Tax Cuts and Jobs Act of 2018 nearly doubled standard deductions. 

For the 2022 tax season, the standard deduction amounts will be increased slightly as in previous years. The increased standard deduction will continue to allow more individuals to file without itemizing deductions on Schedule A. 


The 2021 standard deduction for each filing status is: 

Single...................................................................$12,550 .......(up from $6,350 in 2017)

Married filing jointly.........................................$25,100 .......(up from $12,700 in 2017)

Married filing separately .................................$12,550 .......(up from $6,350 in 2017)

Head of household.............................................$18,800 .......(up from $9,350 in 2017)

These amounts are indexed for inflation and therefore increase every year.  Additionally the amounts are higher if you or your spouse are blind or over age 65.  Most taxpayers have the choice of either taking a standard deduction or itemizing. 

Advance Child Tax Credit Payments in 2021

  •  Advance Child Tax Credit payments were early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return.  If the IRS has processed your 2020 tax return or 2019 tax return, these monthly payments were automatically issued starting in July and through December 2021, based on the information contained in that return, unless you opted out each month.
  • Note: Advance Child Tax Credit payment amounts are not based on the Credit for Other Dependents, which is not refundable. 
  • For more information about how your advance Child Tax Credit payments are calculated, see Topic D: Calculation of Advance Child Tax Credit Payments