![]() However, with the Tax Cuts and Jobs Act of 2017, the IRS now employs the Chained Consumer Price Index (C-CPI) to adjust federal tax brackets. These tax brackets are for 2020 tax returns, which are filed in 2021. Until 2018 the IRS applied the Consumer Price Index (CPI) to measure inflation. 2021 tax year rates and tables Tax rate calculator Quick links Help us blaze a better trail Get Help Address Contact and Follow Us About . 2020 Federal Income Tax Brackets On November 6, 2019, the IRS issued Revenue Procedure 2019-44, which provided the 2020 income tax brackets below. Updating tax brackets helps avoid a so-called bracket creep, a situation when someone falls in a higher income tax bracket due to inflation. ![]() Since real incomes change with the overall price level, the Internal Revenue Service (IRS) adjusts US income tax brackets year by year. Your Business and Individual Tax Rates for 2020 Married Filing Jointly (MFJ), Single 10, Up to 19,750, Up to 9,875 12, 19,751 80,250, 9,876. Progressive taxation aims at reducing income inequality since people with lower incomes pay less tax. The structure of the US tax brackets conforms to the progressive tax system, which ensures that all taxpayers pay the same rates on the same levels of taxable income. The 2020 Income Tax Brackets Rate, Single, Married Filing Jointly 10, Up to 9,875, Up to 19,750 12, 9,876 to 40,125, 19,751 to 80,250. The tax rates are applied to different income ranges, which form the so-called federal tax brackets. On this page you will see Individuals’ tax table, as well as the Tax Rebates and Tax Thresholds scroll down. The federal government imposes the federal income tax for individuals in the United States and determines different tax rates depending on the income earned in a given year.
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