The New 2020 Federal Income Tax Brackets & Rates
Why are tax brackets changing in 2020?
It all has to do with a provision in the tax code known as indexing. Each year, the IRS adjusts tax brackets to account for inflation.
The purpose of indexing is to eliminate what’s known as bracket creep. That’s where you get pushed into a higher tax bracket due to pay raises that do little more than match the rate of inflation. Indexing allows you to stay in the same tax bracket, despite a slightly higher income level.
Until 2017, indexing was based on changes in the Consumer Price Index (CPI). But beginning in the 2019 tax year, indexing will be based on the Chained Consumer Price Index (C-CPI). The change is part of the Tax Cuts and Jobs Act of 2017.
Federal income tax brackets and rates for 2020 are shown below. Indexing has increased the income brackets by roughly 2% across the board.
2020 Tax Brackets
Here are the 2020 tax brackets. They are the tax brackets for your income earned in 2020 (which will be filed on your 2020 tax return due on the tax deadline in 2021).
| Tax Rate | Single | Married Filing Joint | Married Filing Separate | Head of Household |
|---|---|---|---|---|
| 10% | Up to $9,875 | Up to $19,750 | Up to $9,875 | Up to $14,100 |
| 12% | $9,875 – $40,125 | $19,751 – $80,250 | $9,875 – $40,125 | $14,101 – $53,700 |
| 22% | $40,126 – $85,525 | $80,251 – $171,050 | $40,126 – $85,525 | $53,701 – $85,500 |
| 24% | $85,526 – $163,300 | $171,051 – $326,600 | $85,526 – $163,300 | $85,501 – $163,300 |
| 32% | $163,301 – $207,350 | $326,601 – $414,700 | $163,301 – $207,350 | $163,301 – $207,350 |
| 35% | $207,351 – $518,400 | $414,701 – $622,050 | $207,351 – $518,400 | $207,351 – $518,400 |
| 37% | Over $518,401 | Over $622,051 | Over $311,026 | Over $518,401 |
2020 Standard Deductions & Exemptions
| Filing Status | Deduction Amount |
|---|---|
| Single | $12,400 |
| Married Filing Separately | $12,400 |
| Married Filing Jointly | $24,800 |
| Head of Household | $18,650 |
| Qualifying Widow(er) | $24,800 |
Earned Income Credit Table for 2020 Income Limits & Maximum Amounts
See the earned income and adjusted gross income (AGI) limits
| Filing Status | No Qualifying Children | 1 Qualifying Child | 2 Qualifying Children | 3+ Qualifying Children |
|---|---|---|---|---|
| Single, Head of Household, or Widowed | $15,820 | $41,756 | $47,440 | $50,594 |
| Married Filing Jointly | $21,710 | $47,646 | $53,330 | $56,844 |
Maximum Credit Amounts
The EITC maximum credit amounts for 2020 are:
- $6,660 with three or more qualifying children
- $5,920 with two qualifying children
- $3,584 with one qualifying child
- $538 with no qualifying children.
2019 Tax Brackets
2019 Tax Brackets (IRS Federal Income Tax Rates)
Here are the 2019 tax brackets. They are the tax brackets for your income earned in 2019 (which will be filed on your 2019 tax return due on the tax deadline in 2020).
| Tax Rate | Single | Married Filing Joint | Married Filing Separate | Head of Household |
|---|---|---|---|---|
| 10% | Up to $9,700 | Up to $19,400 | Up to $9,700 | Up to $13,850 |
| 12% | $9,701-$39,475 | $19,401-$78,950 | $9,701-$39,475 | $13,851 -$52,850 |
| 22% | $39,476-$84,200 | $78,951-$168,400 | $39,476-$84,200 | $52,851-$84,200 |
| 24% | $84,201-$160,725 | $168,401-$321,450 | $84,201-$160,725 | $84,201-$160,700 |
| 32% | $160,726-$204,100 | $321,451-$408,200 | $160,726-$204,100 | $160,701-$204,100 |
| 35% | $204,101-$510,300 | $408,201-$612,350 | $204,101-$306,175 | $204,101-$510,300 |
| 37% | Over $510,301 | Over $612,351 | Over $306,176 | Over $510,301 |
2019 Standard Deductions & Exemptions
| Filing Status | Deduction Amount |
|---|---|
| Single | $12,200 |
| Married Filing Separately | $12,200 |
| Married Filing Jointly | $24,400 |
| Head of Household | $18,350 |
| Qualifying Widow(er) | $24,400 |
Earned Income Credit Table for 2019 Income Limits & Maximum Amounts
See the earned income and adjusted gross income (AGI) limits
| Filing Status | No Qualifying Children | 1 Qualifying Child | 2 Qualifying Children | 3+ Qualifying Children |
|---|---|---|---|---|
| Single, Head of Household, or Widowed | $15,570 | $41,094 | $46,703 | $50,162 |
| Married Filing Jointly | $21,370 | $46,884 | $52,493 | $55,952 |
The EITC maximum credit amounts for 2019 are:
- $6,557 with three or more qualifying children
- $5,828 with two qualifying children
- $3,526 with one qualifying child
- $529 with no qualifying children
2018 Tax Brackets
Here are the 2018 tax brackets. They are the tax brackets for your income earned in 2018 (which will be filed on your 2018 tax return due on the tax deadline in 2019).
| Tax Rate | Single | Married Filing Joint | Married Filing Separate | Head of Household |
|---|---|---|---|---|
| 10% | Up to $9,525 | Up to $19,050 | Up to $9,525 | Up to $13,600 |
| 12% | $9,526-$38,700 | $19,051-$77,400 | $9,526-$38,700 | $13,601-$51,800 |
| 22% | $38,701-$82,500 | $77,401-$165,000 | $38,701-$82,500 | $51,801-$82,500 |
| 24% | $82,501-$157,500 | $165,001-$315,000 | $82,501-$157,500 | $82,501-$157,500 |
| 32% | $157,501-$200,000 | $315,001-$400,000 | $157,501-$200,000 | $157,501-$200,000 |
| 35% | $200,001-$500,000 | $400,001-$600,000 | $200,001-$300,000 | $200,001-$500,000 |
| 37% | Over $500,000 | Over $600,000 | Over $300,000 | Over $500,000 |
Earned Income Credit Table for 2018 Income Limits & Maximum Amounts
See the earned income and adjusted gross income (AGI) limits
| Filing Status | No Qualifying Children | 1 Qualifying Child | 2 Qualifying Children | 3+ Qualifying Children |
|---|---|---|---|---|
| Single, Head of Household, or Widowed | $15,270 | $40,320 | $45,802 | $49,194 |
| Married Filing Jointly | $20,950 | $46,010 | $51,492 | $54,884 |
The EITC maximum credit amounts for 2018 are:
- $6,431 with three or more qualifying children
- $5,716 with two qualifying children
- $3,461 with one qualifying child
- $519 with no qualifying children
