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What Tax Rates do I use for Filing this Year?

February 01, 2022

Read up on the IRS’ annual inflation adjustments for tax year 2021. Though released last year, these rates apply to returns filed in 2022 for the 2021 tax year.

The IRS has adjusted tax rates, standard deduction amounts, AMT limitations, earned income credit, contributions to health flexible spending arrangements, qualified transportation fringe benefits and more. Check out what’s changed for tax year 2021.

Though released last year, these rates apply to this coming filing season. More than 60 tax provisions have changed, here are some of those changes.

Tax rates

Tax RateSingleHead of HouseholdMarried Filing Jointly/Surviving SpouseMarried Filing Separately
10%$0-$9,950$0 to $14,200$0 to $19,900$0 to $9,950
12%$9,951 to $40,525$14,201 to $54,200$19,901 to $81,050$9,951 to $40,525
22%$40,526 to $86,375$54,201 to $86,350$81,050 to $172,750$40,526 to $86,375
24%$86,376 to $164,925$86,351 to $164,900$172,751 to $329,850$85,526 to $164,925
32%$164,926 to $209,425$164,901 to $209,400$329,851 to $418,850$164,926 to $209,425
35%$209,426 to $523,600$209,401 to $523,600$418,851 to $628,300$209,426 to $314,150
37%Over $523,600Over $523,600Over $628,300Over $314,150

Standard deduction

Single and married filing separately taxpayers- $12,550

Married filing jointly- $25,100

Heads of household- $18,800

Personal exemption

Remains 0 (elimination of personal exemption was a TCJA provision)

Itemized deductions

No limitation or phase-out on the total amount of itemized deductions (eliminated by TCJA). However, the state and local tax deduction is still limited to $10,000.

AMT Exemption Amounts

Individuals- $73,600

Married filing jointly & surviving spouses- $114,600

Married filing separately- $57,300

Trusts & estates- $25,700

Earned income tax credit

Maximum credit allowed is $1,502 if taxpayer has no qualifying children, $3,618 if there is one qualifying child, $5,980 for two qualifying children and $6,728 for three.

Qualified transportation fringe benefit

This remains $270 (monthly limitation each for qualified parking, commuter highway vehicle and any transit pass).

Contributions to health flexible spending arrangements

The dollar limitation for employee salary reductions for contributions to health FSAs remains $2,750.

Medical savings account

Participants with self-only coverage in a medical savings account are allowed an annual deductible no less than $2,400 and no more than $3,600.

For self only coverage, the max out of pocket expense is $4,800.

Participants with family coverage- the floor for the annual deductible is $4,800 and no more than $7,150.

For family coverage, the out of pocket expense limit is $8,750.

Lifetime learning credit

The adjusted gross income amount used by joint filers to assess the reduction in the lifetime learning credit is $119,000.

Foreign earned income exclusion


Estates of decedents

For estates of decedents who passed away in 2021, they have a basic exclusion amount of $11,700,000.

Annual exclusion for gifts

This remains $15,000. Note this amount increases to $16,000 in 2022.


The maximum credit for adoptions in 2021 is $14,440.

Don’t forget to check out our 2021 Year End Tax Planning Guide for Individuals.

Questions? Contact us.

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