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2021 Marginal Tax Brackets

Your marginal tax bracket determines how much of the earnings from savings and investments you get to keep after taxes. Below are the four individual tax rate schedules for 2021:

Individual Tax Rate Schedules for 2021
Filing Status Taxable Income ($) Marginal Tax Bracket Rate (%)
Married Filing Jointly 0 to 19,900 10
19,901 to 81,050 12
81,051 to 172,750 22
172,751 to 329,850 24
329,861 to 418,850 32
418,851 to 628,300 35
628,301 and higher 37
Head of Household 0 to 14,200 10
14,201 to 54,200 12
54,201 to 86,350 22
86,351 to 164,900 24
164,901 to 209,400 32
209,401 to 523,600 35
523,601 and higher 37
Single 0 to 9,950 10
9,951 to 40,525 12
40,526 to 86,375 22
86,376 to 164,925 24
164,926 to 209,425 32
209,426 to 523,600 35
523,601 and higher 37
Married Filing Separately 0 to 9,950 10
9,951 to 40,525 12
40,526 to 86,375 22
856,376 to 164,925 24
164,926 to 209,425 32
209,426 to 314,150 35
314,151 and higher 37

You can compare yields by using the following formula:

Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %) or see www.calcxml.com/calculators/inc11?skn, which includes both federal and state income tax rates.

Example: Assume you are in the 22% tax bracket, and have an account with a 4.0% tax-free yield. To get the equivalent taxable yield, divide 4.0% by 78% (100% - 22%). The taxable yield is 5.13%.