# 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 tax rate schedules for 2021:

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

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%.