Here are the new income tax brackets for 2021

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We still have two months left in 2020, but the IRS has already released a breakdown of next year’s marginal income tax rates.

Each year, the taxman updates its individual income tax brackets to reflect inflation. There are seven brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%.     

These brackets are marginal, which means that different portions of your income — up to a specified dollar amount — will be taxed at a different rate.

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Original Article Source Credits:   CNBC , https://www.cnbc.com/

Article Written By:  Darla Mercado, CFP®

Original Article Posted on:  OCT 26 2020

Link to Original Article:  https://www.cnbc.com/2020/10/26/here-are-the-new-income-tax-brackets-for-2021.html

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