Tax Rates for 2021
Individual Taxpayer Tax Rates
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Estates & Trusts Tax Rates
2021 Tax Rates – Estates & Trusts |
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10% |
0 to $2,650 |
24% |
$2,650 to $9,550 |
35% |
$9,550 to $13,050 |
37% |
Over $13,050 |
Social Security & Medicare Tax Rates
Social Security |
2021 Tax Rates |
Social Security Tax Rate: Employers |
6.2% |
Social Security Tax Rate: Employees |
6.2% |
Social Security Tax Rate: Self-Employed |
15.3% |
Maximum Taxable Earnings |
$142,800 |
Medicare Base Salary |
Unlimited |
Medicare Tax Rate: Employers |
1.45% |
Medicare Tax Rate: Employees |
1.45% |
Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers) |
0.9% |
Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers) |
3.8% |
Miscellaneous Rates
Miscellaneous |
2021 Tax Rates |
Business expensing limit: Cap on equipment purchases |
$2,620,000 |
Business expensing limit: New and Used Equipment and Software |
$1,050,000 |
Qualified Business Income threshold amount: |
$164,925 (single and head of household); $329,800 (married filing joint return) |
Qualified Small Employer Health Reimbursement Arrangement limit: |
$5,300 (single coverage); $10,700 (family coverage) |
Prior-year safe harbor for estimated taxes of higher-income |
110% of your 2020 tax liability |
Standard mileage rate for business driving |
56 cents |
Standard mileage rate for medical driving |
16 cents |
Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station |
16 cents |
Standard mileage rate for charitable driving |
14 cents |
Child Tax Credit |
$2,000 |
Unearned income maximum for children under 19 before kiddie tax applies |
$1,100 |
Maximum capital gains tax rate for taxpayers with income up to $40,400 for single filers, $80,800 for married filing jointly |
0% |
Maximum capital gains tax rate for taxpayers with income above $40,400 for single filers, $80,800 for married filing jointly |
15% |
Maximum capital gains tax rate for taxpayers with income above $445,850 for single filers, $501,600 for married filing jointly |
20% |
Capital gains tax rate for unrecaptured Sec. 1250 gains |
25% |
Capital gains tax rate on collectibles |
28% |
Maximum contribution for Traditional/Roth IRA |
$6,000 if under age 50 |
Maximum employee contribution to SIMPLE IRA |
$13,500 if under age 50 |
Maximum Contribution to SEP IRA |
25% of eligible compensation |
401(k) maximum employee contribution limit |
$19,500 if under age 50 |
Estate tax exemption |
$11,700,000 |
Annual Exclusion for Gifts |
$15,000 |
Education Credits
Education |
2021 Tax Rates |
American Opportunity Credit (Hope) |
$2,500 |
Lifetime Learning Credit |
$2,000 |
Student Loan Interest Deduction |
$2,500 |
Coverdell Education Savings Contribution |
$2,000 |
Source: IRS Revenue Procedure 2020-45 |
Standard Meal Rates for Family Child Care Providers
Continental U.S. |
2020-21 Tax Rates (July 1, 2020-June 30, 2021) |
For each breakfast |
$1.39 |
For each lunch or supper |
$2.61 |
For each snack (up to 3 per day for each child) |
$0.78 |
Alaska |
2020-21 Tax Rates (July 1, 2020-June 30, 2021) |
For each breakfast |
$2.22 |
For each lunch or supper |
$4.24 |
For each snack (up to 3 per day for each child) |
$1.26 |
Hawaii |
2020-21 Tax Rates (July 1, 2020-June 30, 2021) |
For each breakfast |
$1.62 |
For each lunch or supper |
$3.06 |
For each snack (up to 3 per day for each child) |
$0.91 |
Source: Federal Register |
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