The Tax Cuts and Jobs Act dramatically changed the American tax code. One of the features of the new tax code included tax rates that shift from year to year in the first years of the new code. Additionally, tax brackets have long been tied to inflation, which means they can always change from year to year. So what are the tax rates for 2020? While all of 2020’s tax rates are not yet set in stone, our experts at Tax Defense Partners have current estimates of the 2020 tax rates, adjusted for estimated inflation. Read on to get a first look at the 2020 tax rates.
Estimated 2020 Tax Brackets
Below, see some of the estimated tax brackets for 2020, based on the tax code and estimated inflation adjustments.
Individual Taxpayer Estimated 2020 Tax Brackets
|
Income |
Tax Due |
|
0 – $9,875 |
10% of taxable income |
|
$9,876 – $40,125 |
$987.50 + 12% of the amount over $9,875 |
|
$40,126 – $85,525 |
$4,617.50+ 22% of the amount over $40,125 |
|
$85,526 – $163,300 |
$14,605.50 + 24% of the amount over $85,525 |
|
$163,301 – $207,350 |
$33,217.50 + 32% of the amount over $163,300 |
|
$207,351 – $518,400 |
$47,367 + 35% of the amount over $207,350 |
|
$518,401+ |
$156,235 + 37% of the amount over $518,400 |
Married Filing Jointly Estimated 2020 Tax Brackets
|
Income |
Tax Due |
|
0 – $19,750 |
10% of taxable income |
|
$19,751 – $80,250 |
$1,975 + 12% of the amount over $19,750 |
|
$80,251 – $171,050 |
$9,235 + 22% of the amount over $80,250 |
|
$171,051 – $326,600 |
$29,211 + 24% of the amount over $171,050 |
|
$326,601 – $414,700 |
$66,543 + 32% of the amount over $326,600 |
|
$414,701 – $622,050 |
$94,734 + 35% of the amount over $414,700 |
|
$622,051+ |
$167,307.50 + 37% of the amount over $622,050 |
Married Filing Separately Estimated 2020 Tax Brackets
|
Income |
Tax Due |
|
0 – $9,875 |
10% of taxable income |
|
$9,876 – $40,125 |
$987.50 + 12% of the amount over $9,875 |
|
$40,126 – $85,525 |
$4,617.50+ 22% of the amount over $40,125 |
|
$85,526 – $163,300 |
$14,605.50 + 24% of the amount over $85,525 |
|
$163,301 – $207,350 |
$33,217.50 + 32% of the amount over $163,300 |
|
$207,351 – $311,025 |
$47,367 + 35% of the amount over $207,350 |
|
$311,026+ |
$83,652.75 + 37% of the amount over $$311,025 |
Head of Household Estimated 2020 Tax Brackets
|
Income |
Tax Due |
|
0 – $14,100 |
10% of taxable income |
|
$14,101 – $53,700 |
$1,410+ 12% of the amount over $14,100 |
|
$53,701 – $85,500 |
$6,162 + 22% of the amount over 53,700 |
|
$85,501 – $163,300 |
$13,158 + 24% of the amount over $85,500 |
|
$163,301 – $207,350 |
$31,830 + 32% of the amount over $163,300 |
|
$207,351 – $518,400 |
$45,926 + 35% of the amount over $207,350 |
|
$518,401+ |
$154,793.50 + 37% of the amount over $518,400 |
Trust and Estate Estimated 2020 Tax Brackets
|
Income |
Tax Due |
|
0 – $2,600 |
10% of taxable income |
|
$2,601 – $9,450 |
$260 + 24% of the amount over $2,600 |
|
$9,451 – $12,950 |
$1,904 + 35% of the amount over $9,450 |
|
$12,951+ |
$3,129 + 37% of the amount over $12,950 |
Personal Exemption Tax Rates for 2020
In the past, taxpayers could generally use one exemption for themselves, one for their spouse (if married filing jointly), and one for each dependent. But as of 2020, the TCJA has eliminated the ability to use any personal exemptions.
Estimated Standard Deduction Amounts for 2020
The TCJA dramatically increased the standard deduction amount for most taxpayers. This increased standard deduction amount remains largely the same for 2020, with some changes due to inflation. Below, view the estimated standard deduction amounts for 2020, adjusted for projected inflation.
|
Status |
Estimated 2020 Standard Deduction Amount |
|
Single |
$12,400 |
|
Married Filing Jointly |
$24,800 |
|
Married Filing Separately |
$12,400 |
|
Heads of Household |
$18,650 |
Estimated 2020 Alternative Minimum Tax Exemption Amounts
The Alternative Minimum Tax (AMT) is another aspect of the tax code that is tied to inflation. Based on estimated inflation for 2020, the 2020 AMT exemption amounts are projected to be as follows: $72,900 for individuals, $113,400 for married filing jointly, $56,700 for married filing separately, and $25,400 for trusts and estates.
Final Thoughts on 2020 Tax Rates
While the above figures are only some of the estimated rates and brackets for 2020, these numbers can help you start planning for the 2020 tax season. The official tax brackets for 2020 are slated to be announced by the IRS sometime later this year. Generally, the IRS announces official tax brackets and rates sometime in October or November.