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A Look at 2020 Tax Rates

A Look at 2020 Tax Rates


in Tax Info
A Look at 2020 Tax Rates

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.