Each year, the IRS adjusts tax brackets for inflation and changes in the cost of living. These changes are aimed to collect the same amount of tax money from the taxpayers adjusted to the inflation rate. The IRS uses the Chained Consumer Price Index or shortly known as C-CPI to adjust income thresholds, deduction amounts, and credit values.

Tax brackets fall into four respective categories. The brackets are different for single filers, married joint filers, married separate filers, and for heads of household. However, tax rates in all four filing statuses are the same for all and there are seven different tax rates, 10%,12%, 22%, 24%, 32%, 35%, and 37%.

Here are the tax brackets for the 2019 tax year (for taxes due April 2020)

Tax RateSingle FilersMarried – Joint FilersHead of Household
10%$0 – $9,875$0-$19,750$0 – $14,100
$9,876 – $40,125$19,8-751 – $80,250$14,101 – $53,700
22%$40,126 – $85,525$80,251 – $171,050$53,701 – $85,500
24%$85,526 – $163,300$171,050 – $326,600$85,501 – $163,300
32%$163,301 – $207,350
$326,601 – $414,700$163,301 – $207,350
35%$207,351 – $518,400$414,701 – $622,050$207,351 – $518,400
37%$518,401 and higher$622,050 and higher$518,401 and higher

With the adjusted tax brackets and standard deduction increase which is $12,200 for this tax year, taxpayers will pay less. Even though the elimination of personal exemptions may sound the opposite, these changes are all aimed to benefit the lower and middle-income individuals and families.

If you want to learn more about how to pay less tax and get more refunds on this year’s taxes, you might learn a few things about the changes with the help of our simplified guidelines for absolutely free of charge.

How to pay less tax in 2019 / 2020

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