Bloomberg Tax Released it's 2021 Projected U.S. Tax Rates Report

From 2020 to 2021, most inflation-adjusted amounts in the tax code, including the threshold dollar amounts for tax rate brackets, are projected to rise by about 1%.

Bloomberg Tax Released it's 2021 Projected U.S. Tax Rates Report

On September 11, 2020, Bloomberg Tax & Accounting released its 2021 Projected U.S. Tax Rates report. Based on changes in the chained Consumer Price Index (chained CPI) released today by the U.S. Bureau of Labor Statistics, Bloomberg Tax & Accounting's annual report is a detailed and comprehensive projection of inflation-adjusted amounts in the tax code. Each year, these projections facilitate tax planning by providing early notice of the amount of tax savings that taxpayers will realize as a result of increases in deduction limits, upward adjustments to tax bracket thresholds, and increases in many other key thresholds. 

From 2020 to 2021, most inflation-adjusted amounts in the tax code, including the threshold dollar amounts for tax rate brackets, are projected to rise by about 1%. Tax code amounts that are adjusted based on the medical component of the chained CPI, on the other hand, are projected to rise by about 4% to 5%.

"As expected, we are projecting small increases for most inflation-adjusted amounts this year. These small increases are due to the use of the chained CPI to measure the cost of living adjustments and the slow rise in inflation overall," said Steven Grodnitzky, practice lead for U.S. Income Tax and IRS Procedure, Bloomberg Tax & Accounting. "Taxpayers and tax planners can get an early start on 2021 tax year strategies by using these projections before the release of figures by the IRS."

Individual Income Tax Rate Brackets


Bloomberg Tax & Accounting has projected 2021 income ranges for each tax rate bracket. Income ranges for the tax brackets for married taxpayers filing jointly and for single taxpayers are shown below. Rate brackets for other filing statuses are included in the full report.

Married Filing Jointly and Surviving Spouses


Projected 2021 Tax Rate Bracket Income Ranges
10% - $0 to $19,900
12% - $19,901 to $81,050
22% - $81,051 to $172,750
24% - $172,751 to $329,850
32% - $329,851 to $418,850
35% - $418,851 to $628,300
37% - $628,301 or more


Unmarried Individuals (other than Surviving Spouses and Heads of Households)

Projected 2021 Tax Rate Bracket Income Ranges
10% - $0 to $9,950
12% - $9,951 to $40,525
22% - $40,526 to $86,375
24% - $86,376 to $164,925
32% - $164,926 to $209,425
35% - $209,426 to $523,600
37% - $523,601 or more

Standard Deduction 

Bloomberg Tax & Accounting has projected the following standard deduction amounts for 2021:

Filing Status
Projected 2020
Standard Deduction
Married Filing Jointly/Surviving Spouses
$25,100
Heads of Household
$18,800
All Other Taxpayers
$12,550

Alternative Minimum Tax (AMT) 

Projected 2021 AMT exemption amounts are shown below.

Filing Status
Projected 2020
AMT Exemption Amount
Married Filing Jointly/Surviving Spouses
$114,600
Unmarried Individuals
(other than Surviving Spouses)
$73,600
Married Individuals Filing Separate Returns
$57,300
Estates and Trusts
$25,700

To download the full report in pdf, click here.

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IndraStra Global: Bloomberg Tax Released it's 2021 Projected U.S. Tax Rates Report
Bloomberg Tax Released it's 2021 Projected U.S. Tax Rates Report
From 2020 to 2021, most inflation-adjusted amounts in the tax code, including the threshold dollar amounts for tax rate brackets, are projected to rise by about 1%.
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