We still have two months left in 2020, but the IRS has already released a breakdown of next year’s marginal income tax rates.
Each year, the taxman updates its individual income tax brackets to reflect inflation. There are seven brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
These brackets are marginal, which means that different portions of your income — up to a specified dollar amount — will be taxed at a different rate.
These rates are in effect for 2021 and will affect the returns you file for that year in 2022.
Read more at CNBC.