Tax Rates
Every year, tax rates adjust.
Take a peek at the tax rates for this year. Don’t miss any arrangements, don’t pay too much or too little.
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Social Security Tax Rate: Employers
2021 Tax Rates : 6.2%
Social Security Tax Rate: Employees
2021 Tax Rates : 6.2%
Social Security Tax Rate: Self-Employed
2021 Tax Rates : 15.3%
Maximum Taxable Earnings
2021 Tax Rates : $142,800
Medicare Base Salary
2021 Tax Rates : Unlimited
Medicare Tax Rate: Employers
2021 Tax Rates : 1.45%
Medicare Tax Rate: Employees
2021 Tax Rates : 1.45%
Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)
2021 Tax Rates : 0.9%
Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)
2021 Tax Rates : 3.8%
Business expensing limit: Cap on equipment purchases
2021 Tax Rates : $2,620,000
Business expensing limit: New and Used Equipment and Software
2021 Tax Rates : $1,050,000
Qualified Business Income threshold amount:
2021 Tax Rates : $164,925 (single and head of household); $329,800 (married filing joint return)
Qualified Small Employer Health Reimbursement Arrangement limit:
2021 Tax Rates : $5,300 (single coverage); $10,700 (family coverage)
Prior-year safe harbor for estimated taxes of higher-income
2021 Tax Rates : 110% of your 2020 tax liability
Standard mileage rate for business driving
2021 Tax Rates : 56 cents
Standard mileage rate for medical driving
2021 Tax Rates : 16 cents
Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station
2021 Tax Rates : 16 cents
Standard mileage rate for charitable driving
2021 Tax Rates : 14 cents
Child Tax Credit
2021 Tax Rates : $2,000
Unearned income maximum for children under 19 before kiddie tax applies
2021 Tax Rates : $1,100
Maximum capital gains tax rate for taxpayers with income up to $40,400 for single filers, $80,800 for married filing jointly
2021 Tax Rates : 0%
Maximum capital gains tax rate for taxpayers with income above $40,400 for single filers, $80,800 for married filing jointly
2021 Tax Rates : 15%
Maximum capital gains tax rate for taxpayers with income above $445,850 for single filers, $501,600 for married filing jointly
2021 Tax Rates : 20%
Capital gains tax rate for unrecaptured Sec. 1250 gains
2021 Tax Rates : 25%
Capital gains tax rate on collectibles
2021 Tax Rates : 28%
Maximum contribution for Traditional/Roth IRA
2021 Tax Rates :
$6,000 if under age 50
$7,000 if 50 or older
Maximum employee contribution to SIMPLE IRA
2021 Tax Rates :
$13,500 if under age 50
$16,500 if 50 or older
Maximum Contribution to SEP IRA
2021 Tax Rates : 25% of eligible compensation up to $58,000
401(k) maximum employee contribution limit
2021 Tax Rates :
$19,500 if under age 50
$26,000 if 50 or older
Estate tax exemption
2021 Tax Rates : $11,700,000
Annual Exclusion for Gifts
2021 Tax Rates : $15,000
American Opportunity Credit (Hope)
2021 Tax Rates : $2,500
Lifetime Learning Credit
2021 Tax Rates : $2,000
Student Loan Interest Deduction
2021 Tax Rates : $2,500
Coverdell Education Savings Contribution
2021 Tax Rates : $2,000
Source: IRS Revenue Procedure 2020-45
Standard Meal Rates for Family Child Care Providers for income tax returns
For each breakfast
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $1.39
For each lunch or supper
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $2.61
For each snack (up to 3 per day for each child)
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $0.78
Source: Federal Register
For each breakfast
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $2.22
For each lunch or supper
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $4.24
For each snack (up to 3 per day for each child)
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $1.26
Source: Federal Register
For each breakfast
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $1.62
For each lunch or supper
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $3.06
For each snack (up to 3 per day for each child)
2020-21 Tax Rates (July 1, 2020-June 30, 2021) : $0.91
Source: Federal Register