TAX RATES
2020 Tax Rates – Single Taxpayers – Standard Deduction
$12,400
2020 Rates
10%
0 to $9,875
12%
$9,876 to $40,125
22%
$40,126 to $85,525
24%
$85,526 to $163,300
32%
$163,301 to $207,350
35%
$207,351 to $518,400
37%
Over $518,401
2020 Tax Rates – Married Jointly & Surviving Spouses – Standard Deduction $24,800
10%
0 to $19,750
12%
$19,751 to $80,250
22%
$80,251 to $171,050
24%
$171,051 to $326,600
32%
$326,601 to $414,700
35%
$414,701 to $622,050
37%
Over $622,051
2020 Tax Rates – Married Filing Separately – Standard Deduction $12,400
10%
0 to $9,875
12%
$9,876 to $40,125
22%
$40,126 to $85,525
24%
$85,526 to $163,300
32%
$163,301 to $207,350
35%
$207,351 to $311,025
37%
Over $311,026
2020 Tax Rates – Head of Household – Standard Deduction $18,650
10%
0 to $14,100
12%
$14,101 to $53,700
22%
$53,701 to $85,500
24%
$85,501 to $163,300
32%
$163,301 to $207,350
35%
$207,351 to $518,400
37%
Over $518,401
2020 Tax Rates – Estates & Trusts
10%
0 to $2,600
24%
$2,601 to $9,450
35%
$9,451 to $12,950
37%
Over $12,951
Social Security
2016 Tax Rates
Social Security Tax Rate: Employers
6.2%
Social Security Tax Rate: Employees
6.2%
Social Security Tax Rate: Self-Employed
12.4%
Maximum Taxable Earnings
$137,700
Medicare Base Salary
Unlimited
Medicare Tax Rate
1.45%
Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)
0.9%
Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)
3.8%
Miscellaneous
2020 Tax Rates
Business expensing limit: Cap on equipment purchases
$2,500,000
Business expensing limit: New and Used Equipment and Software
$1,040,000
Standard mileage rate for business driving
57.5 cents
Standard mileage rate for medical/moving driving
17 cents
Standard mileage rate for charitable driving
14 cents
Child Tax Credit
$2,000
Unearned income maximum for children under 19 before kiddie tax applies
$2,200
Capital gains tax rate for unrecaptured Sec. 1250 gains
25%
Capital gains tax rate on collectibles
28%
Maximum contribution for Traditional/Roth IRA
$6,000 if under age 50
$7,000 if 50 or older
Maximum employee contribution to SIMPLE IRA
$13,500 if under age 50
$19,500 if 50 or older
Maximum Contribution to SEP IRA
25% of eligible compensation
up to $57,000
401(k) maximum employee contribution limit
$57,000 if under age 50
$63,500 if 50 or older
Estate tax exemption
$11,580,000
Annual Exclusion for Gifts
$15,000
Education
2020 Tax Rates
American Opportunity Credit (Hope)
$2,500
Lifetime Learning Credit
$2,000
Student Loan Interest Deduction
$2,500
Coverdell Education Savings Contribution
$2,000
Standard Meal Rates for Family Child Care Providers for 2020 income tax returns
Continental U.S.
2020 Tax Rates
For each breakfast
$1.33
For each lunch or supper
$2.49
For each snack (up to 3 per day for each child)
$0.74