2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $209,425 $ 523,600 $ 9,950 $ 40,525 $ 86,375 $164,925 $209,425 $523,600 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,900 $ 81,050 $172,750 $329,850 $418,850 $ 628,300 $ 19,900 $ 81,050 $172,750 $329,850 $418,850 $628,300 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,200 $ 54,200 $ 86,350 $164,900 $209,400 $ 523,600 $ 14,200 $ 54,200 $ 86,350 $164,900 $209,400 $ 523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Z-Head of Household If taxable income is over: But not over: 0 $ $14,200 $ 54,200 $ 86,350 $164,900 $ 209,400 $ 523,600 $ 14,200 $ 54,200 $ 86,350 $164,900 $ 209,400 $ 523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $209,425 $314,150 $ 9,950 $ 40,525 $ 86,375 $164,925 $209,425 $314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150 Jackson has the choice to invest in city of Mitchell bonds or Sundial, Incorporated corporate bonds that pay 6 percent interest. Jackson is a single taxpayer who earns $58,400 annually. Assume that the city of Mitchell bonds and the Sundial, Incorporated bonds have similar risk What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial, Incorporated bonds for 2021? (Use tax rate schedule.) Multiple Choice 4.68 percent 6.88 percent 4.88 percent 408 percent None of the choices are correct. Marc, a single taxpayer, earns $191,000 in taxable income and $5,900 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for year 2021, what is his current marginal tax rate? (Use tax rate schedule.) Multiple Choice 22.00 percent 32.00 percent 34.00 percent 42.00 percent None of the choices are correct