Next Year's Tax Brackets

September 15, 2011

This morning, the Bureau of Labor Statistics released its August 2011 estimate for the Consumer Price Index (CPI), which allows us to determine what next year's tax brackets will look like. The IRS uses CPI numbers to adjust tax brackets (and other parameters) for inflation; each year's brackets are based on the CPI-U from September to August of the previous year. The August 2011 number is therefore the final piece of data needed to determine the tax brackets for 2012.

Key Tax Parameter Amounts for 2012
Tax Parameter 2011 Amount 2012 Amount
Standard Deduction
    For singles $5,800 $5,950
    For married filing jointly $11,600 $11,900
    For heads of households $8,500 $8,700
    For married filing separately $5,800 $5,950
Personal Exemption $3,700 $3,800
Tax Bracket Thresholds for Single Filers
    10% rate $0 $0
    15% rate $8,500 $8,700
    25% rate $34,500 $35,350
    28% rate $83,600 $85,650
    33% rate $174,400 $178,650
    35% rate $379,150 $388,350
Tax Bracket Thresholds for Heads of Households
    10% rate $0 $0
    15% rate $12,150 $12,400
    25% rate $46,250 $47,350
    28% rate $119,400 $122,300
    33% rate $193,350 $198,050
    35% rate $379,150 $388,350
Tax Bracket Thresholds for Married Filing Jointly
    10% rate $0 $0
    15% rate $17,000 $17,400
    25% rate $69,000 $70,700
    28% rate $139,350 $142,700
    33% rate $212,300 $217,450
    35% rate $379,150 $388,350
Tax Bracket Thresholds for Married Filing Separately
    10% rate $0 $0
    15% rate $8,500 $8,700
    25% rate $34,500 $35,350
    28% rate $69,675 $71,350
    33% rate $106,150 $108,725
    35% rate $189,575 $194,175
Source: Tax Foundation calculations using BLS CPI-U Data

For more information and detail, read our latest report, "Tax Foundation Projects 2012 Tax Parameters Following Release of August CPI Data."

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