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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