Next Year’s Tax Brackets September 15, 2011 Nick Kasprak Nick Kasprak 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.” Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics
