2021 Oklahoma Income Tax Brackets: A Guide

The Internal Revenue Service (IRS) recently announced the retirement plan contribution changes for 2022, which marks a significant development in the tax landscape. For those who are curious about the tax rates and brackets for their state income taxes, this article provides an overview of the 2021 Oklahoma income tax brackets.

Tax Brackets for Heads of Households

For heads of households, the 2021 tax year introduces a new bracket structure. The threshold for this category is $19,400. This means that any taxable income earned above this amount will be subject to federal income taxes at the applicable rate.

Single Taxpayers and Married Individuals Filing Separately

For single taxpayers and married individuals filing separately, the 2021 tax year has a threshold of $12,950. This bracket applies to those who are single or filing separately from their spouse.

Married Couples Filing Jointly

Married couples filing jointly have a higher threshold of $25,900 for the 2021 tax year. This bracket applies to those who file taxes jointly with their spouse.

Federal Income Tax Brackets and Rates

The federal income tax brackets are broken down into seven taxable income groups, based on one's filing status. These rates apply to taxable income after taking into account standard deductions (or itemized deductions) and other tax breaks. The IRS announced the retirement plan contribution changes for 2022, which marks a significant development in the tax landscape.

Tax Rates and Thresholds

Here are the federal income tax brackets and rates for the 2021 tax year:

* 10 percent: Taxable income between $0 to $9,875

* 12 percent: Taxable income between $9,876 to $40,125

* 22 percent: Taxable income between $41,776 to $89,075

* 24 percent: Taxable income between $89,076 to $170,050

* 32 percent: Taxable income above $170,051

Oklahoma State Income Tax Tables

For Oklahoma residents, the state income tax rates and thresholds for married (separate) filers in 2021 are as follows:

* 10 percent: Income from $0 to $9,950

* 12 percent: Income from $9,951 to $40,125

In conclusion, the 2021 Oklahoma income tax brackets provide a framework for understanding the tax rates and thresholds for federal and state income taxes. By knowing these brackets, individuals can better plan their finances and make informed decisions about their tax obligations. Remember that these brackets apply to taxable income earned in the 2021 tax year and are used in tax returns filed in April 2022.

2021 oklahoma income tax brackets