A method for parallel context modeling through reordering the bits of an input sequence to form groups of bits in accordance with a context model-specific reordering schedule. The reordering schedule is developed such that the groups of bits are formed to satisfy two conditions: first, that the context for each of the bits in a group of bits is different from the context of each of the other bits in that group, and the context of each of the bits in that group is determined independently from each of the other bits in that group. The parallel context modeling may be used in encoding or decoding operations.