Taxes

Tax Brackets for 2022 versus 2021

It’s never too early to begin considering your upcoming tax return. The next return that the majority of individuals will need to file is their federal tax return for the 2022 tax year, which, by the way, will be due on April 18, 2023, unless you sought an extension to file your 2021 return (or October 16, 2023, if extended). The actual tax rates for the year 2022 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%, which are the same rates that are in place for the tax year 2021. The 2022 tax brackets, however, were modified to take inflation into account as they are every year. That means you might find yourself in a different tax bracket than the one you were in when you file your federal income tax return in 2022, which also means you might pay a different tax rate on part of your income.

Depending on your filing status, the tax bracket ranges for 2022 and 2021 are likewise different. For instance, the 22% tax bracket for single taxpayers in the 2022 tax year ranges from $41,776 to $89,075. For filers who are the head of the family, it rises from $55,901 to $89,050. (In 2021, the taxable income range for head-of-household filers in the 22% tax bracket ranged from $54,201 to $86,350; for single filers, the range was $40,526 to $86,375.) So, while you’re preparing a return or making plans to lower your tax obligation in the future, keep that in mind as well.

Let’s move on to the 2022 and 2021 tax brackets themselves. The tax rates and brackets you’ll need when preparing your 2022 federal income tax return are listed below:

Tax Rates in 2022 for Individuals and Married Couples Filing Jointly

Tax RateTaxable Income
(Single)
Taxable Income
(Married Filing Jointly)
10%Up to $10,275Up to $20,550
12%$10,276 to $41,775$20,551 to $83,550
22%$41,776 to $89,075$83,551 to $178,150
24%$89,076 to $170,050$178,151 to $340,100
32%$170,051 to $215,950$340,101 to $431,900
35%$215,951 to $539,900$431,901 to $647,850
37%Over $539,900Over $647,850

2022 Tax Rates for Heads of Household and Married Couples Filing

Tax RateTaxable Income
(Married Filing Separately)
Taxable Income
(Head of Household)
10%Up to $10,275Up to $14,650
12%$10,276 to $41,775$14,651 to $55,900
22%$41,776 to $89,075$55,901 to $89,050
24%$89,076 to $170,050$89,051 to $170,050
32%$170,051 to $215,950$170,051 to $215,950
35%$215,951 to $323,925$215,951 to $539,900
37%Over $332,925Over $539,900

Here are the tax brackets and rates for 2021 in case you haven’t already filed your 2021 tax return or you simply want to compare to see what’s changed:

Tax Rates in 2021 for Individuals and Married Couples Filing Jointly

Tax RateTaxable Income
(Single)
Taxable Income
(Married Filing Jointly)
10%Up to $9,950Up to $19,900
12%$9,951 to $40,525$19,901 to $81,050
22%$40,526 to $86,375$81,051 to $172,750
24%$86,376 to $164,925$172,751 to $329,850
32%$164,926 to $209,425$329,851 to $418,850
35%$209,426 to $523,600$418,851 to $628,300
37%Over $523,600Over $628,300

2021 Tax Rates for Heads of Household and Married Couples Filing Separate Returns

Tax RateTaxable Income
(Married Filing Separately)
Taxable Income
(Head of Household)
10%Up to $9,950Up to $14,200
12%$9,951 to $40,525$14,201 to $54,200
22%$40,526 to $86,375$54,201 to $86,350
24%$86,376 to $164,925$86,351 to $164,900
32%$164,926 to $209,425$164,901 to $209,400
35%$209,426 to $314,150$209,401 to $523,600
37%Over $314,150Over $523,600

The operation of tax brackets

Let’s say you have $100,000 in taxable income in 2022 and are unmarried. Will your 2022 tax bill just be 24% of $100,000, or $24,000, since $100,000 is in the 24% bracket for singles? No! Actually, your tax is less than that sum. This is due to the fact that, thanks to marginal tax rates, only a portion of your income is subject to a 24% tax. The remaining portion is taxed at rates of 10%, 12%, and 22%.
This is how it goes. Again, assuming you’re single and have $100,000 in taxable income in 2022, the first $10,275 of your income is subject to a 10% tax, which results in a $1,028 tax bill. The following $31,500 in income (the sum between $10,276 and $41,775) is subject to an extra $3,780 in tax at the 12% rate. The subsequent $47,300 of your income (from $41,776 to $89,075) is subject to a 22% tax rate for a total tax of $10,406. Only $10,925 of your remaining taxable income (the amount over $89,075) is subject to the 24% rate of tax, which results in an additional $2,622 in taxes. Your total tax for 2022 comes to merely $17,836 when all is said and done. (If a flat 24% rate were applied to the full $100,000, it would be $6,164 more.)

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