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 Rate | Taxable Income (Single) | Taxable Income (Married Filing Jointly) |
|---|---|---|
| 10% | Up to $10,275 | Up 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 $539,900 | Over $647,850 |
2022 Tax Rates for Heads of Household and Married Couples Filing
| Tax Rate | Taxable Income (Married Filing Separately) | Taxable Income (Head of Household) |
|---|---|---|
| 10% | Up to $10,275 | Up 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 $332,925 | Over $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 Rate | Taxable Income (Single) | Taxable Income (Married Filing Jointly) |
|---|---|---|
| 10% | Up to $9,950 | Up 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 $523,600 | Over $628,300 |
2021 Tax Rates for Heads of Household and Married Couples Filing Separate Returns
| Tax Rate | Taxable Income (Married Filing Separately) | Taxable Income (Head of Household) |
|---|---|---|
| 10% | Up to $9,950 | Up 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 $314,150 | Over $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.)
