facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
What Is My Tax Bracket for the 2022 Tax Year? Thumbnail

What Is My Tax Bracket for the 2022 Tax Year?

It's never too early to start looking at your tax obligations for the coming tax season. The information in this article is for the 2022 tax year, which most taxpayers will file in 2023.


The federal income tax brackets for this year have been released and you can use them as a guide in planning how best handle finances going forward.


The seven 2021 tax rates themselves didn't change (they are the same as those in effect for the 2021 tax year); however, the tax bracket ranges were modified based on inflation. Because of this, it's possible you could be in a different tax bracket for 2022 than the last time you reported your taxes, even if your income has not changed.1


Reminder: Tax Brackets Are Marginal


The IRS divides income into different tax rates. Each subsequent portion of your income will have an increased tax rate. For example, if you are a single filer who made $40,125 in 2021, your first $10,275 will be taxed at 10 percent. The next portion of your income will be taxed at an increased rate; from $10,276 to $41,775, your tax rate will be 12 percent. 


As your income increases, you’ll fall into higher tax brackets and will have a higher tax rate for each portion of your income. 


Why Would My Tax Bracket Be Different? 


The IRS regularly adjusts tax brackets to take inflation into consideration. This is because, with inflation, people will face higher prices, meaning the purchasing power of their dollar is decreased. Knowing this, the IRS adjusts brackets in order to avoid bracket creep, a circumstance that occurs when inflation pushes your income into a higher tax bracket, or credits and deductions are reduced. In this scenario, an individual may not actually have increased purchasing power or greater disposable income, even with an increase in wages and salaries.1


Why Is It Important To Know My Tax Bracket?


The marginal tax rate is the amount of taxes you'll pay on each additional dollar earned. It's important to know this because it helps determine your effective tax liability, or how much revenue will go towards paying off what has been taken from us in our paycheck previously (elderly parents who rely solely upon their Social Security checks, students loans)


It can be hard understanding all of your options when it comes to paying them. But knowing which bracket applies just for this year or next could help with any implications that changes in earnings will have on an individual's overall tax burden- even if they are minimal pay increases.


You should also consider your marginal tax bracket when deciding whether to take the standard deduction, and if itemizing deductions is more beneficial for you. For example, giving a large lump sum of money towards charity can help reduce taxable income by lowering how much goes back into paying federal taxes.


Think about your taxes in retirement. If you're in a higher bracket, it makes sense to prioritize pre-tax savings such as those found within traditional IRAs and 401(k)s so that the current tax bill doesn't get too high when inflation is taken into account; meanwhile someone who falls under lower rates may want use an opportunity like this Roth IRA which can provide both tax free income during their lifetime but also allow them some wiggle room should things change unexpectedly (i..e., life insurance).


2022 Tax Brackets 


Without further ado, here are the 2022 tax brackets according to your filing status and income from the IRS.1


10% Tax Rate

  • Single Individuals: from $0 to $10,275
  • Married Individuals Filing Jointly: from $0 to $20,550
  • Heads of Households: from $0 to $14,650
  • Married Individuals Filing Separately: from $0 to $10,275


12% Tax Rate

  • Single Individuals: from $10,276 to $41,775
  • Married Individuals Filing Jointly: from $20,551 to $83,550    
  • Heads of Households: from $14,651 to $55,900
  • Married Individuals Filing Separately: from $10,276 to $41,775


22% Tax Rate

  • Single Individuals: from $41,776 to $89,075
  • Married Individuals Filing Jointly: from $83,551 to $178,150       
  • Heads of Households: from $55,901 to $89,050
  • Married Individuals Filing Separately: from $41,776 to $89,075


24% Tax Rate

  • Single Individuals: from $89,076 to $170,050        
  • Married Individuals Filing Jointly: from $178,151 to $340,100
  • Heads of Households: from $89,051 to $170,050
  • Married Individuals Filing Separately: from $89,076 to $170,050


32% Tax Rate

  • Single Individuals: from $170,051 to $215,950    
  • Married Individuals Filing Jointly: from $340,101 to $431,900        
  • Heads of Households: from $170,051 to $215,950
  • Married Individuals Filing Separately: from $170,051 to $215,950


35% Tax Rate

  • Single Individuals: $215,951 to $539,900
  • Married Individuals Filing Jointly: from $431,901 to $647,850
  • Heads of Households: from $215,951 to $539,900
  • Married Individuals Filing Separately: from $215,951 to $323,925


37% Tax Rate

  • Single Individuals: over $539,901    
  • Married Individuals Filing Jointly: over $647,851   
  • Heads of Households: over $539,901
  • Married Individuals Filing Separately: over $323,926


In addition to the tax inflation adjustments, the IRS also altered standard deductions. While the above rates and brackets are at the federal level, different states might have varying brackets and rates.


The US federal tax system can seem complex and confusing, but once you understand how tax brackets work, the math is simple. While it's generally true that taxes should not be the sole basis for your financial decisions, it's equally true that to ignore the impact taxes have on your finances can also be detrimental.

  1. IRS provides tax inflation adjustments for tax year 2022


AUTHORED BY GRIFFIN KALEPP, CFP - FINANCIAL PLANNER