We’re happy to share some relatively good news for 2022, as the IRS schedule for federal tax rates and income brackets for 2022 provide some tax breaks for the substantial inflationary impact we’ve all experienced in 2021. While the tax rates themselves remain unchanged, you’ll be able to pocket some extra cash as each of the seven income brackets have been increased for inflation.
For 2022 individual single taxpayers: | ||||
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10% | Taxable income up to $10,275 | |||
12% | Taxable income between $10,275 to $41,775 | |||
22% | Taxable income between $41,775 to $89,075 | |||
24% | Taxable income between $89,075 to $170,050 | |||
32% | Taxable income between $170,050 to $215,950 | |||
35% | Taxable income between $215,950 to $539,900 | |||
37% | Taxable income over $539,900 |
For 2022 married individuals filing jointly: | ||||
---|---|---|---|---|
10% | Taxable income up to $20,550 | |||
12% | Taxable income between $20,550 to $83,550 | |||
22% | Taxable income between $83,550 to $178,150 | |||
24% | Taxable income between $178,150 to $340,100 | |||
32% | Taxable income between $340,100 to $431,900 | |||
35% | Taxable income between $431,900 to $647,850 | |||
37% | Taxable income over $647,850 |
The standard deduction for 2022 was also increased as follows:
Married couples filing jointly: $25,900
Single taxpayers and married individuals filing separately: $12,950
Heads of households: $19,400 for tax year 2022
There’s good news too as the agency recently announced increases to your 2022 retirement plan contributions.
To compare, here are the federal tax brackets for 2021.
2021 individual single taxpayers: | ||||
---|---|---|---|---|
10% | Taxable income up to $9,950 | |||
12% | Taxable income between $9,950 to $40,525 | |||
22% | Taxable income between $40,525 to $86,375 | |||
24% | Taxable income between $86,375 to $164,925 | |||
32% | Taxable income between $164,925 to $209,425 | |||
35% | Taxable income between $209,425 to $523,600 | |||
37% | Taxable income over $523,600 |
2021 married individuals filing jointly: | ||||
---|---|---|---|---|
10% | Taxable income up to $19,900 | |||
12% | Taxable income between $19,900 to $81,050 | |||
22% | Taxable income between $81,050 to $172,750 | |||
24% | Taxable income between $172,750 to $329,850 | |||
32% | Taxable income between $329,850 to $418,850 | |||
35% | Taxable income between $418,850 to $628,300 | |||
37% | Taxable income over $628,300 |
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