The tax tables for 2022, which determine the tax brackets for 2022, used by most people in Spring of 2022, while filing their 2022 taxes, have been set by the IRS.
As always, there are seven different tax brackets based upon the taxpayer’s filing status. The different brackets are the Single tax bracket, the Married filing jointly tax bracket (also used by Qualifying widows or widowers), Married filing separately, and Head of household.
All the tax filing types have the same tiers of tax rates, 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As you can see, the biggest tax bracket rate jump occurs between the 12% and 22% tax level. So, essentially, those under $41,775 (single) or $83,550 (married) are the “low” taxpayers, and those above are the “higher” taxpayers. There is another big jump between the 24% tax bracket and the 32% tax bracket. You can consider this the “upper class” or “upper income” portion of the U.S. population, at least when speaking about taxes and the rates each class, or tier pays.
As always, your actual percentage of taxes paid varies based upon various factors including tax deductions. Typically, taxes begin based upon the taxpayer’s Adjusted Gross Income (AGI), which is then reduced by either itemized deductions, or the standard deduction, and other various credits and deductions on Form 1040. So, even though a single person with a $90,000 salary would seemingly fall in the 24% tax bracket (income over $89,075), the standard deduction for 2022 is $12,500. Assuming no other deductions, tax credits, or adjustments, that would make their AGI $77,500, which falls in the 22% marginal tax rate bracket.
Single Tax Bracket 2022
- 37%, for incomes over $549,900
- 35%, for incomes over $215,950
- 32% for incomes over $170,050
- 24% for incomes over $89,075
- 22% for incomes over $41,775
- 12% for incomes over $10,275
- 10% for incomes of $10,275 or less
Married Filing Jointly Tax Bracket 2022
- 37%, for incomes over $647,850
- 35%, for incomes over $431,900
- 32% for incomes over $340,100
- 24% for incomes over $178,159
- 22% for incomes over $83,500
- 12% for incomes over $20,550
- 10% for incomes of $20,550 or less
Remember that each taxpayer pays through each previous tax bracket before paying at the next higher level. That is, a taxpayer filing single would pay 10% on the first $10,275 of income, then 15% on the amount from $10,276 to $41,275, and then 25%, and so on. Thus, the effective tax rate is always less than the final tax bracket, or marginal tax rate, the taxpayer ends up in. This is an extremely common misunderstanding.
IRS Tax Brackets Update 2023
Typically, in mid- to late-October, the IRS puts out a bulletin with the new tax brackets, along with numerous other tax levels, numbers, minimums, maximums, credits, deductions, and phaseouts that are adjusted for inflation.
The law typically dictates how any such numbers are adjusted, and the IRS announcement of rates is merely the result of carrying out those calculations based upon predetermined formulas. As such, the IRS doesn’t technically “set” any of the tax law numbers, although its calculations are the final word.
2021 IRS Tax Tables
If you’re looking for 2021 tax brackets or 2021 tax tables, here you go.
About the Author
By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He currently writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended as financial or tax advice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please note that material may not be updated regularly and that some of the information may not be current. Consult with your own tax professional when making decisions regarding your tax situation.