On Wednesday the IRS released the amounts for tax brackets and standard deduction for 2022. They said due to the high amount of inflation, the brackets increase much more than normal. If you’ve been following the news, the CPI (consumer price index) was 6.2% for inflation for October, which was the biggest increase in 30 years.
2022 Tax Brackets – Individuals
| IRS Tax Brackets – Individuals |
|---|
| Tax Rate (%) | 2022 Tax Brackets | 2021 Tax Brackets |
|---|---|---|
| 10% | Up to $10,275 | Up to $9,950 |
| 12% | $10,275 to $41,775 | $9,951 to $40,525 |
| 22% | $41,775 to $89,075 | $40,526 to $86,375 |
| 24% | $89,075 to $170,050 | $86,376 to $164,925 |
| 32% | $170,051 to $215,950 | $164,926 to $209,425 |
| 35% | $215,950 to $539,900 | $209,426 to $523,600 |
| 37% | Over $539,900 | Over $523,600 |
2022 Tax Brackets – Married Filing Jointly
| IRS Tax Brackets – Married Filing Jointly |
|---|
| Tax Rate (%) | 2022 Tax Brackets | 2021 Tax Brackets |
|---|---|---|
| 10% | Up to $20,550 | Up to $19,900 |
| 12% | $20,551 to $83,550 | $19,901 to $81,050 |
| 22% | $83,550 to $178,150 | $81,051 to $172,750 |
| 24% | $178,150 to $340,100 | $172,750 to $329,850 |
| 32% | $340,100 to $431,900 | $329,851 to $418,580 |
| 35% | $431,900 to $647,850 | $418,581 to $628,300 |
| 37% | Over $647,850 | Over $628,300 |
2022 Tax Brackets – Head of Household
You can file as head of household if you are unmarried and pay more than half the cost of a dependent, such as child, grandchild, or parent in a given year.
| IRS Tax Brackets – Head of Household |
|---|
| Tax Rate (%) | 2022 Tax Brackets | 2021 Tax Brackets |
|---|---|---|
| 10% | Up to $14,650 | Up to $14,200 |
| 12% | $14,650 to $55,900 | $14,200 to $54,200 |
| 22% | $55,901 to $89,050 | $54,201 to $86,350 |
| 24% | $89,051 to $170,050 | $86,351 to $164,901 |
| 32% | $170,051 to $215,950 | $164,901 to $209,400 |
| 35% | $215,951 to $539,900 | $209,401 to $523,600 |
| 37% | Over $539,900 | Over $523,600 |
Standard Deduction for 2022
The standard deduction is a deduction the government gives you that you do not need to pay tax on. Example, if you are single, the first $12,950 you make in 2022 is tax free.
| IRS Standard Deduction |
|---|
| Filing Status | 2022 Standard Deduction | 2021 Standard Deduction |
|---|---|---|
| Single | $12,950 | $12,550 |
| Married Filing Jointly | $25,900 | $25,100 |
| Head of Household | $19,400 | $18,800 |