When preparing your taxes for the 2022 tax year, one thing you’ll need to know is your tax bracket. The IRS uses these tax brackets to identify your tax rate and determine how much you owe in taxes. This guide provides more information about these tax brackets and how they work. Keep in mind that this guide covers only general information. For more specific information regarding your personal taxes, it’s best to meet with a tax adviser.
In This Piece
2022 Marginal Tax Brackets
To determine your tax bracket, you first need to know your filing status. There are currently five different IRS tax filing statuses: single, married filing jointly, married filing separately, qualified widow(er) and head of household. Additionally, the IRS divides these tax brackets into seven tiers that range from 10% to 37%, which are based on taxable income ranges.
2022 Tax Brackets for Married Filing Jointly and Qualifying Widow(er)s
| Tax Bracket | Taxable Income | How Much You Might Owe (rounded to the nearest dollar) |
| 10% | $20,550 and under | 10% of taxable income |
| 12% | $20,551 to $83,550 | $2,055 plus 12% of taxable income over $20,550 |
| 22% | $83,551 to $178,150 | $9,615 plus 22% of taxable income over $83,550 |
| 24% | $178,151 to $340,100 | $30,427 plus 24% of taxable income over $178,150 |
| 32% | $340,101 to $431,900 | $69,295 plus 32% of taxable income over $340,100 |
| 35% | $431,901 to $647,850 | $98,671 plus 35% of taxable income over $431,900 |
| 37% | $647,851 and over | $174,253.50 plus 37% of taxable income over $647,850 |
2022 Tax Brackets for Individuals and Married Filing Separately
| Tax Bracket | Taxable Income | How Much You Might Owe (rounded to the nearest dollar) |
| 10% | $10,275 and under | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of taxable income over $10,275 |
| 22% | $41776 to $89,075 | $15,213.50 plus 24% of taxable income over $89,075 |
| 24% | $89,076 to $170,050 | $29,502 plus 24% of taxable income over $172,750 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of taxable income over $170,050 |
| 35% | $215,951 to $539,900 | 49,335.50 plus 35% of taxable income over $215,950 |
| 37% | $539,901 or more | $162,718 plus 37% of taxable income over $539,900 |
2022 Tax Brackets for Head of Household
| Tax Bracket | Taxable Income | How Much You Might Owe (rounded to the nearest dollar) |
| 10% | $14,650 and under | 10% of taxable income |
| 12% | $14,651 to $55,900 | $1,465 plus 12% of taxable income over $14,650 |
| 22% | $55,901 to $89,050 | $6,415 plus 22% of taxable income over $55,900 |
| 24% | $89,051 to $170,050 | $13,708 plus 24% of taxable income over $89,050 |
| 32% | $170,051 to $215,950 | $33,148 plus 32% of taxable income over $170,050 |
| 35% | $215,951 to $539,900 | $47,836 plus 35% of taxable income over $215,950 |
| 37% | $539,901 and over | $161,218.50 plus 37% of taxable income over $539,900 |
How Tax Brackets Work
The United States uses a progressive tax system. In basic terms, this system increases a taxpayer’s tax liability as their taxable income rises. Simply put, the higher your taxable income, the higher the amount of taxes you can expect to pay.
There are four factors impacting these tax brackets: filing status, adjusted gross income, deductions and taxable income. Each of these factors is discussed below.
Filing Status
The IRS designates five different filing statuses:
- Single: Taxpayers who aren’t married and weren’t married at any point in 2022.
- Married Filing Jointly: Married couples who combine their income, deductions and credit by filing their tax return together.
- Married Filing Separately: Married couples that choose to file their tax returns separately rather than jointly.
- Qualified Widow(er): Widow(er)s who haven’t remarried and have a qualified dependent may be able to file as a qualified widow(er) for the two years following the year their spouse dies.
- Head of Household: Unmarried taxpayers with a qualifying dependent.
You may qualify for more than one tax filing status. It’s important to evaluate your options and determine which status provides the greatest tax benefits.
Adjusted Gross Income
Your adjusted gross income is the difference between your total gross income and any qualifying adjustments. You can calculate your AGI by taking your total gross income for the year and subtracting any qualifying deductions. However, if you work with a tax preparer or use an online tax preparation service, these services will automatically calculate your AGI based on your answers to a series of questions regarding your finances.
It’s important to note that your AGI doesn’t determine your tax bracket. Instead, you can use your AGI to determine what tax deductions you may be eligible for. With this information, you can then calculate your taxable income, which is done by taking your AGI and subtracting all eligible deductions.
Deductions
Taxpayers have the option of taking either a standard deduction or itemizing their deductions. A standard deduction is a flat amount based on your specific filing status. Itemized deductions, on the other hand, require you to complete Schedule A and make a list of your qualifying deductions.
Using the standardized deduction is the easiest and most popular route. However, you may be able to decrease your tax liability by itemizing your deductions instead. It’s important to evaluate your specific situation to determine which option is best for you.
Here’s a look at the standard deduction amounts for the 2022 tax year.
- Single: $12,950
- Married Filing Jointly: $25,900
- Married Filing Separately: $12,950
- Qualifying Widow(er): $15,900
- Head of Household: $19,400
Taxable Income
Once you calculate your AGI, you can subtract your standard or itemized deduction from your AGI to determine your taxable income. For instance, if you’re married and filing jointly with a combined income of $120,000 and you choose to take the standard deduction, your taxable income would be $94,100.
Examples of AGI and Federal Tax Brackets in Action
Now that you understand how to calculate your taxable income, let’s look at a few examples.
- Jane has an AGI of $64,500 and is filing as head of household. She opts for the standard deduction of $19,400, bringing her taxable income to $45,100. Using the tables above
- She owes 10% of the first $14,650, or $1,465.
- Plus 12% on $30,450, the remainder of her income, or $3,654.
- This brings her tax liability to $5,119 before any eligible credits.
- Sarah and John have a combined income of $126,700 and their status is married filing jointly. They opt for the standard deduction of $25,900, which brings their taxable income to $100,800. Using the tables above:
- They owe 10% of the first $20,550, or $2,055.
- Plus 12% on $63,000, the amount of their income between $20,550 and $83,550, or $7,560,
- Plus 22% on $17,250, which represents their income over $83,550, or $3,795.
- This brings their total tax liability to $13,410.
Just because you have a big tax liability, it doesn’t necessarily mean you’ll owe a lot of money at the end of the year. In most cases, taxes are taken from every paycheck. You can deduct this amount from your total tax liability. For example, if Sarah and John, in the example above, paid $12,000 throughout the year from their wages, they’d only owe $1,410 when they file their taxes.
If, however, you do have a big tax liability, you may want to talk to a tax adviser, because how you pay your taxes could impact your credit score.
Tax Brackets and State Income Tax
States have the freedom to set their own personal income tax rules, which may or may not be similar to the federal tax system.
Of the 50 states, eight have no state personal tax:
- Alaska
- Florida
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
An additional nine states use a flat rate system, where all taxpayers pay the same percentage of their income. These states are:
- Colorado
- Illinois
- Indiana
- Kentucky
- Massachusetts
- Michigan
- North Carolina
- Pennsylvania
- Utah
The remaining 33 states, along with the District of Columbia, use a progressive tax scale similar to the one the IRS uses.
Maximize Your Tax Return
Understanding how the tax brackets for 2022 work can help you maximize your tax return and minimize your overall tax liability. You can use tax preparation software now to enter your anticipated information to estimate your tax liability now. Additionally, there are several ways you can file your taxes for free to help save you even more money.
Learn more about preparing your taxes with this tax guide.
