It’s tax season! So, as you gather documents for your tax preparer or sit down to file your own return, you’re probably wondering how big your tax bill will be this year. That’s going to depend in large part on which of the seven federal tax brackets you fall into for the 2022 tax year.
Which tax bracket you’re in depends on your taxable income and filing status. Each of the federal income tax brackets are also tied to one of the seven different federal income tax rates. But if you’re in a higher tax bracket, that doesn’t mean all of your income is taxed at the bracket’s corresponding tax rate. As discussed further below, only that portion of your taxable income that falls within each bracket is taxed at the tax rate tied to that bracket. As a result, if you’re in the highest tax bracket, any taxable income below that bracket’s threshold amount for your filing status will be taxed at lower federal income tax rates.
If you’re trying to determine how much you’ll owe the Internal Revenue Service (IRS), read on. We’ll lay out the seven tax brackets for 2022 and 2023 in easy-to-understand tables, provide mathematical examples of how those brackets work, and explain how to get a clearer understanding of what you owe with effective tax rates.
Federal Income Tax Rates for 2022
A progressive tax system administered by the IRS is used to generate revenue from U.S. taxpayers. Basically, that means you pay income tax at a higher rate as your income increases. This is different from a flat-rate tax system, which a growing number of states use, which applies a single tax rate to all taxpayers, regardless of their income.
While a flat-rate system is easier to understand and apply, many people believe a progressive tax system more fairly imposes income taxes across different income levels.
The U.S. tax code currently utilizes seven tax rates, but they have recently changed and are set to change again in a few years. Tax reform legislation passed in 2018 lowered the federal income tax rates associated with five of the seven tax brackets. Before the 2018 tax year, the federal tax rates were 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
Beginning with the 2018 tax year, the federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, these lower tax rates are scheduled to expire after 2025, at which time the pre-2018 tax rates will apply once again (although the scheduled reversion could be adjusted or repealed depending on how the political landscape looks after the 2024 elections).
Related: IRS Tax Form W-2: What You Need to Know
Federal Income Tax Brackets for 2022
Your federal income tax return for the 2022 tax year is due by April 18, 2023. The federal income tax brackets that apply to your 2022 tax return, based on the filing status you use—single, married filing separately, married filing jointly, surviving spouse, or head of household—are shown in the tables below.
The tables provide the tax rate, taxable income range, and tax calculation instructions for each tax bracket. So, once you know your 2022 filing status and taxable income, you can find the tax bracket—and highest tax rate—that applies to you.
2022 Tax Brackets for Single Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of amount over $170,050 |
| 35% | $215,951 to $539,900 | $49,335.50 plus 35% of amount over $215,950 |
| 37% | $539,901 or more | $162,718 plus 37% of amount over $539,900 |
2022 Tax Brackets for Married Couples Filing Jointly and Surviving Spouses
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $20,550 | 10% of taxable income |
| 12% | $20,551 to $83,550 | $2,055 plus 12% of amount over $20,550 |
| 22% | $83,551 to $178,150 | $9,615 plus 22% of amount over $83,550 |
| 24% | $178,151 to $340,100 | $30,427 plus 24% of amount over $178,150 |
| 32% | $340,101 to $431,900 | $69,295 plus 32% of amount over $340,100 |
| 35% | $431,901 to $647,850 | $98,671 plus 35% of amount over $431,900 |
| 37% | $647,851 or more | $174,253.50 plus 37% of amount over $647,850 |
2022 Tax Brackets for Married Couples Filing Separately
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of amount over $170,050 |
| 35% | $215,951 to $323,925 | $49,335.50 plus 35% of amount over $215,950 |
| 37% | $332,925 or more | $87,126.75 plus 37% of amount over $323,925 |
2022 Tax Brackets for Head-of-Household Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $14,650 | 10% of taxable income |
| 12% | $14,651 to $55,900 | $1,465 plus 12% of amount over $14,650 |
| 22% | $55,901 to $89,050 | $6,415 plus 22% of amount over $55,900 |
| 24% | $89,051 to $170,050 | $13,708 plus 24% of amount over $89,050 |
| 32% | $170,051 to $215,950 | $33,148 plus 32% of amount over $170,050 |
| 35% | $215,951 to $539,900 | $47,836 plus 35% of amount over $215,950 |
| 37% | $539,900 or more | $161,218.50 plus 37% of amount over $539,900 |
Related: MACRS Depreciation, Table & Calculator
How Do the Tax Brackets Work?
Many people think that all their income is taxed at the rate tied to their tax bracket. However, that’s not how the federal income tax brackets work. Instead, unless you’re in the 10% bracket, at least some of your income will be taxed at a lower tax rate than the rate connected to your tax bracket.
The U.S. tax code uses marginal tax rates, which basically means that only the income that falls within the taxable income range for each tax bracket is taxed at that bracket’s corresponding tax rate. Income below your marginal tax bracket is taxed at lower rates according to the income ranges for any lower tax bracket. As a result, marginal tax rates reduce income taxes for almost everyone.
Example
Nicholas is a single filer and has $50,000 of taxable income for the 2022 tax year. That puts him in the 22% tax bracket. However, he doesn’t owe 22% of $50,000, which would be $11,000 ($50,000 x .22 = $11,000). He actually owes less.
The first $10,275 of Nicholas’s income is taxed at the 10% marginal tax rate, which results in $1,027.50 of tax.
The next $31,500 of his income (i.e., from $10,276 to $41,775) is taxed at the 12% marginal tax rate, which adds $3,780 of tax.
And, finally, the remaining $8,225 of Nicholas’s income (i.e., from $41,776 to $50,000) is taxed at the 22% rate, which comes to $1,809.50 of tax.
As a result, Nicholas’s total tax, when all of the separate amounts are added up, comes to $6,617, which is $4,383 less than the $11,000 tax if a flat 22% applied to all his income.
You can also see this calculation method play out in the various federal income tax brackets shown above. You’ll notice that, except for the 10% tax bracket, the tax calculations always begin with a dollar amount that is added to the amount taxed at the bracket’s corresponding marginal tax rate. The dollar amounts represent the tax due on all taxable income in each lower tax bracket.
So, looking at the 22% tax bracket above for single filers, you can see that the tax on income from the 10% and 12% brackets for the 2022 tax year equals $4,807.50—which is exactly the amount calculated for Nicholas in the example above ($1,027.50 + $3,780 = $4,807.50). Then, to determine the total tax amount, the tax rate tied to the taxpayer’s tax bracket is applied to the remaining income (i.e., the amount over the previous bracket’s upper threshold). The resulting amount is added to the tax from the lower brackets.
It’s important to note, though, that the tax amount resulting from use of the tax brackets isn’t necessarily what you will owe the IRS when your tax return is finished. After the tax is calculated, your final tax bill could be lower once any tax credits, withheld taxes, or estimated tax payments are subtracted from the total.
In some cases, your credits, withholding, and estimated payments can surpass the amount calculated using the tax brackets, in which case you might be due a refund.
Notes on Tax Deductions vs. Tax Credits
Tax deductions, as opposed to tax credits, are applied before your taxable income is determined. As a result, tax deductions, including the standard deduction, won’t further reduce the income tax calculated using the seven federal tax brackets available for each filing status. In addition, tax credits result in a dollar-for-dollar reduction of your tax bill, while tax deductions only save you a percentage of each dollar equal to the marginal tax rate associated with your tax bracket.
As a result, tax credits are generally better than tax deductions.
Related: 9 Self-Employment Tax Deductions to Optimize Your Tax Return
What’s Your Effective Tax Rate?
There’s a different tax rate that you may have heard of: an effective tax rate. It refers to the percentage of your taxable income paid in income tax. Because use of marginal tax rates results in your income being taxed at different rates, it’s not necessarily the best indicator of your overall income tax burden. Many people believe using your effective tax rate provides a clearer picture.
To calculate your effective tax rate, divide your tax as calculated using the tax brackets or tax tables (Line 16 on your 2022 Form 1040) by your taxable income (Line 15 on your 2022 return). To illustrate using the example above, Nicholas’s effective tax rate is 13.2% ($6,617 ÷ $50,000 = 0.132), even though he falls within the 22% tax bracket.
2023 Federal Income Tax Brackets and Rates
Pat yourself on the back if you’re already wondering about the 2023 tax brackets and rates. Thinking ahead (i.e., “tax planning”) can save you a lot of money. Fortunately, the IRS has already released tax brackets for the 2023 tax year, which can be found below.
You’ll use the new tax brackets when you file your 2023 tax return, which will be due April 15, 2024, for most taxpayers (residents of Maine and Massachusetts will have until April 16). So, you can use these household tax brackets now to plan out any personal finance moves for this year that can lower your tax bill next year.
2023 Tax Brackets for Single Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $11,000 | 10% of taxable income |
| 12% | $11,001 to $44,725 | $1,100 plus 12% of amount over $11,000 |
| 22% | $44,726 to $95,375 | $5,147 plus 22% of amount over $44,725 |
| 24% | $95,376 to $182,100 | $16,290 plus 24% of amount over $95,375 |
| 32% | $182,101 to $231,250 | $37,104 plus 32% of amount over $182,100 |
| 35% | $231,251 to $578,125 | $52,832 plus 35% of amount over $231,250 |
| 37% | $578,125 or more | $174,238.25 plus 37% of amount over $578,125 |
2023 Tax Brackets for Married Couples Filing Jointly and Surviving Spouses
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $22,000 | 10% of taxable income |
| 12% | $22,001 to $89,450 | $2,200 plus 12% of amount over $22,000 |
| 22% | $89,451 to $190,750 | $10,294 plus 22% of amount over $89,450 |
| 24% | $190,751 to $364,200 | $32,580 plus 24% of amount over $190,750 |
| 32% | $364,201 to $462,500 | $74,208 plus 32% of amount over $364,200 |
| 35% | $462,501 to $693,750 | $105,664 plus 35% of amount over $462,500 |
| 37% | $693,751 or more | $186,601.50 plus 37% of amount over $693,750 |
2023 Tax Brackets for Married Couples Filing Separately
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $11,000 | 10% of taxable income |
| 12% | $11,001 to $44,725 | $1,100 plus 12% of amount over $11,000 |
| 22% | $44,726 to $95,375 | $5,147 plus 22% of amount over $44,725 |
| 24% | $95,376 to $182,100 | $16,290 plus 24% of amount over $95,375 |
| 32% | $182,101 to $231,250 | $37,104 plus 32% of amount over $182,100 |
| 35% | $231,251 to $346,875 | $52,832 plus 35% of amount over $231,250 |
| 37% | $346,876 or more | $93,300.75 plus 37% of amount over $346,875 |
2023 Tax Brackets for Head-of-Household Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $15,700 | 10% of taxable income |
| 12% | $15,701 to $59,850 | $1,570 plus 12% of amount over $15,700 |
| 22% | $59,851 to $95,350 | $6,868 plus 22% of amount over $59,850 |
| 24% | $95,351 to $182,100 | $14,678 plus 24% of amount over $95,350 |
| 32% | $182,101 to $231,250 | $35,498 plus 32% of amount over $182,100 |
| 35% | $231,251 to $578,100 | $51,226 plus 35% of amount over $231,250 |
| 37% | $578,101 or more | $172,623.50 plus 37% of amount over $578,100 |
Inflation Adjustments for 2023 Tax Brackets
You’ll notice that the tax rates for 2023 are the same as the rates for 2022: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the taxable income ranges for each federal income tax bracket are adjusted each year to account for inflation. As a result, the tax brackets for 2023 are different than the 2022 brackets.
In fact, the inflation adjustments for the 2023 brackets are more dramatic than what we’ve seen in recent years because of the higher costs for goods and services we’ve suffered through lately. This shows up in the form of larger increases to the “width” of the taxable income ranges than what we normally see. (The width of each range refers to the gap between the bracket’s lower and upper income thresholds.)
As an example, the 22% tax bracket for single filers applied to $45,850 of income for the 2021 tax year (i.e., the difference between $40,526 and $86,375), but applied to $47,300 of income for 2022 (i.e., the difference between $41,776 and $89,075). That’s an increase of 3.2% to the bracket’s width from 2021 to 2022. However, for the 2023 tax year, the 22% federal tax bracket for single taxpayers covers $50,650 of income ($44,726 to $95,375), which represents a 7.1% increase in the bracket’s width from 2022 to 2023—more than double the growth rate from the previous year.
But don’t be alarmed. Wider brackets are actually a good thing for many people with an income that’s growing slower than the rate of inflation, because it lessens the chance that they’ll be bumped up to a higher tax bracket (i.e., it reduces “bracket creep”).
For example, if Andrew, who is a single filer, sees his taxable income grow from $89,000 to $94,000 from 2022 to 2023, he is still going to be in the 22% bracket when he completes his 2023 tax return next year. However, if the bracket’s width increased by a more modest amount for 2023—say, by 4%—then Andrew would find himself in the 24% bracket, which would likely apply to single filers once 2023 income exceeds about $92,640. But remember: Only the portion of income in that particular tax bracket gets taxed at your marginal tax rate. So, Andrew’s effective tax rate wouldn’t materially increase as a result of a small portion of his income falling into a higher tax bracket.
Larger increases to the brackets’ width can also push you down to a lower tax bracket. For instance, if Andrew’s income rises from $42,000 to $44,000 from 2022 to 2023, he would drop from the 22% bracket to the 12% bracket for 2023. But, hypothetically, if the 22% bracket’s width increased by only 4% for 2023, then Andrew would remain in the 22% bracket for 2023, which would probably kick in right around the $43,450 mark.
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