The tax rates depends on your filing status and the taxable income reported for the year. For the 2022 tax year — which is when you file your tax return next spring — the tax cap is rising to reflect the highest annual inflation rate in decades.
Tax brackets allow you to determine how much tax rates you must pay for the year. Below is a guide to the tax brackets for the 2022 and 2021 tax years and how to calculate the tax brackets that apply to your taxable income.
2021 income tax rates brackets (now deferred until October 2022)
There are seven federal tax brackets for tax year 2021: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your tax filing status and taxable income (such as wages) determine which category you fall into.
Tax brackets for single filers in 2021
2021 Married Filing Separately tax rates Brackets
2021 Head of Household Tax Brackets
2021 Married Filing Jointly Tax Brackets
2022 income tax brackets (tax deferrals due April 2023 or October 2023)
There are also seven federal tax brackets for tax year 2022: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your tax bracket depends on your filing status and 2022 taxable income.
Tax brackets for single filers in 2022
2022 Married Filing Separately Tax Brackets
2022 Head of Household Tax Brackets
2022 Married Filing Jointly Tax Brackets
What is a tax bracket?
The IRS creates tax rates brackets to determine how much you must pay the IRS each year.
The tax you need to pay depends on your income. If your taxable income increases, so does the tax you pay.
But figuring out your tax liability isn’t as easy as comparing your salaries using the brackets shown above.
How to determine your tax bracket
You can calculate your tax bracket by dividing your taxable income into each applicable bracket. Each category has its own tax rate. The group you are in also depends on your registration status: whether you are a single parent, married, registered together, married, registered alone, or head of household.
The tax bracket your highest dollar falls into is your marginal tax bracket. This tax bracket represents the highest tax rate – applicable to the top half of your income.
- The first $10,275 is taxed at 10%: $1,027.50.
- The next $31,500 (41,775-10,275) is taxed at 12%: $3,780.
- Final $33,225 (75,000-41,775) taxed at 22% of $7,309.50
- Your total tax on your $75,000 income is $1,027.50 + $3,780 + $7,309.50 = $12,117 (excluding any personal or standard deductions that apply to your taxes).
This puts you in a lower tax bracket
You can lower your income to another tax bracket by using tax deductions such as B. Amortization of charitable donations, property taxes, and mortgage interest. Deductions help lower your taxes by reducing your taxable income.
Tax credits like the employee tax credit or the child tax credit can also put you in a lower tax bracket. They allow you to reduce the tax you owe on a dollar-for-dollar basis.