Tax brackets for 2022
There are seven federal tax brackets for the 2022 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Every year the IRS modifies the tax brackets for inflation. Your specific bracket depends on your taxable income and filing status. These are the rates for taxes due in April 2023.
Retirement CalculatorMarginal tax rate
The marginal tax rate is the highest tax rate you have to pay for every additional dollar of income you earn. A 25% marginal tax rate means that you will pay 25 cents of every extra dollar you report on your earnings.
Effective Tax Rate
The effective tax rate is your total tax amount divided by your total earned income.
Single Filers Tax Brackets for 2022
| Tax rate | Taxable income bracket | Your taxes |
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $539,900 | $49,335.50 plus 35% of the amount over $215,950 |
| 37% | $539,901 or more | $162,718 plus 37% of the amount over $539,900 |
Married Filing Jointly Tax Brackets for 2022
| Tax rate | Taxable income bracket | Your taxes |
| 10% | $0 to $20,550 | 10% of taxable income |
| 12% | $20,551 to $83,550 | $2,055 plus 12% of the amount over $20,550 |
| 22% | $83,551 to $178,150 | $9,615 plus 22% of the amount over $83,550 |
| 24% | $178,151 to $340,100 | $30,427 plus 24% of the amount over $178,150 |
| 32% | $340,101 to $431,900 | $69,295 plus 32% of the amount over $340,100 |
| 35% | $431,901 to $647,850 | $98,671 plus 35% of the amount over $431,900 |
| 37% | $647,851 or more | $174,253.50 plus 37% of the amount over $647,850 |
Married Filing Separately Tax Brackets for 2022
| Tax rate | Taxable income bracket | Your taxes |
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $323,925 | $49,335.50 plus 35% of the amount over $215,950 |
| 37% | $323,926 or more | $87,126.75 plus 37% of the amount over $323,925 |
Head of Household Tax Brackets for 2022
| Tax rate | Taxable income bracket | Your Taxes |
| 10% | $0 to $14,650 | 10% of taxable income |
| 12% | $14,651 to $55,900 | $1,465 plus 12% of the amount over $14,650 |
| 22% | $55,901 to $89,050 | $6,415 plus 22% of the amount over $55,900 |
| 24% | $89,051 to $170,050 | $13,708 plus 24% of the amount over $89,050 |
| 32% | $170,051 to $215,950 | $33,148 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $539,900 | $47,836 plus 35% of the amount over $215,950 |
| 37% | $539,901 or more | $161,218.50 plus 37% of the amount over $539,900 |
2022 Standard Deduction
The amount of the standard deduction reduces your taxable income. Usually, the IRS adjusts the standard deduction for inflation every year.
When you file your taxes, you have the option to choose a standard deduction or itemized deductions. It only makes sense to itemize your deductions if their total value is higher than the standard deduction.
| Filing Status | Deduction Amount |
| Single | $12,950 |
| Married Filing Jointly | $25,900 |
| Head of Household | $19,400 |
Long-term capital gain taxes
You owe a capital gains tax on the profit made from selling capital assets such as stocks, options, bonds, real estate, and cryptocurrencies. Long-term capital gains have a more favorable tax treatment than your ordinary taxable income. To qualify for the long-term status, you must realize a profit on an investment after holding it for one calendar year or 365 days. Short-term capital gains are taxable as ordinary income
| Taxable Income Over | |||
| Tax Rate | Single | Married Filing Jointly | Head of Household |
| 0% | $0 | $0 | $0 |
| 15% | $41,675 | $83,350 | $55,800 |
| 20% | $459,750 | $517,200 | $488,500 |
Net Investment Income tax
Net Investment income tax of 3.8% applies to all taxpayers with net investment income above specific threshold amounts. In general, net investment income includes
- Long Term Capital gains
- Short capital gains
- Dividends
- Taxable interest
- Rental and royalty income
- Passive income from investments you don’t actively participate in
- Business income from trading financial instruments or commodities
- The taxable portion of nonqualified annuity payments
You will pay 3.8% of the smaller value between
- Your total net investment income, or
- the excess of modified adjusted gross income over the following threshold amounts:
- $200,000 for single and head of household filers
- $250,000 for married filing jointly or qualifying widow(er)
- $125,000 for married filing separately
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