New 2022 Tax Brackets: Changes Give You A Small Break

image

The IRS has raised the thresholds for federal tax brackets for income taxes and capital gains for 2022. That means many taxpayers with the same or even slighter higher income in 2022 vs. 2021 will still be in a lower bracket. They’ll be subject to lower tax bills.

Will you fall into a higher federal tax bracket in 2022? Check our comparative tables (below) to see how you’ll fare vs. 2021, no matter what your income level is.

If you are starting to gather paperwork for your 2021 return, of course you need to know what the brackets and rates are for 2021 taxes.

If you are turning your attention to tax planning for 2022, keep this in mind: Tax rates — as opposed to brackets — did not change compared to 2021. The IRS will use the same seven rates.

Tax Brackets: What’s New For 2022

2022 tax brackets did change.

That means in 2022 it will take higher income to become subject to each of the six higher tax brackets. That’s generally good for taxpayers.

The IRS adjusts the brackets to account for inflation.

Look at it this way: If your income stays the same in 2022 vs. 2021 and your 2021 income was just enough to reach any one of the six upper brackets, you’ll fall to a lower bracket in 2022.

To see where the thresholds are for each bracket in 2022 vs. 2021, compare the tables below.

Federal Tax Brackets For Ordinary Income: 2021 Vs. 2022

Compare 2021 federal tax brackets and tax rates to the 2022 tax brackets and their marginal tax rates. The 2021 brackets and rates are shown below.

2021 Federal Tax Brackets With Each Bracket’s Marginal Tax Rate, Based On A Taxpayer’s Taxable Income

Tax rate Single filers Married joint filers Heads of households
10% $0 – $9,950 $0 – $19,900 $0 – $14,200
12% $9,951 – $40,525 $19,901 – $81,050 $14,201 – $54,200
22% $40,526 – $86,375 $81,051 – $172,750 $54,201 – $86,350
24% $86,376 – $164,925 $172,751 – $329,850 $86,351 – $164,900
32% $164,926 – $209,425 $329,851 – $418,850 $164,901 – $209,400
35% $209,426 – $523,600 $418,851 – $628,300 $209,401 – $523,600
37% $523,601 or more $628,301 or more $523,601 or more

2022 Federal Tax Brackets With Each Bracket’s Marginal Tax Rate, Based On A Taxpayer’s Taxable Income

Tax rate Single filers Married joint filers
10% $0 – $10,275 $0 – $20,550
12% $10,276 – $41,775 $20,551 – $83,550
22% $41,776 – $89,075 $83,551 – $178,150
24% $89,076 – $170,050 $178,151 – $340,100
32% $170,051 – $215,950 $340-101 – $431,900
35% $215,951 – $539,900 $431,901 – $647,850
37% $539,901 or more $647,851 or more
Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More

  • 3 Medical Drug Stocks To Buy Now

    Featured Content Teva Pharmaceutical Industries Limited (TEVA) Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in generic and specialty medicines. The company provides a wide range of treatments... Read More

  • 3 Paper Product Stocks To Buy Now

    Featured Content AptarGroup Inc. (ATR) AptarGroup Inc. is a global leader in providing innovative dispensing and packaging solutions, serving diverse industries like beauty, personal care, and pharmaceuticals. They focus on... Read More

  • 3 Restaurant Stocks To Buy Now

    Featured Content Brinker International, Inc. (EAT) Brinker International, Inc. operates well-known restaurant brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company is a leader in the... Read More

  • 3 Investment Brokerage Stocks To Buy Now

    Featured Content Robinhood Markets, Inc. (HOOD) Robinhood Markets, Inc. is a financial services company known for its commission-free trading platform, which allows users to trade stocks, options, cryptocurrencies, and ETFs.... Read More

  • 3 Shipping Stocks To Buy Now

    Featured Content ZIM Integrated Shipping Services Ltd. (ZIM) ZIM Integrated Shipping Services Ltd. is a global container shipping company that provides cargo transportation services worldwide. The company operates a modern... Read More

  • 3 Mining Stocks To Buy Now

    Featured Content Perpetua Resources Corp. (PPTA) Perpetua Resources Corp. is a mining company focused on the exploration and redevelopment of the Stibnite Gold Project in Idaho, which is one of... Read More

  • 3 Airline Stocks To Buy Now

    Featured Content General Electric Company (GE) General Electric Company is a global industrial conglomerate with operations spanning sectors such as aviation, healthcare, power, and renewable energy. GE is known for... Read More