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  1. Taxes
  2. Tax Returns

2022 Tax Brackets: How Record-Breaking Inflation Will Affect Your Taxes

By: Julia Glum
Julia Glum, expert in the IRS, taxes, credit scores, saving, colleges, mobile payment apps, and News Editor at Money
Julia Glum
News Editor | Joined February 2018
A graduate of the University of Florida, Julia has more than five years of experience in personal finance journalism. In addition to overseeing news coverage, she leads Money’s tax coverage, which includes extensive reporting on tax credits, policy changes and the IRS.
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Published: Nov 11, 2021 4 min read
Photo collage of a 1040 Income Tax Return Form and an office printing calculator with coins and dollar bills in the background
Money; Getty Images

The U.S. is experiencing its highest inflation in 30 years, and the IRS is taking notice.

The federal agency announced Wednesday that it's adjusting the standard deduction, income tax rates and dozens of other tax provisions for 2022.

Because of the way tax filing years work, the changes affect the tax returns most Americans will submit in spring 2023. (The IRS issues these adjustments every fall, so the announcement is normal even though current inflation rates are certainly not.)

For 2022, the standard deduction will be $12,950 for single filers, an increase of $400 from 2021. It's likely this decision will affect you: Ever since the Tax Cuts and Jobs Act passed in 2017, an estimated 90% of households take the standard deduction instead of itemizing their taxes.