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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.

But that jump doesn't apply across the board. The 2022 standard deduction for heads of household — unmarried taxpayers with dependents — will be $19,400, a $600 hike, and $25,900 for married couples filing jointly, an $800 boost.

Federal income tax brackets and rates for 2022

The IRS also tweaked the marginal tax rates, often referred to as tax brackets, for the year ahead.

There are still seven brackets broken up by income. But the lowest tax bracket now includes single filers who earn up to $10,275 as well as joint filers who earn up to $20,550. They'll be taxed at 10%.

On the other end of the spectrum, the top tax rate is 37% for single filers who make over $539,900 and joint filers who make over $647,850.

How much to tax the highest-paid Americans has been the subject of much discussion since President Joe Biden proposed raising their taxes in his American Families Plan earlier this year. Biden pushed to increase the top individual income tax rate to 39.6%, the level at which it hovered before former President Donald Trump signed the Tax Cuts and Jobs Act, but hasn't secured congressional approval. When the TCJA provision sunsets in 2026, the rate will return to 39.6%.

You can see a full breakdown of the tax brackets for 2022 below. Head to the IRS website for more details on inflation adjustments.

2022 Tax Brackets
2022 tax rate single filers married filing jointly
1 10% $0 to $10,275 $0 to $20,550
2 12% $10,275 to $41,775 $20,550 to $83,550
3 22% $41,775 to $89,075 $83,550 to $178,150
4 24% $89,075 to $170,050 $178,150 to $340,100
5 32% $170,050 to $215,950 $340,100 to $431,900
6 35% $215,950 to $539,900 $431,900 to $647,850
7 37% over $539,900 over $647,850
Source: IRS

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