Here Are the Federal Income Tax Brackets for This Year
Americans' tax refunds — and, for that matter, tax bills — this filing season are based on seven tax brackets, which determine where their top tax rate falls.
Tax brackets dictate how much you'll pay on each part of your taxable income for the year. They're not set in stone: Each year, the IRS adjusts the thresholds for its brackets based on an inflation index. These adjustments mean Americans don't end up having to pay higher tax rates simply because their wages have grown along with rising prices.
The IRS also makes inflation adjustments to the standard deduction, which is a set amount of income that you don’t need to pay federal taxes on. Most taxpayers take the standard deduction, though there's a fairly small camp of people who itemize.
Here's what you need to know for this year and next.
Tax brackets for 2022
It's important to remember that because the U.S. has a graduated-rate structure, your top rate isn't the the percentage you pay for all your income. You only pay that top rate for the amount of taxable income you make above the bracket threshold.
For 2022, the lowest tax rate, 10%, applies to your first $10,275 of taxable income if you're a single filer. At the top end of the brackets, single filers owe the max rate of 37% for taxable income above $539,900 in 2022.
The standard deduction is $12,950 for single filers and $25,900 for married couples filing jointly.
| 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% | $539,900 and up | $647,850 and up |
| Source: IRS |
Tax brackets for 2023
At the start of this year, you may have noticed that your paycheck got a bit larger as a result of the IRS's inflation adjustments for 2023 (those are the taxes you'll file next spring). While the tax rates are identical for 2022 and 2023, the IRS increased the income thresholds that determine your bracket by about 7% for 2023.
The IRS also raised the standard deduction for 2023, increasing it to $13,850 for single filers and $27,700 for married couples filing jointly.
Basically: If your income doesn't change between 2022 and 2023 — and assuming all else stays the same — your 2023 tax bill will come out lower due to the changes, or your refund will be larger. It's also possible you'll move into a lower bracket if you were just above a cutoff.
| tax rate | single filers | married filing jointly | |
| 1 | 10% | $0 to $11,000 | $0 to $22,000 |
| 2 | 12% | $11,000 to $44,725 | $22,000 to $89,450 |
| 3 | 22% | $44,725 to $95,375 | $89,450 to $190,750 |
| 4 | 24% | $95,375 to $182,100 | $190,750 to $364,200 |
| 5 | 32% | $182,100 to $231,250 | $364,200 to $462,500 |
| 6 | 35% | $231,250 to $578,125 | $462,500 to $693,750 |
| 7 | 37% | $578,125 and up | $693,750 and up |
| Source: IRS |
More details regarding the tax bracket adjustments are available on the IRS website.
More from Money:
2023 Tax Brackets: You Might Owe the IRS Less Next Year Thanks to Inflation
2022 Tax Brackets: How Record-Breaking Inflation Will Affect Your Taxes