Federal Income Tax Bracket and Rates Guide for 2022 and 2023
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Income tax refers to a type of tax individuals and businesses must pay to the government. It should be filed annually. Currently, the U.S. has seven federal income tax rates — 10%, 12%, 22%, 24%, 32%, 35% and 37%. Each rate has a corresponding tax cost. That said, how much a person needs to pay depends on their income and filing status.
It’s also important to note that the Internal Revenue Service (IRS) makes adjustments annually to reflect inflation. For instance, 2022 and 2023 tax rates remain the same. However, 2023 taxable income brackets have changed.
Knowing how tax brackets work, how to calculate your tax dues and how to lower your tax bracket can help prepare your finances for your tax obligations and prevent you from missing tax deadlines.
2022 Federal Income Tax Brackets and Tax Rates
The lowest tax rate in 2022 is 10%, applicable to filers with the lowest income bracket. On the other hand, the highest earners per filing status have a tax rate of 37%. Use the tables below to see how the total tax owed varies per tax rate, income bracket and filing status.
Single Filers
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–10,275 | 10% of taxable income |
12% | $10,276–41,775 | $1,027.50 + 12% of the |
22% | $41,776–89,075 | $4,807.50 + 22% of the |
24% | $89,076–170,050 | $15,213.50 + 24% of the |
32% | $170,051–215,950 | $34,647.50 + 32% of the |
35% | $215,951–539,900 | $49,335.50 + 35% of the |
37% | More than $539,900 | $162,718 + 37% of the |
Married Individuals Filing Jointly
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–20,550 | 10% of the taxable income |
12% | $20,551–83,550 | $2,055 + 12% of the excess |
22% | $83,551–178,150 | $9,615 + 22% of the excess |
24% | $178,151–340,100 | $30,427 + 24% of the excess |
32% | $340,101–431,900 | $69,295 + 32% of the excess |
35% | $431,901–647,850 | $98,671 + 35% of the excess |
37% | More than $647,850 | $174,253.50 + 37% of the |
Married Individuals Filing Separately
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–10,275 | 10% of the taxable income |
12% | $10,276–41,775 | $1,027.50 + 12% of the |
22% | $41,776–89,075 | $4,807.50 + 22% of the |
24% | $89,076–170,050 | $15,213.50 + 24% of the |
32% | $170,051–215,950 | $34,647.50 + 32% of the |
35% | $215,951–323,925 | $49,335.50 + 35% of the |
37% | More than $323,925 | $87,126.75 + 37% of the |
Head of Household Filers
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–14,650 | 10% of the taxable income |
12% | $14,651–55,900 | $1,465 + 12% of the excess |
22% | $55,901–89,050 | $6,415 + 22% of the excess |
24% | $89,051–170,050 | $13,708 + 24% of the excess |
32% | $170,051–215,950 | $33,148 + 32 of the excess |
35% | $215,951–539,900 | $47,836 + 35% of the excess |
37% | More than $539,900 | $161,218.50 + 37% of the |
2023 Federal Income Tax Brackets and Tax Rates
Tax rate classifications for 2023 are the same as that of 2022, but taxable income brackets and total taxes owed are higher. The IRS adjusts tax brackets every year based on inflation.
The table below can give you an idea of how much your federal income tax may be for the tax year 2023.
Single Filers
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–11,000 | 10% of the taxable income |
12% | $11,001–44,725 | $1,100 + 12% of the excess |
22% | $44,726–95,375 | $5,147 + 22% of the excess |
24% | $95,376–182,100 | $16,290 + 24% of the excess |
32% | $182,101–231,250 | $37,104 + 32% of the excess |
35% | $231,251–578,125 | $52,832 + 35% of the excess |
37% | More than $578,125 | $174,238.25 + 37% of the |
Married Individuals Filing Jointly
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–22,000 | 10% of the taxable income |
12% | $22,000–89,450 | $2,200 + 12% of the excess |
22% | $89,451–190,750 | $10,294 + 22% of the excess |
24% | $190,751–364,200 | $32,580 + 24% of the excess |
32% | $364,201–462,500 | $74,208 + 32% of the excess |
35% | $462,501-693,750 | $105,664 + 35% of the excess |
37% | More than $693,750 | $186,601.50 + 37% of the |
Married Individuals Filing Separately
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–11,000 | 10% of the taxable income |
12% | $11,001–44,725 | $1,100 + 12% of the excess |
22% | $44,726–95,375 | $5,147 + 22% of the excess |
24% | $95,376–182,100 | $16,290 + 24% of the excess |
32% | $182,101–231,250 | $37,104 + 32% of the excess |
35% | $231,251–346,875 | $52,832 + 35% of the excess |
37% | More than $346,875 | $93,300.75 + 37% of the |
Head of Household Filers
Tax Rate | Taxable Income Bracket | Total Tax Owed |
|---|---|---|
10% | $0–15,700 | 10% of the taxable income |
12% | $15,701–59,850 | $1,570 + 12% of the excess |
22% | $59,851–95,350 | $6,868 + 22% of the excess |
24% | $95,351–182,100 | $14,678 + 24% of the excess |
32% | $182,101–231,250 | $35,498 + 32% of the excess |
35% | $231,251–578,100 | $51,226 + 35% of the excess |
37% | More than $578,100 | $172,623.50 + 37% of the |
What Are Tax Brackets and How Do They Work?
The U.S. implements a progressive tax system for federal income taxes. That means high-income individuals in the country tend to pay more taxes than low-income individuals. This system’s idea is to distribute the tax burden across all income levels properly.
The progressive tax system uses marginal tax rates or brackets to determine the rate applied to a range of taxable income. As the taxable income increases, the marginal tax rate also goes up. The taxable income range varies per year as the IRS considers inflation. Adjustments are often made before the start of a new tax year.
Calculating your income tax based on your taxable income bracket can be confusing. You can use the total income tax owed presented in the 2022 Federal Income Tax Brackets and Tax Rates tables for your calculation.
Let’s say a single filer has a taxable income of $60,000 for 2022. Their marginal tax bracket is 22%. However, this doesn’t mean they’ll have to pay 22% of their $60,000 income, which is $13,200. Following the formula below, you can determine the total tax owed:
Formula: 2022 total tax owed ($4,807.50) + 22% of the excess over $41,775
For a more detailed calculation, you can follow the steps below. Keep in mind that federal income taxes aren’t your only obligations. You may need to file other types of federal and state taxes. If you find the calculations challenging, consider hiring a tax professional or using online tax software.
Calculate your taxable income
Your taxable income is the amount you’ve earned throughout the year minus any applicable deductions and exemptions.
Determine your tax bracket
The tax bracket determines your tax rate, which is the percentage used for calculating the total tax you owe. For the given example, the filer’s total taxable income for 2022 is $60,000. Therefore, their marginal tax bracket is 22%, the third bracket in the table above.
Start your calculations from the first tax rate bracket to your actual tax rate bracket
Once you know your tax bracket, you can proceed with the calculation. You start with the first bracket, which has a 10% tax rate. Move up to your actual tax rate, considering the excess amount per bracket.
For better visualization of the formula, go back to the example given earlier. Since the filer’s taxable income moves them up to 22%, they’ll determine their tax obligation using the taxes from the first three brackets.
Tax Bracket | Calculation | Tax Owed |
|---|---|---|
10% | $10,275 x 10% | $1,027.50 |
12% | ($41,775 - $10,275) x 12% | $3,780 |
22% | ($60,000-$41,775) x 22% | $4,009.50 |
Total Income Tax | $8,817 |
Another way of getting an accurate estimate of your income tax is to use an income tax calculator. MoneyGeek’s online tool allows you to determine how much you have to pay. Simply type in your income and choose your filing status using the dropdown menu below.
How to Get Into a Lower Tax Bracket
Depending on how much you earn, your income tax amount can be a bit high. Fortunately, there are ways for you to lower your income tax. You can either reduce your taxable income and lower your tax bracket using tax deductions or lower your tax bill with the help of tax credits. If you’re qualified, you may apply both methods.
Tax deductions
If you want to reduce your total taxable income, check if you’re eligible for tax deductions. Deductions typically reduce the income by one dollar for every dollar of qualified deduction.
Tax credits
Unlike tax deductions, credits can’t lower your tax bracket. Instead, they’re directly subtracted from your tax bill. Tax credits can lower your tax amount by one dollar for every dollar of tax credit and may be refundable. Among the most common tax credits are adoption, child tax, child and dependent care and earned income tax credits.
Expert Insight on Federal Income Tax
Proper management of taxes can help you save money and prevent serious repercussions. MoneyGeek spoke with academics and industry experts to share some insights on federal income tax.
- What tools/resources can you share to help taxpayers better manage their federal income tax?
- What’s the best way to reduce tax income bills?
- What are the repercussions of underpayment or late payment of federal income tax? How is the penalty determined/calculated?
Professor of Accounting, Darla Moore School of Business at the University of South Carolina
Managing Director, Tax Practice at Baker Newman Noyes
Assistant Professor of Accounting at Trine University
Associate Dean of the Business School at Western Colorado University
Associate Professor of Accounting at Stetson University
Principal, Small Business Advisory at The Bonadio Group
Associate Professor of Accounting at Texas Christian University
International Lawyer, CEO and Legal Board Advisor at LLC.Services
Associate Teaching Professor for Accounting and Finance at the University of Massachusetts Dartmouth
Associate Professor of Accounting, LaPenta School of Business of Iona University
Resources on Taxes
Dealing with taxes can be challenging, but finding the right resources can help you make informed decisions. MoneyGeek listed down some resources you may find helpful as you navigate through your federal income taxes.
- Free File: Prepare and file your tax return using the IRS Free File. Use the free fillable forms or get help from IRS partner sites.
- Get Ready: Learn how to properly file your taxes with the help of this step-by-step guide from the IRS.
- Peter G. Peterson Foundation: Access resources to help you better understand the U.S. tax system and how it works.
- State Government Websites: Find your state and access official websites to learn more about individual and business taxation in your area.
- Tax Calendars: Avoid missed tax filings and note important deadlines.
- Tax Foundation: Get updates on tax changes, state and federal.
About Nathan Paulus
sources
- Internal Revenue Service. "Tax Rate and Filing Status – Individual Complete Report (Publication 1304), Table 3.4." Accessed December 27, 2022.
- Internal Revenue Service. "Tax Forms and Instructions (2022 Adjusted Items)." Accessed December 28, 2022.
- Internal Revenue Service. "Tax Forms and Instructions (2023 Adjusted Items)." Accessed December 28, 2022.
- Self. "Life of Tax: What Americans will Pay in Taxes Over a Lifetime." Accessed December 27, 2022.
- United States Census Bureau. "Income in the United States: 2021." Accessed December 27, 2022.