2022 Tax Changes: IRS Issues Inflation Adjustments

Here's a rundown of changes to limits and thresholds on some well-known tax provisions for the 2022 tax year.
Never Mind Tax Reform — What's Different When I File This Year?

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Each year, the IRS does some tinkering and adjusting to various tax income thresholds and tax rate schedules. This is, by and large, a good thing — it can help to prevent the phenomenon known as "bracket creep," where inflation pushes a taxpayer into a higher tax bracket. Knowing what those annual adjustments are could also help you to plan ahead.

Here's a quick overview of some changes for the 2022 tax year, which will affect the tax return you'll file in 2023.

Tax brackets and tax rates

There are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your tax bracket is determined by your taxable income and filing status. For the 2022 tax year, the IRS bumped up the income thresholds for all filing statuses to account for inflation. You can compare the changes between 2021 and 2022 below.

2021 federal income tax brackets

(for taxes due in April 2022 or in October 2022 with an extension)

Expand the filing status that applies to you.

Single filers

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $9,950

10% of taxable income

12%

$9,951 to $40,525

$995 plus 12% of the amount over $9,950

22%

$40,526 to $86,375

$4,664 plus 22% of the amount over $40,525

24%

$86,376 to $164,925

$14,751 plus 24% of the amount over $86,375

32%

$164,926 to $209,425

$33,603 plus 32% of the amount over $164,925

35%

$209,426 to $523,600

$47,843 plus 35% of the amount over $209,425

37%

$523,601 or more

$157,804.25 plus 37% of the amount over $523,600

Married, filing jointly

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $19,900

10% of taxable income

12%

$19,901 to $81,050

$1,990 plus 12% of the amount over $19,900

22%

$81,051 to $172,750

$9,328 plus 22% of the amount over $81,050

24%

$172,751 to $329,850

$29,502 plus 24% of the amount over $172,750

32%

$329,851 to $418,850

$67,206 plus 32% of the amount over $329,850

35%

$418,851 to $628,300

$95,686 plus 35% of the amount over $418,850

37%

$628,301 or more

$168,993.50 plus 37% of the amount over $628,300

Married, filing separately

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $9,950

10% of taxable income

12%

$9,951 to $40,525

$995 plus 12% of the amount over $9,950

22%

$40,526 to $86,375

$4,664 plus 22% of the amount over $40,525

24%

$86,376 to $164,925

$14,751 plus 24% of the amount over $86,375

32%

$164,926 to $209,425

$33,603 plus 32% of the amount over $164,925

35%

$209,426 to $314,150

$47,843 plus 35% of the amount over $209,425

37%

$314,151 or more

$84,496.75 plus 37% of the amount over $314,150

Head of household

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $14,200

10% of taxable income

12%

$14,201 to $54,200

$1,420 plus 12% of the amount over $14,200

22%

$54,201 to $86,350

$6,220 plus 22% of the amount over $54,200

24%

$86,351 to $164,900

$13,293 plus 24% of the amount over $86,350

32%

$164,901 to $209,400

$32,145 plus 32% of the amount over $164,900

35%

$209,401 to $523,600

$46,385 plus 35% of the amount over $209,400

37%

$523,601 or more

$156,355 plus 37% of the amount over $523,600

2022 federal income tax brackets

(for taxes due in April 2023)

Expand the filing status that applies to you.

Single filers

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $10,275

10% of taxable income

12%

$10,276 to $41,775

$1,027.50 plus 12% of the amount over $10,275

22%

$41,776 to $89,075

$4,807.50 plus 22% of the amount over $41,775

24%

$89,076 to $170,050

$15,213.50 plus 24% of the amount over $89,075

32%

$170,051 to $215,950

$34,647.50 plus 32% of the amount over $170,050

35%

$215,951 to $539,900

$49,335.50 plus 35% of the amount over $215,950

37%

$539,901 or more

$162,718 plus 37% of the amount over $539,900

Married, filing jointly

Tax rate

Taxable income bracket

Taxes owed

10%

$0 to $20,550

10% of taxable income

12%

$20,551 to $83,550

$2,055 plus 12% of the amount over $20,550

22%

$83,551 to $178,150

$9,615 plus 22% of the amount over $83,550

24%

$178,151 to $340,100

$30,427 plus 24% of the amount over $178,150

32%

$340,101 to $431,900

$69,295 plus 32% of the amount over $340,100

35%

$431,901 to $647,850

$98,671 plus 35% of the amount over $431,900

37%

$647,851 or more

$174,253.50 plus 37% of the amount over $647,850

Married, filing separately

Tax rate

Taxable income bracket

Taxes owed

10%

$0 to $10,275

10% of taxable income

12%

$10,276 to $41,775

$1,027.50 plus 12% of the amount over $10,275

22%

$41,776 to $89,075

$4,807.50 plus 22% of the amount over $41,775

24%

$89,076 to $170,050

$15,213.50 plus 24% of the amount over $89,075

32%

$170,051 to $215,950

$34,647.50 plus 32% of the amount over $170,050

35%

$215,951 to $323,925

$49,335.50 plus 35% of the amount over $215,950

37%

$323,926 or more

$87,126.75 plus 37% of the amount over $323,925

Head of household

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $14,650

10% of taxable income

12%

$14,651 to $55,900

$1,465 plus 12% of the amount over $14,650

22%

$55,901 to $89,050

$6,415 plus 22% of the amount over $55,900

24%

$89,051 to $170,050

$13,708 plus 24% of the amount over $89,050

32%

$170,051 to $215,950

$33,148 plus 32% of the amount over $170,050

35%

$215,951 to $539,900

$47,836 plus 35% of the amount over $215,950

37%

$539,901 or more

$161,218.50 plus 37% of the amount over $539,900

» MORE: The U.S has a progressive tax system. Learn what that means and how taxes are calculated.

Standard deduction

The standard deduction reduces your taxable income. For the 2022 tax year, the standard deduction will increase to $12,950 for single filers and married filers filing separately, $25,900 for married filers filing jointly and $19,400 for heads of household.

The standard deduction is also $1,350 higher for those who are over 65 or blind and $1,650 higher if also unmarried and not a surviving spouse in 2021. For the 2022 tax year, this rises to $1,400 higher for those over 65 and $1,750 higher if also unmarried and not a surviving spouse.

Filing status

2021 tax year

2022 tax year

Single

$12,550

$12,950

Married, filing jointly

$25,100

$25,900

Married, filing separately

$12,550

$12,950

Head of household

$18,800

$19,400

» Need help deciding whether to itemize or take the standard deduction? Learn about the differences.

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Capital gains tax

Capital gains taxes are assessed on profits generated from the sale of an asset. Short-term gains are taxed as ordinary income, while long-term gains are charged at either 0%, 15% or 20% based on filing status and taxable income. For the 2022 tax year, the IRS increased these income thresholds for long-term gains. See the differences below.

2021 capital gains tax rates

Tax-filing status

Single

Married, filing jointly

Married, filing separately

Head of household

0%

$0 to $40,400

$0 to $80,800

$0 to $40,400

$0 to $54,100

15%

$40,401 to $445,850

$80,801 to $501,600

$40,401 to $250,800

$54,101 to $473,750

20%

$445,851 or more

$501,601 or more

$250,801 or more

$473,751 or more

Short-term capital gains are taxed as ordinary income according to federal income tax brackets.

2022 capital gains tax rates

Tax-filing status

Single

Married, filing jointly

Married, filing separately

Head of household

0%

$0 to $41,675

$0 to $83,350

$0 to $41,675

$0 to $55,800

15%

$41,676 to $459,750

$83,351 to $517,200

$41,676 to $258,600

$55,801 to $488,500

20%

$459,751 or more

$517,201 or more

$258,601 or more

$488,501 or more

Short-term capital gains are taxed as ordinary income according to federal income tax brackets.

Earned income tax credit

The earned income tax credit (EIC or EITC) is a refundable tax credit for low- and moderate-income workers. The amount depends on income and the number of children. People without kids can qualify. For 2022, the earned income credit range will be $560 to $6,935, depending on income and the number of children.

An important note: You may notice that the credit available to persons with no children has significantly decreased in 2022. This is because the American Rescue Plan Act temporarily boosted it from $543 to $1,502 in 2021; this expansion has not been carried over to the 2022 tax year.

2021 earned income tax credit

Number of children

Maximum earned income tax credit

Max AGI, single or head of household filers

Max AGI, married joint filers

0

$1,502

$21,430

$27,380

1

$3,618

$42,158

$48,108

2

$5,980

$47,915

$53,865

3 or more

$6,728

$51,464

$57,414

2022 earned income tax credit

Number of children

Maximum earned income tax credit

Max AGI, single or head of household filers

Max AGI, married joint filers

0

$560

$16,480

$22,610

1

$3,733

$43,492

$49,622

2

$6,164

$49,399

$55,529

3 or more

$6,935

$53,057

$59,187

Retirement plan contribution and income limits

Contributing to an IRA or a 401(k) can cut your tax bill significantly, and the amount you can contribute has increased for 2022. It's important to note that traditional IRA income limits apply only if you (or your spouse) have a retirement account at work.

Traditional IRA income limits

Filing status

2021 MAGI

2022 MAGI

Deduction limit

Single or head of household (and covered by retirement plan at work)

$66,000 or less

$68,000 or less

Full deduction

More than $66,000 but less than $76,000

More than $68,000 but less than $78,000

Partial deduction

$76,000 or more

$78,000 or more

No deduction

Married filing jointly (and covered by retirement plan at work)

$105,000 or less

$109,000 or less

Full deduction

More than $105,000 but less than $125,000

More than $109,000 but less than $129,000

Partial deduction

$125,000 or more

$129,000 or more

No deduction

Married filing jointly (spouse covered by retirement plan at work)

$198,000 or less

$204,000 or less

Full deduction

More than $198,000 but less than $208,000

More than $204,000 but less than $214,000

Partial deduction

$208,000 or more

$214,000 or more

No deduction

Married filing separately (you or spouse covered by retirement plan at work)

Less than $10,000

Less than $10,000

Partial deduction

$10,000 or more

$10,000 or more

No deduction

Roth IRA income limits

Filing status

2021/2022 MAGI

Maximum annual contribution

Single, head of household or married filing separately (if you didn't live with spouse during year)

2021: Less than $125,000

2022: Less than $129,000

$6,000 ($7,000 if 50 or older)

2021: $125,000 up to $140,000

2022: $129,000 up to $144,000

Contribution is reduced

2021: $140,000 or more

2022: $144,000 or more

No contribution allowed

Married filing jointly or qualifying widow(er)

2021: Less than $198,000

2022: Less than $204,000

$6,000 ($7,000 if 50 or older)

2021: $198,000 up to $208,000

2022: $204,000 up to $214,000

Contribution is reduced

2021: $208,000 or more

2022: $214,000 or more

No contribution allowed

Married filing separately (if you lived with spouse at any time during year)

2021: Less than $10,000

2022: Less than $10,000

Contribution is reduced

2021: $10,000 or more

2022: $10,000 or more

No contribution allowed

401(k) income limits

In 2022, individuals under the age of 50 can contribute $20,500. This is up from $19,500 in 2021. For those 50 or older, the catch-up contribution limit in 2022 is up to $27,000 from $26,000 in 2021.

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