Luis Diaz Morales Federal Tax Brackets 2022, 2023
There are seven income tax brackets in the federal government. The tax rate you pay depends on your income and tax filing status.
The federal government offers seven income tax rates: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. Your taxable income and filing status determine the applicable tax brackets and rates.
It is important to note that the U.S. federal tax rates remain the same for both 2022 and 2023. However, the income thresholds used to determine the tax brackets are typically adjusted annually to account for inflation. These adjustments help ensure that taxpayers are not pushed into higher tax brackets as their living expenses increase.
To access the tax brackets for the federal income tax year 2023, as well as those applicable to 2021 and previous years, please refer to this page.
Tax brackets 2022
You can refer to the 2022 tax table for single filers to determine your tax bracket. These brackets are applicable for taxes due on April 18, 2023.
2022 tax table: 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. |
2022 tax table: 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. |
2022 tax table: 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. |
2022 tax table: 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. |
Tax brackets 2023
In the tax year 2023, there are seven tax rates to consider: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. These rates remain the same as for the 2022 tax year. Tax returns for the calendar year are due in April 2024, or in October 2024 if an extension is requested.
The income levels for tax brackets have been significantly adjusted due to increasing inflation and a high inflation rate in 2022. As a result, some individuals may find themselves in a lower income bracket compared to previous years.
2023 tax table: single filers
| Tax rate | Taxable income bracket | Tax owed |
| 10% | $0 to $11,000. | 10% of taxable income. |
| 12% | $11,001 to $44,725. | $1,100 plus 12% of the amount over $11,000. |
| 22% | $44,726 to $95,375. | $5,147 plus 22% of the amount over $44,725. |
| 24% | $95,376 to $182,100. | $16,290 plus 24% of the amount over $95,375. |
| 32% | $182,101 to $231,250. | $37,104 plus 32% of the amount over $182,100. |
| 35% | $231,251 to $578,125. | $52,832 plus 35% of the amount over $231,250. |
| 37% | $578,126 or more. | $174,238.25 plus 37% of the amount over $578,125. |
2023 tax table: married, filing jointly
| Tax rate | Taxable income bracket | Taxes owed |
| 10% | $0 to $22,000. | 10% of taxable income. |
| 12% | $22,001 to $89,450. | $2,200 plus 12% of the amount over $22,000. |
| 22% | $89,451 to $190,750. | $10,294 plus 22% of the amount over $89,450. |
| 24% | $190,751 to $364,200. | $32,580 plus 24% of the amount over $190,750. |
| 32% | $364,201 to $462,500. | $74,208 plus 32% of the amount over $364,200. |
| 35% | $462,501 to $693,750. | $105,664 plus 35% of the amount over $462,500. |
| 37% | $693,751 or more. | $186,601.50 + 37% of the amount over $693,750. |
2023 tax table: married, filing separately
| Tax rate | Taxable income bracket | Taxes owed |
| 10% | $0 to $11,000. | 10% of taxable income. |
| 12% | $11,001 to $44,725. | $1,100 plus 12% of the amount over $11,000. |
| 22% | $44,726 to $95,375. | $5,147 plus 22% of the amount over $44,725. |
| 24% | $95,376 to $182,100. | $16,290 plus 24% of the amount over $95,375. |
| 32% | $182,101 to $231,250. | $37,104 plus 32% of the amount over $182,100. |
| 35% | $231,251 to $346,875. | $52,832 plus 35% of the amount over $231,250. |
| 37% | $346,876 or more. | $93,300.75 plus 37% of the amount over $346,875. |
2023 tax table: head of household
| Tax rate | Taxable income bracket | Tax owed |
| 10% | $0 to $15,700. | 10% of taxable income. |
| 12% | $15,701 to $59,850. | $1,570 plus 12% of the amount over $15,700. |
| 22% | $59,851 to $95,350. | $6,868 plus 22% of the amount over $59,850. |
| 24% | $95,351 to $182,100. | $14,678 plus 24% of the amount over $95,350. |
| 32% | $182,101 to $231,250. | $35,498 plus 32% of the amount over $182,100. |
| 35% | $231,251 to $578,100. | $51,226 plus 35% of the amount over $231,250. |
| 37% | $578,101 or more. | $172,623.50 plus 37% of the amount over $578,100. |
What is the tax structure of income tax brackets?
The government determines the amount of tax you must pay by dividing your taxable income into segments, known as tax brackets, and each segment is taxed according to the corresponding tax rate. Some individuals may state that they are in the 12% or 22% tax bracket. However, this does not imply that all their earnings are taxed at that percentage. Instead, it refers to the highest tax rate, known as the marginal rate, which is applied to a portion of their income.
- Being “in” an income tax bracket does not mean that you have to pay federal tax on every dollar you earn. The U.S. operates on a progressive tax system, which means that different portions of your earnings fall into various tax brackets and are therefore taxed at different rates. This progressive tax structure results in individuals with higher taxable incomes being subject to higher rates of federal income tax, while those with lower taxable incomes can enjoy lower rates of federal income tax.
- The benefit of tax brackets is that, regardless of the bracket you’re in, you will not have to pay the highest tax rate on the entirety of your income.
- The amount of taxes you pay on your taxable income is known as your effective tax rate. To calculate your effective tax rate, you need to divide the amount of tax you owe (line 16 on Form 1040) by your total taxable income (line 15).
- The thresholds for income tax brackets are reviewed each year. A number of provisions in the code of taxation, such as the income thresholds that determine the tax brackets of the federal government, are adjusted annually to reflect the level of inflation. This method aims to prevent taxpayers from experiencing “bracket creep,” which occurs when they are pushed into a higher tax bracket due to inflation.
- This is only the case with federal taxes. State tax rates may differ in your state, either using brackets, implementing a flat tax, or having no brackets at all.
Example 1: Let’s assume that you are a single taxpayer with a taxable income of $32,000, which places you in the 12% tax bracket for 2022. However, do you have to pay 12% of the entire $32,000? No. In reality, you pay 10% on the first $10,000, and the tax rate of 12% applies only to the remaining amount. (Refer to the taxable brackets in the image above to observe the detailed breakdown.)
Example 2: If you had $50,000 of tax-deductible income, you would pay 10% on the first $10,275 and 12% on the portion of your income that falls between the $10,276 and $41,775 range. For the remaining amount, which falls within the 22% tax bracket, you would pay 22%. The total tax bill amounts to approximately $6,600, which is roughly one-third of your tax-deductible income, regardless of whether you fall into the 22 percent bracket. The effective tax rate, in this case, is 13%.
What is an average marginal rate of taxation?
A marginal tax is the rate of tax that you pay on the last dollar of tax-deductible income, and it is typically the most tax-efficient bracket.
For instance, if you’re a single taxpayer with taxable income of $35,000, which puts you in the 12% tax bracket, if your tax-deductible income increased by $1, you would also pay an additional 12% tax on that additional dollar.
If you earned $46,000 in tax-deductible income, the majority of it would fall within the 12% tax bracket. However, the last few hundred dollars would be subject to the higher tax rate of 22%. In this case, the marginal tax rate would be 22 percent.
How to enter the lower bracket of taxation, and pay a lower federal tax rate
Two popular ways to reduce the tax burden include deductions and credits.
- A tax credit could reduce taxes on a dollar-for-dollar basis. It doesn’t have an effect on the tax bracket you’re in.
- Tax deductibility, on the contrary, decreases the amount of your income that is taxed. In general, deductions reduce your taxable income by the amount of your highest federal tax bracket. For example, if you fall in the 22% tax bracket, a deduction of $1,000 could mean you save $220.
That’s right: Take advantage of all the tax deductions you can claim. They can lower the amount of tax you pay and move you into lower tax brackets, resulting in you paying less tax.
