The Internal Revenue Service (IRS) has announced its annual inflation adjustments for the 2022 tax year. The adjustments see increases in things like the marginal tax rate as well as the standard deduction. We’ve listed the most prominent changes below, which the IRS notes “generally apply to tax returns filed in 2023.”
Top marginal tax rates, single filers:
- For incomes over $215,950 is 35%
- For income over $170,050 is 32%
- For income over $89,075 is 24%
- For income over $41,775 is 22%
- For income over $10,275 is 12%
The top marginal tax rate for single filers making over $539,900 remains 37%.
Top marginal tax rates, married filing jointly:
- For incomes over $431,900 is 35%
- For income over $340,100 is 32%
- For income over $178,150 is 24%
- For income over $83,550 is 22%
- For income over $20,550 is 12%
The top marginal tax rate for married couples filing jointly making over $647,850 remains 37%.
Other inflationary tax rate changes:
- The standard deduction for married couples filing jointly is $25,900 (an $800 increase).
- The standard deduction for single filers is $12,950 (a $400 increase).
- The maximum Earned Income Tax Credit amount is $6,935 (a $207 increase).
You can check out all the other tax rate changes for tax year 2022 in the news release here.