As the 2021 tax season comes to a close, it’s time to start thinking about the 2022-2023 tax brackets and federal income tax rates. The Internal Revenue Service (IRS) sets the tax brackets and rates each year, and they can change from year to year. It’s important to stay up to date on the latest tax information so you can plan ahead and make sure you’re paying the right amount of taxes.
The 2022-2023 tax brackets and federal income tax rates are based on the Tax Cuts and Jobs Act of 2017. This act made significant changes to the tax code, including reducing the number of tax brackets from seven to four. The four tax brackets are 10%, 12%, 22%, and 24%. The tax rate for each bracket is based on your taxable income.
For single filers, the 10% tax bracket applies to taxable income up to $9,950. The 12% tax bracket applies to taxable income between $9,951 and $40,525. The 22% tax bracket applies to taxable income between $40,526 and $86,375. The 24% tax bracket applies to taxable income between $86,376 and $164,925. For married filing jointly, the 10% tax bracket applies to taxable income up to $19,900. The 12% tax bracket applies to taxable income between $19,901 and $81,050. The 22% tax bracket applies to taxable income between $81,051 and $172,750. The 24% tax bracket applies to taxable income between $172,751 and $329,850.
In addition to the tax brackets, the IRS also sets the federal income tax rates. The federal income tax rate for single filers is 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For married filing jointly, the federal income tax rate is 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
It’s important to note that the 2022-2023 tax brackets and federal income tax rates are subject to change. The IRS may adjust the tax brackets and rates in the future, so it’s important to stay up to date on the latest tax information.
By understanding the 2022-2023 tax brackets and federal income tax rates, you can plan ahead and make sure you’re paying the right amount of taxes. Knowing the tax brackets and rates can also help you make informed decisions about your finances and investments.
