What is the tax bracket for married filing jointly 2022

The Internal Revenue Service announced Wednesday higher federal income tax brackets and standard deductions for next year, which will be a welcomed cost of living adjustment for many Americans.

Why it matters: The new brackets for 2023 mean paychecks for many Americans could see a boost, which will help consumers who are being hit hard by inflation and aren't seeing raises that keep pace with price increases.

2022 tax brackets for individuals

Individual rates: Each of the tax brackets' income ranges jumped about 7% from last year's numbers. Here's a breakdown of last year's income and rates:

• $10,275 or less: 10% marginal rate
• $10,276 to $41,775: 12%
• $41,776 to $89,075: 22%
• $89,076 to $170,050: 24%
• $170,051 to $215,950: 32%
• $215,951 to $539,900: 35%
• $539,901 or more: 37%

2022 tax brackets for married couples

Married couples filing jointly brackets jumped about 7% as well. Here's a breakdown of last year's income and rates:

• $20,550 or less: 10% marginal rate
• $20,551 to $83,550: 12%
• $83,551 to $178,150: 22%
• $178,151 to $340,100: 24%
• $340,101 to $431,900: 32%
• $431,901 to $647,850: 35%
• $647,851 or more: 37%

2023 tax brackets and income

State of play: Inflation is hitting Americans hard right now. In September, consumer prices soared and were up 8.2% compared to a year before.

• By adjusting the tax brackets — as the IRS does every year — it is attempting to stop "bracket creep," which happens when inflation pushes taxpayers into a higher income tax bracket without an increase in real income.

Worth noting: The jump could have been higher if not for a tax overhaul signed by former President Trump in 2017, the New York Times reports.

• Republicans at the time tied the adjustments to the chained Consumer Price Index, which tends to rise at a slower pace than the standard CPI.
• In September, chained CPI grew 0.2 percentage points slower than the standard CPI compared to 2021.

Thought bubble via Axios' Emily Peck: These adjustments happen every year but are significant now due to inflation.

• Congress passed these adjustments the last time inflation was high decades ago. It is hard to imagine lawmakers joining together to enact this kind of policy now.

What they're saying: "Inflation adjustments to tax brackets mean that it will be harder for taxpayers to hit those higher brackets, and therefore will have more income taxed at lower rates next year," said Tim Steffen, director of tax planning with wealth management company Baird, in a statement.

Go deeper: IRS releases inflation-adjustments for next year's taxes

• How inflation can lower your taxes

Editor's note: This story was first published on Oct. 19, 2022.

Tax brackets for income earned in 2022

• 37% for incomes over $539,900 ($647,850 for married couples filing jointly)
• 35% for incomes over $215,950 ($431,900 for married couples filing jointly)
• 32% for incomes over $170,050 ($340,100 for married couples filing jointly)
• 24% for incomes over $89,075 ($178,150 for married couples filing jointly)
• 22% for incomes over $41,775 ($83,550 for married couples filing jointly)
• 12% for incomes over $10,275 ($20,550 for married couples filing jointly)
• 10% for incomes of $10,275 or less ($20,550 for married couples filing jointly

Married filing separately pay at same rate as unmarried. Source: Internal Revenue Service

Tax brackets for income earned in 2023

• 37% for incomes over $578,125 ($693,750 for married couples filing jointly)
• 35% for incomes over $231,250 ($462,500 for married couples filing jointly)
• 32% for incomes over $182,100 ($364,200 for married couples filing jointly)
• 24% for incomes over $95,375 ($190,750 for married couples filing jointly)
• 22% for incomes over $44,725 ($89,450 for married couples filing jointly)
• 12% for incomes over $11,000 ($22,000 for married couples filing jointly)
• 10% for incomes of $11,000 or less ($22,000 for married couples filing jointly)

Married filing separately pay at same rate as unmarried. Source: Internal Revenue Service

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In addition, the standard deduction will rise to $13,850 for single filers for the 202 3 tax year , from $12,950 the previous year. The standard deduction for couples filing jointly will rise to $27,700 in 2023, from $25,900 in the 2022 tax yea r. Single filers age 65 and older  who are not a surviving spouse can increase the standard deduction by $1, 850. Each joint filer 65 and over can increase the standard deduction by $1, 500 apiece,  for a total of $3, 000 if both joint filers are 65-plus. You can also itemize individual tax deductions, for things like charity donations, but they need to add up to more than the standard deduction to make itemizing worthwhile.

The IRS uses the chained consumer price index (CPI) to measure inflation, as mandated by the 2017 tax reform. Like the more well-known consumer price index, the chained CPI measures price changes in about 80,000 items. The chained CPI takes into account the fact that when prices of some items rise, consumers often substitute other items. If the price of beef rises, for example, people switch to chicken.

If you’re not an economist, the main difference between the two measures is that, over time, the chained CPI rises at a slower pace than the traditional CPI — which, to be precise, is called the Consumer Price Index for All Urban Consumers , or CPI-U. From September 20 1 2 through September 20 22, the CPI-U rose by 28.3 percent and the chained CPI by only 24.8 percent, a difference of 3.5 percentage points.

If you paid a big tax bill in 202 2, you should talk with a tax adviser about how to reduce your bill in 202 3. It’s probably easier to have more money withheld from each paycheck than to face a big tax bill next year. A good first step is to look at how much tax you get taken from your paycheck. The IRS has a free withholding estimator that can tell you how much you should have taken out.

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