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September, 2022

2020 Vs 2021 Vs 2022 Federal Income Tax Brackets

The US tax system is progressive, meaning that the more you earn the more you pay. For the years 2020-2022 there are seven different brackets for each year. Which bracket you are in depends on your taxable income; however, your bracket does not equal your tax rate.

Tax brackets work so that you pay part of your income at each level bracket as you move-up in income. In other words, someone in the 24% marginal rate bracket will pay 10% on part of their income, 12% on another part, 22% on yet another and finally 24% on everything else. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.

Below we will present comparative tables, so you change see the changes across the years, but before we do let’s look at how the rates and brackets have changes over the periods.

Evolution of Tax Rates and Brackets

The tax rates over the period are the same. There are seven brackets with progressive rates ranging from 10% up to 37% and they are the same over all three years.

Federal income tax rate brackets are indexed for inflation.  The brackets are adjusted using the chained Consumer Price Index (CPI). There were no structural changes to the tax brackets in any of the periods, so the only impact are increases year-over-year due to the inflation indexing.

The inflation adjustment factor for 2022 was 3.1% for example. This caused the 22% rate bracket for single filer to increase from $81,051 up to $83,551.

Tax Rates and Brackets

Below are the 2020-2022 tables for personal income tax rates. Note, that the 2020 figures below are the amounts applicable to the income earned during 2020 and paid in 2021 when you file your taxes.

 

Tax Brackets & Rates

Single Taxpayers
2020 2021 2022
10% 0 – $9,875 10% 0 – $9,950 10% 0 – $10,275
12% $9,875 – $40,125 12% $9,951 – $40,525 12% $10,276 – $41,775
22% $40,126 – $85,525 22% $40,526 – $86,375 22% $41,776 – $89,075
24% $85,526 – $163,300 24% $86,376 – $164,925 24% $89,076 – $170,050
32% $163,301 – $207,350 32% $164,926 – $209,425 32% $170,051 – $215,950
35% $207,351 – $518,400 35% $209,426 – $523,600 35% $215,951 – $539,900
37% $518,401 and Over 37% $523,601and Over 37% $539,901 and Over

 

Married Filing Jointly and Surviving Spouses
2020 2021 2022
10% 0 – $19,750 10% 0 – $19,900 10% 0 – $20,550
12% $19,751 – $80,250 12% $19,901 – $81,050 12% $20,551 – $83,550
22% $80,251 – $171,050 22% $81,051 – $172,750 22% $83,551 – $178,150
24% $171,051 – $326,600 24% $172,751 – $329,850 24% $178,151 – $340,100
32% $326,601 – $414,700 32% $329,851 – $418,850 32% $340,101 – $431,900
35% $414,701 – $622,050 35% $418,851 – $628,300 35% $431,901 – $647,850
37% $622,051 and Over 37% $628,301and Over 37% $647,851 and Over

 

Married Filing Separately
2020 2021 2022
10% 0 – $9,875 10% 0 – $9,950 10% 0 – $10,275
12% $9,875 – $40,125 12% $9,951 – $40,525 12% $10,276 – $41,775
22% $40,126 – $85,525 22% $40,526 – $86,375 22% $41,776 – $89,075
24% $85,526 – $163,300 24% $86,376 – $164,925 24% $89,076 – $170,050
32% $163,301 – $207,350 32% $164,926 – $209,425 32% $170,051 – $215,950
35% $207,351 – $311,025 35% $209,426 – $314,150 35% $215,951 – $323,925
37% $311,026 and Over 37% $314,151and Over 37% $323,926 and Over

 

Heads of Housholds
2020 2021 2022
10% 0 – $14,100 10% 0 – $14,200 10% 0 – $14,650
12% $14,101 – $53,700 12% $14,201 – $54,200 12% $14,651 – $55,900
22% $53,701 – $85,500 22% $54,201 – $86,350 22% $55,901 – $89,050
24% $85,501 – $163,300 24% $86,351 – $164,900 24% $89,051 – $170,050
32% $163,301 – $207,350 32% $164,901 – $209,400 32% $170,051 – $215,950
35% $207,351 – $518,400 35% $209,401 – $523,600 35% $215,951 – $539,900
37% $518,401 and Over 37% $523,601and Over 37% $539,901 and Over

 

 

Conclusion

There are no dramatic changes in the rates or brackets for the years 2020-2022, nor are there structural changes currently expected from congressional action.


Disclaimer 

Author: Service2Client

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