The Internal Revenue Service has announced that the income thresholds for tax brackets will be higher in 2022 because of the pace of inflation.
It is common for the tax agency to announce an adjustment to tax brackets each year to reflect increasing consumer prices.
The 2017 Tax Cuts and Jobs Act tax rates will not be changed. The lowest threshold tax rate is 10% and the highest is 37%.
Other thresholds will be adjusted, according to the IRS, to reflect inflation. The standard deduction for married couples will rise 3.2% to $25,900 next year, for instance.
The adjustments represent around a 3% increase over last year’s thresholds.
According to the IRS, here are the new thresholds for the nation’s seven tax brackets in 2022.
· 10% tax bracket: single individuals earning less than $10,275 and married couples filing jointly earning up to $20,550.
· 12% tax bracket: single filers earning more than $10,275 and married couples filing jointly earning over $20,550.
· 22% tax bracket: single filers earning more than $41,775 and married couples filing jointly earning over $83,550.
· 24% tax bracket: single filers earning more than $89,075 and married couples filing jointly earning over $178,150.
· 32% tax bracket: single filers earning more than $170,050 and married couples filing jointly earning over $340,100.
· 35% tax bracket: single filers earning more than $215,950 and married couples filing jointly earning over $431,900.
· 37% tax bracket: single filers earning more than $539,900 and married couples filing jointly earning over $647,850.
Editor’s note: An earlier version of this story indicated that the change was for the 2020 tax year.
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