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.
Author: Service2Client
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