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Writer's pictureAlexa Heter

IRS Provides Tax Rates for 2022 & Inflation Adjustments






Marginal Rates: For tax year 2022 the tax rates are as follows:

  • 37%, for incomes greater than $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).

  • The lowest rate is 10% for incomes of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly).

Standard Deduction: For tax year 2022 the standard deduction is as follows:

  • Single or Married Filing Separate- $12,950 (up $400 from prior year)

  • Head of Household-$19,400 (up $600 from prior year)

  • Married Filing Joint- $25,900 (up $800 from prior year)

Other Items to Note:

  • Annual Gift Exclusion- $16,000 (up $1,000 from prior year)

  • Estates of Decedents- who die during 2022 have a basic exclusion amount of $12,060,000, up from a total of $11,700,000 for estates of decedents who died in 2021

  • Educator Expense Deduction- $300 (up $50 from prior year)

  • Foreign Earned Income Exclusion- $112,000 (up $3,300 from prior year)


Full detail on all annual IRS adjustment- Revenue Procedure 2021-45 found at https://www.irs.gov/pub/irs-drop/rp-21-45.pdf

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I use Heter Accountancy for my business and Alexa does an amazing job at staying on top of our finances. She does our bookkeeping, reconciles our accounts, handles payroll, and the list goes on. She’s professional and makes everything really easy for me. I can’t recommend her enough.

Scott Edwards, CEO of DropWater 

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