to Fairbanks and beyond.
Since the late 1980s, the U.S. Tax Code has required that federal income tax brackets be adjusted for inflation annually, and inflation adjustments have been inserted into the Internal Revenue Code in recent years with increasing frequency. For example, the Code now requires over 50 other inflation-driven computations to determine deduction, exemption and exclusion amounts in addition to the 40 separate computations needed to inflation-adjust the tax bracket schedules each year.
Estimates for any of the inflation-adjusted tax figures for 2022, of course, are also necessarily subject to any changes to the tax law that may be made by Congress over the course of the next year.
2022 Tax Brackets and Rates
In 2022, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows (Table 1).
There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.
The top marginal income tax rate of 37 percent will hit taxpayers with taxable income above $539,900 for single filers and above $647,850 for married couples filing jointly.