Tax season is just around the corner, and it's never too early to start thinking about your taxes. Whether you're self-employed or work for a company, it's important to know your tax bracket and how much you'll owe come tax time. Here are the federal income tax brackets for tax years 2022 and 2023, plus tips on how you can estimate your taxes based on your top income.
In an effort to adjust for inflation, the IRS announced new tax brackets for the 2023 tax year. The top tax rate remains at 37%, but the income thresholds for each bracket have increased slightly. For tax year 2022, the income thresholds and tax rates remain the same as they were for 2021.
There are seven tax brackets for most ordinary income for the 2022 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The income ranges for each bracket are as follows: