2021-2022 Federal Earnings Tax Brackets and Charges

The highest tax price is 37%. For 2026, the highest price is ready to return to 39.6%.


Illustration: Tammy Lian

The tax code at the moment has seven income-tax brackets for people that vary from 10% to 37%. The ten% price takes impact on the first greenback of taxable earnings, after advantages corresponding to the usual deduction are utilized. Every tax price applies to earnings in that bracket. So a taxpayer whose final {dollars} are taxed at 24% will probably have parts of earnings taxed at 0, 10%, 12% and 22%.

The present charges and brackets have been set by the 2017 tax overhaul, they usually expire on the finish of 2025. If Congress doesn’t make adjustments, the highest price will return to 39.6% in 2026.


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The income-tax charges and brackets are adjusted yearly for inflation, though in 2017 Congress switched to an often-slower methodology for calculating inflation. On the time, the change was projected to value Individuals $133.5 billion over a decade, in keeping with Congress’s Joint Committee on Taxation.

Not all tax provisions are inflation-adjusted, nonetheless. Among the many exceptions are some tax breaks for householders, thresholds for taxes on Social Safety funds, and sure taxes on funding earnings. Consequently, hundreds of thousands of Individuals owe Uncle Sam greater than they might if these provisions have been listed. Extra details about inflation and tax thresholds is right here.

This yr’s tax deadline for most people is April 18. Considering realizing extra earlier than you file your taxes? Register right here to learn the WSJ Tax Information 2022.

Write to Laura Saunders at Laura.Saunders@wsj.com and Richard Rubin at richard.rubin@wsj.com

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