Tax brackets determine the tax rate that you will pay on your taxable income.

Understanding how tax brackets work can help you estimate your federal income tax liability, plan your tax strategy, and make informed decisions about your income and deductions. By being aware of the tax brackets, you can also identify opportunities to lower your taxable income and potentially reduce your tax burden.

It’s also important to note that tax brackets are adjusted periodically to account for inflation and changes in tax laws. Taxpayers can use the tax brackets to estimate their federal income tax liability and to determine the impact of different income and deduction scenarios on their taxes.

The tax brackets for 2022-2023 are as follows:

For Single Filers:

• 10% tax rate applies to taxable income up to $10,675
• 12% tax rate applies to taxable income over $10,675 and up to $45,400
• 22% tax rate applies to taxable income over $45,400 and up to $89,950
• 24% tax rate applies to taxable income over $89,950 and up to $191,650
• 32% tax rate applies to taxable income over $191,650 and up to $416,700
• 35% tax rate applies to taxable income over $416,700 and up to $418,400
• 37% tax rate applies to taxable income over $418,400 and above

For Married Filing Jointly:

• 10% tax rate applies to taxable income up to $21,350
• 12% tax rate applies to taxable income over $21,350 and up to $91,450
• 22% tax rate applies to taxable income over $91,450 and up to $178,900
• 24% tax rate applies to taxable income over $178,900 and up to $383,350
• 32% tax rate applies to taxable income over $383,350 and up to $582,100
• 35% tax rate applies to taxable income over $582,100 and up to $628,300
• 37% tax rate applies to taxable income over $628,300 and above

Note that these tax brackets are subject to change based on legislation and inflation adjustments. It’s always a good idea to consult with a tax professional for personalized advice on your tax situation.

Where to find the latest information

You can find the current and past tax brackets on the official website of the Internal Revenue Service (IRS) at www.irs.gov. The IRS typically publishes tax brackets and other tax-related information on their website each year. Additionally, you can find tax bracket information in publications such as the Form 1040 instructions or by consulting with a tax professional.