That leaves only $10,925 of your taxable income (the amount over $89,075) that is taxed at the 24% rate, which comes to an additional $2,622 of tax. After that, the next $47,300 of your income (from $41,776 to $89,075) is taxed at the 22% rate for $10,406 of tax. The next $31,500 of income (the amount from $10,276 to $41,775) is taxed at the 12% rate for an additional $3,780 of tax.
Again, assuming you're single with $100,000 taxable income in 2022, the first $10,275 of your income is taxed at the 10% rate for $1,028 of tax.
Green Home Improvements: Larger Tax Breaks Are Now Available The rest of it is taxed at the 10%, 12%, and 22% rates. That's because, using marginal tax rates, only a portion of your income is taxed at the 24% rate.
Since $100,000 is in the 24% bracket for singles, will your 2022 tax bill simply a flat 24% of $100,000 – or $24,000? No! Your tax is actually less than that amount. Suppose you're single and end up with $100,000 of taxable income in 2022. The 2023 bracket covers $50,649 of taxable income ($95,375 – $44,726 = $50,649), which is $3,350 wider than for 2022.īut that's OK – wider tax brackets are a good thing, because it helps prevent "bracket creep." When a bracket gets wider, there's less of a chance that you'll end up in a higher tax bracket if your income stays the same or doesn't grow at the rate of inflation from one year to the next. So, from 2021 to 2022, the 22% bracket for single filers got $1,450 wider ($47,299 – $45,849 = $1,450).įor 2023, however, the width of the 22% singles bracket grew by more than twice as much. Take, for example, the 22% bracket for single taxpayers.
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