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Tax Brackets Will Be Higher in 2022 Due to Faster Inflation, IRS Says

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November 11, 2021
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WASHINGTON–The threshold for the top federal income-tax bracket in 2022 will climb by nearly $20,000 next year for married couples, and that 37% rate will apply to income above $647,850, the Internal Revenue Service said Wednesday as it implemented automatic tax-code updates to reflect faster inflation in 2021.

For individuals, that top tax bracket will start at $539,900. Those levels and the other tax bracket break points all rose about 3% from tax year 2021 due to automatic inflation adjustments built into the tax code.

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