The IRS recently published the annual inflation updates for 2022. If you have questions about a particular amount that I do not mention here, you can likely find it in the official IRS announcements:
- Rev. Proc. 2021-45 contains most inflation adjustment figures,
- Notice 2021-61 contains figures relating to retirement accounts, and
- Rev. Proc. 2021-25 contains figures relating to health savings accounts (HSAs).
Single 2022 Tax Brackets
Taxable Income |
Tax Bracket: |
$0-$10,275 | 10% |
$10,275-$41,775 | 12% |
$41,775-$89,075 | 22% |
$89,075-$170,050 | 24% |
$170,050-$215,950 | 32% |
$215,950-$539,900 | 35% |
$539,900+ | 37% |
Married Filing Jointly 2022 Tax Brackets
Taxable Income |
Tax Bracket: |
$0-$20,550 | 10% |
$20,550-$83,550 | 12% |
$83,550-$178,150 | 22% |
$178,150-$340,100 | 24% |
$340,100-$431,900 | 32% |
$431,900-$647,850 | 35% |
$647,850+ | 37% |
Head of Household 2022 Tax Brackets
Taxable Income |
Tax Bracket: |
$0-$14,650 | 10% |
$14,650-$55,900 | 12% |
$55,900-$89,050 | 22% |
$89,050-$170,050 | 24% |
$170,050-$215,950 | 32% |
$215,950-$539,900 | 35% |
$539,900+ | 37% |
Married Filing Separately 2022 Tax Brackets
Taxable Income |
Marginal Tax Rate: |
$0-$10,275 | 10% |
$10,275-$41,775 | 12% |
$41,775-$89,075 | 22% |
$89,075-$170,050 | 24% |
$170,050-$215,950 | 32% |
$215,950-$323,925 | 35% |
$323,925+ | 37% |
Standard Deduction Amounts
The 2022 standard deduction amounts are as follows:
- Single or married filing separately: $12,950
- Married filing jointly: $25,900
- Head of household: $19,400
The additional standard deduction for people who have reached age 65 (or who are blind) is $1,400 for each married taxpayer or $1,750 for unmarried taxpayers.
IRA Contribution Limits
The contribution limit for Roth IRA and traditional IRA accounts is unchanged at $6,000.
The catch-up contribution limit for people age 50 or over does not get inflation adjustments and therefore is still $1,000.
401(k), 403(b), 457(b) Contribution Limits
The salary deferral limit for 401(k) and other similar plans is increased from $19,500 to $20,500.
The catch-up contribution limit for 401(k) and other similar plans for people age 50 and over is unchanged at $6,500.
The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a solo 401(k)) is increased from $58,000 to $61,000.
Health Savings Account Contribution Limits
For 2022, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $3,650. The limit for somebody with family coverage under such a plan is $7,300.
The HSA catch-up contribution limit for people age 55 and over is not inflation adjusted, so it remains at $1,000.
Capital Gains and Qualified Dividends
For 2022, long-term capital gains and qualified dividends face the following tax rates:
- 0% tax rate if they fall below $83,350 of taxable income if married filing jointly, $55,800 if head of household, or $41,675 if filing as single or married filing separately.
- 15% tax rate if they fall above the 0% threshold but below $517,200 if married filing jointly, $488,500 if head of household, $459,750 if single, or $258,600 if married filing separately.
- 20% tax rate if they fall above the 15% threshold.
Alternative Minimum Tax (AMT)
The AMT exemption amount is increased to:
- $75,900 for single people and people filing as head of household,
- $118,100 for married people filing jointly, and
- $59,050 for married people filing separately.
Annual Gift Tax Exclusion
For 2022 the annual exclusion for gifts has increased from $15,000 to $16,000.
Estate Tax
The estate tax exclusion is increased to $12,060,000 per decedent.
Pass-Through Business Income
With respect to the 20% deduction for qualified pass-through income, for 2022, the threshold amount at which the “specified service trade or business” phaseout and the wage (or wage+property) limitations begin to kick in will be $340,100 for married taxpayers filing jointly and $170,050 for single taxpayers, people filing as head of household, and for married people filing separately.