A key to tax planning is knowing your marginal tax rate. That’s the rate that applies at the margin, to your top dollar of income. Under our graduated income tax system, as income rises, not only does your tax bill go up but the percentage of that income claimed by the government also increases.
Your marginal rate is affected by your filing status. While everyone faces the same seven tax brackets, the brackets hold different amounts of income depending on whether your file as a single person, for example, or you are married and file a joint return with your husband or wife. The wider the brackets, the slower you march up into higher rates. Starting in 2019, the top bracket is now 37%, coupled with the additional Medicare Tax of 3.8%, which means the top bracket is really 40.8%. In essence, if you are in the top bracket, you get to take home 59% of your income.
Knowing your marginal rate is essential because it lets you determine how much of any extra earnings – from investments, a raise or moonlighting – you get to keep. It also measures the saving power of deductible expenses. Only if you know your tax bracket can you pinpoint what a charitable contribution or a business expense really costs you after your tax savings are taken into account.
The bottom line is this: knowing how high your tax bracket is can help you understand your tax-planning efforts.
2022 Tax Table
Schedule X
Single
| If taxable income is over | But not over | The tax is: |
|---|---|---|
| $0 | $10,275 | 10% of the amount over $0 |
| $10,276 | $41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| $41,776 | $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| $89,076 | $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| $170,051 | $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| $215,951 | $539,900 | $49,335.50 plus 35% of the amount over $215,950 |
| $539,901 | no limit | $162,718 plus 37% of the amount over $539,900 |
Schedule Y-1
Married Filing Jointly or Qualifying Widow(er)
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $20,500 | 10% of the amount over $0 |
| $20,550 | $83,550 | $2,055 plus 12% of the amount over $20,550 |
| $83,551 | $178,150 | $9,615 plus 22% of the amount over $83,550 |
| $178,151 | $340,100 | $30,427 plus 24% of the amount over $178,150 |
| $340,101 | $431,900 | $69,295 plus 32% of the amount over $340,100 |
| $431,901 | $647,850 | $98,671 plus 35% of the amount over $431,900 |
| $647,851 | no limit | $174,253.50 plus 37% of the amount over $647,850 |
Schedule Y-2
Married Filing Separately
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $10,275 | 10% of the amount over $0 |
| $10,276 | $41,775 |
$1,027.50 plus 12% of the amount over $10,275 |
| $41,776 | $89,075 |
$4,807.50 plus 22% of the amount over $41,775 |
| $89,076 | $170,050 |
$15,213.50 plus 24% of the amount over $89,075 |
| $170,051 | $215,950 |
$34,647.50 plus 32% of the amount over $170,050 |
| $215,951 | $323,925 |
$49,335.50 plus 35% of the amount over $215,950 |
| $323,926 | no limit |
$87,126.75 plus 37% of the amount over $323,925 |
Schedule Z
Head of Household
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $14,650 | 10% of the amount over $0 |
| $14,651 | $55,900 |
$1,465 plus 12% of the amount over $14,650 |
| $55,901 | $89,050 |
$6,415 plus 22% of the amount over $55,900 |
| $89,051 | $170,050 |
$13,708 plus 24% of the amount over $89,050 |
| $170,051 | $215,950 |
$33,148 plus 32% of the amount over $170,050 |
| $215,951 | $539,900 |
$47,836 plus 35% of the amount over $215,950 |
| $539,901 | no limit |
$161,218.50 plus 37% of the amount over $539,900 |
2023 Tax Table
Schedule X
Single
| If taxable income is over | But not over | The tax is: |
|---|---|---|
| $0 | $10,275 | 10% of the amount over $0 |
| $10,276 | $41,775 | $1,027.50 plus 12% of the amount over $10,275. |
| $41,776 | $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| $89,076 | $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| $170,051 | $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| $215,951 | $539,900 | $49,335.50 plus 35% of the amount over $215,950 |
| $539,901 | no limit | $162,718 plus 37% of the amount over $539,900 |
Schedule Y-1
Married Filing Jointly or Qualifying Widow(er)
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $20,550 | 10% of the amount over $0 |
| $20,551 | $83,550 | $2,055 plus 12% of the amount over $20,550 |
| $83,551 | $178,150 | $9,615 plus 22% of the amount over $83,550 |
| $178,151 | $340,100 | $30,427 plus 24% of the amount over $178,150 |
| $340,101 | $431,900 | $69,295 plus 32% of the amount over $340,100 |
| $431,901 | $647,850 | $98,671 plus 35% of the amount over $431,900 |
| $647,851 | no limit | $174,253.50 plus 37% of the amount over $647,850 |
Schedule Y-2
Married Filing Separately
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $10,275 | 10% of the amount over $0 |
| $10,276 | $41,775 |
$1,027.50 plus 12% of the amount over $10,275 |
| $41,776 | $89,075 |
$4,807.50 plus 22% of the amount over $41,775 |
| $89,076 | $170,050 |
$15,213.50 plus 24% of the amount over $89,075 |
| $170,051 | $215,950 |
$34,647.50 plus 32% of the amount over $170,050 |
| $215,951 | $323,925 |
$49,335.50 plus 35% of the amount over $215,950 |
| $323,926 | no limit |
$87,126.75 plus 37% of the amount over $323,925 |
Schedule Z
Head of Household
| If taxable income is over– | But not over– | The tax is: |
|---|---|---|
| $0 | $14,650 | 10% of the amount over $0 |
| $14,651 | $55,900 |
$1,465 plus 12% of the amount over $14,650 |
| $55,901 | $89,050 |
$6,415 plus 22% of the amount over $55,900 |
| $89,051 | $170,050 |
$13,708 plus 24% of the amount over $89,050 |
| $170,051 | $215,950 |
$33,148 plus 32% of the amount over $170,050 |
| $215,951 | $539,900 |
$47,836 plus 35% of the amount over $215,950 |
| $539,901 | no limit |
$161,218.50 plus 37% of the amount over $539,900 |