Editor’s note: This story has been updated to accurately reflect when federal income tax brackets were announced.
Tax brackets for the upcoming tax season are expected to remain the same as in 2022 after the Internal Revenue Service announced higher brackets and standard deductions amid soaring inflation last year.
The income thresholds have increased for each bracket, which is expected to be in place until 2025, according to Nerd Wallet.
The brackets show how much a taxpayer will owe on “taxable income” from their return, which is calculated by adding up all income sources and then subtracting any standard deductions, according to H&R Block.
These are the federal tax brackets
|$22,000 or less||10% of the taxable income|
|$22,001 to $89,450||$2,200 plus 12% of the amount over $22,000|
|$89,451 to $190,750||$10,294 plus 22% of the amount over $89,450|
|$190,751 to $364,200||$32,580 plus 24% of the amount over $190,750|
|$364,201 to $462,500||$74,208 plus 32% of the amount over $364,200|
|$462,501 to $693,750||$105,664 plus 35% of the amount over $462,500|
|$693,751 or more||$186,601.50 plus 37% of the amount over $693,750|
|$11,000 or less||10% of the taxable income|
|$11,001 to $44,725||$1,100 plus 12% of the amount over $11,000|
|$44,726 to $95,375||$5,147 plus 22% of the amount over $44,725|
|$95,376 to $182,100||$16,290 plus 24% of the amount over $95,375|
|$182,101 to $231,250||$37,104 plus 32% of the amount over $182,100|
|$231,251 to $578,125||$52,832 plus 35% of the amount over $231,250|
|$578,126 or more||$174,238.25 plus 37% of the amount over $578,125|
The complete breakdown can be found here.
These adjustments can help taxpayers not end up in a higher tax bracket as cost of living expenses increase, according to the finance publication.
While the upcoming tax season has yet to start, Californians who have yet to file their 2022 taxes have until Oct. 16 to do so.
The tax extension was granted to residents impacted by severe weather during the winter season last year.