How Does Inflation Impact Taxes?

We don’t want to over-inflate a balloon because it will pop. It’s simply too much pressure. This law of physics expands to more than just balloons. Inflation applies to taxes too. Every year the IRS adjusts the tax brackets to ease the pressure of (over)inflation and help Americans impacted by the economy.

So, let’s break it down:

All tax filers fall under a certain income bracket in correlation to their taxable income and their filing status. For tax year 2022, the tax rates have not changed, but the brackets have been modified due to inflation. Therefore, you could wind up in a different tax bracket and pay a different tax rate than when you filed last year.

The marginal tax rate has seven categories that correspond to a person’s taxable income. Tax rates range from 10% to 37%, with higher income earners falling into a higher tax rate.

What does the breakdown look like for tax year 2022?

For tax year 2022, these are the tax rates and brackets that will be used to calculate your tax liability. Don’t want to do the math yourself? Let us do it for you. File with ezTaxReturn today!

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2022 Tax Rates

Single Filers

Tax Income	Tax Rate
Less than $10,275	10%
$10,276 – $41,775	12%
$41,776 – $89,075	22%
$89,076 – $170,050	24%
$170,051 – $215,950	32%
$215,951 – $539,900	35%
$539,901 or more	37%

Head of Household

Tax Income	Tax Rate
Less than $14,650	10%
$14,651 – $55,900	12%
$55,901 – $89,050	22%
$89,051 – $170,050	24%
$170,051 – $215,950	32%
$215,951 – $539,900	35%
$539,901 or more	37%

Joint Filers or Qualifying Surviving Spouse

Tax Income	Tax Rate
Less than $20,550	10%
$20,551 – $83,550	12%
$83,551 – $178,150	22%
$178,151 – $340,100	24%
$340,101 – $431,900	32%
$431,901 – $647,850	35%
$647,850 or more	37%

Married Filing Separately

Tax Income	Tax Rate
Less than $10,275	10%
$10,276 – $41,775	12%
$41,776 – $89,075	22%
$89,076 – $170,050	24%
$170,051 – $215,950	32%
$215,951 – $323,925	35%
$323,926 or more	37%