2021-2022 Tax Brackets and Federal Income Tax Rates

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Tax Bracket Calculator

FlyFin's free tax bracket calculator gives you a fast answer to the question, "What tax bracket am I in?"

By asking you a few essential questions about your work regarding your income and expenses, the tax bracket calculator provides you with this vital information needed to file your taxes properly, pay the amount you are required to and to possibly reduce the amount required.

How Do Tax Brackets Work?

The income tax bracket system, also known as the progressive tax system, is the IRS' attempt to make the American taxation system have the same impact on taxpayers at every income level.

Federal tax brackets are essentially ranges of income with different percentage rates of taxation. The higher your income is, the higher the federal income tax rates are. It can be important to know which tax bracket your income falls into, so you can know where to minimize your taxable income – and the taxes you pay.

If you're filing singly, and you have taxable income of $70,000 for the year, for example, you would fall into the $40,526 to $86,375 income bracket. That means your tax rate would be 22%. More specifically, you would owe $4,664 in taxes plus 22% of the amount of your income over $40,525, which is $70,000-$40,525, or $29,475.

22% of $29,475 is $6,484.5, so on your $70,000 of income, you would owe $4,664 + $6,484.5, for a total of $11,148.5.

Find out how your income gets taxed with this quick 1099 tax calculator.

What is my effective tax rate?

You reach different tax brackets throughout the year as the amount you earn grows with every payment you receive for your work. The tax rate charged on the first dollar you earn of the year will likely be far lower than the tax rate charged on the last dollar you earn in the year.

The percentage rate that your overall income is taxed at is called your effective tax rate. It can be calculated pretty simply by taking the tax the IRS charges you and dividing it by your total earnings for the year.

Total tax ÷ Adjusted gross income = effective tax rat

Everyone has a different effective tax rate, based on their income and the deductions they take from their taxable income. It's the amount you pay in taxes divided by the amount you earn before taxes.

Say you have a side job doing landscaping. If you made $40,000 in a year in total before taxes, and you paid $10,000 in tax, your effective tax rate would be 10,000 divided by 40,000. This works out to .25, or 25%.

What is my marginal tax rate?

Parts of your income might fall into different tax brackets than other parts. It's that last dollar of income in the highest tax bracket that is referred to as your marginal tax rate. The higher your annual adjusted income is, the higher, in general, your marginal tax rate will be.

What has the IRS determined for tax brackets 2022?

The IRS has set seven tax brackets 2022 taxpayers will fall into. The lowest tax bracket, or the lowest income level, is $0 to $9,950. It is taxed at 10%, which means the first $9,950 of the money you made that year is taxed at 10%. The next six levels are taxed at 12%, 22%, 24%, 32%, 35% and 37%.

These tax brackets 2022 taxpayers will find themselves in at the end of the year were defined by the IRS. What you owe is also affected by the amount of income you earned and whether your filing is single, joint, married filing jointly, married filing separately, etc. Each filing status has its own set of federal income tax brackets. These are slightly different from the tax brackets 2021 taxpayers were subject to, because they are adjusted each year for inflation.

Do deductions and tax credits affect your tax bracket?

One of the best ways to get your income into a lower tax bracket is by taking deductions and tax credits to lower your taxable income. What is taxable income? Also known as your adjusted gross income, this is the amount of income before any tax is applied and after all deductions and tax credits have been taken.

Tax credits can be very advantageous for students, for example, who might be working a freelance job while getting an undergraduate degree. If they earned $42,000 in adjusted gross income, they would just barely be in the 22% tax bracket.

If they qualified for the American opportunity credit and received the full $2,500 tax credit for expenses such as tuition and books, they would be able to lower their taxable income by that amount. As a result, their adjusted gross income would go to $35,000, putting them in the 12% tax bracket, and they would end up paying less in taxes.

What is FlyFin?

The tax bracket calculator is one of many FlyFin features geared specifically toward freelancers and the self-employed. The A.I.-powered tax engine finds every possible tax deduction to minimize taxable income and keep taxpayers in the lowest tax bracket.

Self-employed individuals can get free CPA advice 24/7 for any and all tax questions within the app. And anyone, freelancer or not, can file taxes through the FlyFin app with the support of the CPA team, at a fraction of the normal CPA cost.

Past years' tax brackets

Curious how federal income tax brackets and rates have changed over the years? Take a look back.

2021 tax brackets and rates

2020 tax brackets and rates

2019 tax brackets and rates

2018 tax brackets and rates

2017 tax brackets and rates

2016 tax brackets and rates

2015 tax brackets and rates

2014 tax brackets and rates

2013 tax brackets and rates

2012 tax brackets and rates

2011 tax brackets and rates

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