What Is the 22% Tax Bracket?

Introduction

The U.S. federal tax system is progressive, meaning different portions of your income are taxed at different rates. One commonly discussed rate is the 22% tax bracket. But what does that really mean? Let’s break it down so you can understand how it applies to your income and tax planning.

Income Range for the 22% Tax Bracket (2024)

The 22% tax bracket applies to a specific range of taxable income—the amount of income left after you subtract deductions.

For the 2024 tax year, the 22% bracket applies to the following taxable income ranges:

  • Single Filers: $47,151 to $100,525

  • Married Filing Jointly: $94,301 to $201,050

  • Head of Household: $63,101 to $168,475

Note that these figures are updated annually by the IRS to account for inflation.

How the 22% Bracket Works

It’s important to understand that only the portion of your taxable income within the 22% range is taxed at 22%—not your entire income.

Example (Single Filer):
 If your taxable income is $60,000:

  • The first $11,600 is taxed at 10%

  • The income from $11,601 to $47,150 is taxed at 12%

  • The income from $47,151 to $60,000 is taxed at 22%

In this case, only $12,849 of your income is taxed at 22%.

Taxable Income vs. Gross Income

Your taxable income is different from your total or gross income. Before determining which tax bracket you’re in, you need to subtract deductions (standard or itemized) from your total income to find your taxable income.

Standard Deduction for 2024:

  • Single: $14,600

  • Married Filing Jointly: $29,200

Conclusion

The 22% tax bracket is a federal income tax rate that applies to a portion of taxable income for many middle-income earners. In 2024, single filers with taxable income between $47,151 and $100,525 fall into this bracket. Remember, only the income within that range is taxed at 22%, making it a tiered rate as part of the progressive tax system.

George Dimov