What are the tax rates for 2022?

2022 federal income tax brackets

Tax rate Taxable income bracket
22% $83,551 to $178,150
24% $178,151 to $340,100
32% $340,101 to $431,900
35% $431,901 to $647,850

How do I calculate taxable income?

Now, one pays tax on his/her net taxable income.

  1. For the first Rs. 2.5 lakh of your taxable income you pay zero tax.
  2. For the next Rs. 2.5 lakhs you pay 5% i.e. Rs 12,500.
  3. For the next 5 lakhs you pay 20% i.e. Rs 1,00,000.
  4. For your taxable income part which exceeds Rs. 10 lakhs you pay 30% on entire amount.

How do I use a tax table?

How to Read Federal Tax Tables

  1. Step 1: Determine your filing status. The IRS allows you to choose any filing status that you are eligible for.
  2. Step 2: Calculate your taxable income.
  3. Step 3: Determine your income bracket.
  4. Step 4: Identify your tax filing status.
  5. Step 5: Find the amount of tax you owe.

How do tax rate tables work?

Tax brackets show you the tax rate you will pay on each portion of your income. For example, if you are single, the lowest tax rate of 10% is applied to the first $9,950 of your income in 2021. The next chunk of your income is then taxed at 12%, and so on, up to the top of your taxable income.

What is the gift tax exclusion for 2022?

$16,000 In addition, in 2022, the gift tax annual exclusion amount for gifts to any person (other than gifts of future interests to trusts) will increase to $16,000, while the gift tax annual exclusion amount for gifts to a non-citizen spouse will increase to $164,000.

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