2021 Rates and 2022 Inflation Tables

Recently, inflation has gone up significantly, mainly due to the Covid-19 pandemic. As a result, most COLA amounts have also substantially increased. As you plan your 2022 taxes, it’s important to take these changes into account.

Every year, the IRS factors inflation into its calculations of new tax rates, as well as maximum contributions for accounts such as retirement savings. This helps counteract the effects of rising prices in the economy. 

For your convenience, we have compiled the new IRS annual cost-of-living adjustment (COLA) rates for 2022 with respect to several tax provisions.

As always, the CJBS team is happy to answer any questions you may have, to ensure that you are optimizing your tax refund.

The following tables provide a year-to-year COLA comparison for 2021 and 2022: 

2021 Tax Benefit

Standard Deduction20212022
Married-Joint$25,100$25,900
Single$12,550$12,950
Married-Separate$12,550$12,950
Head of Household$18,800$19,400
Foreign Earned Income Exclusion$108,700$112,000
Maximum Taxable Social Security Earnings Base$142,800$147,000

2021 Individual Tax Income Rates

RateSingleHead of HouseholdMarried-JointMarried-Separate
10%$0 – $9,950$0 – $14,200$0 – $19,900$0 – $9,950
12%$9,951 – $40,525$14,201 – $54,200$19,901 – $81,050$9,951 – $40,525
22%$40,526 – $86,375$54,201 – $86,350$81,051 – $172,750$40,526 – $86,375
24%$86,376 – $164,925$86,351 – $164,900$172,751 – $329,850$86,376 – $164,925
32%$164,926 – $209,425$164,901 – $209,400$329,851 – $418,850$164,926 – $209,425
35%$209,426 – $523,600$209,401 – $523,600$418,851 – $628,300$209,426 – $314,150
37%Over $523,600Over $523,600Over $628,300Over $314,150

2022 Individual Tax Income Rates

RateSingleHead of HouseholdMarried-JointMarried-Separate
10%$0 – $10,275$0 – $14,650 $0 – $20,550$0 – $10,275
12%$10,276 – $41,775$14,651 – $55,900$20,551 – $83,550$10,276 – $41,775
22%$41,776 – $89,075$55,901 – $89,050$83,551 – $178,150$41,776 – $89,075
24%$89,076 – $170,050$89,051 – $170,050$178,151 – $340,100$89,076 – $170,050
32%$170,051 – $215,950$170,051 – $215,950$340,101 – $431,900$170,051 – $215,950
35%$215,951 – $539,900$215,951 – $539,900$431,901 – $647,850$215,951 – $323,925
37%Over $523,900Over $539,900Over $647,850Over $323,925

2021 Trust & Estates Income Tax Brackets

OverNot OverThe Tax Is…Of Amount Over
$0$2,65010%$0
$2,650$9,550$265 + 24%$2,650
$9,550$13,050$1,921 + 35%$9,550
$13,050$3,146 + 37%$13,050

2022 Trust & Estates Income Tax Brackets

OverNot OverThe Tax Is…Of Amount Over
$0$2,75010%$0
$2,750$9,850$275 + 24%$2,750
$9,850$13,450$1,979 + 35%$9,850
$13,450$3,146 + 37%$13,450

2021 Alternative Minimum Tax Exemption

2021 ExceptionPhase-Out ThresholdComplete Phase-Out of Exemption
Married Filing Jointly$114,600$1,047,200$1,505,600
Married Filing Single$57,300$523,600$818,000
Single$73,600$523,600$818,000
Estates and Trust$25,700$85,650$188,450

2022 Alternative Minimum Tax Exemption

2022 ExceptionPhase-Out ThresholdComplete Phase-Out Exemption
Married Filing Jointly$118,100$1,079,800$1,552,200
Married Filing Single$59,050$539,900$776,100
Single$75,900$539,900$843,500
Estates and Trust$26,500

2021 Taxable Income Threshold for Long-Term Capital Gains Rate

Filing Status0% Rate for Long-Term
Capital Gains and Qualified Dividends
15% Rate for Long-Term
Capital Gains and Qualified Dividends
20% Rate for Long-Term
Capital Gains and Qualified Dividends
Married Filing JointlyUp To $80,800$80,801 – $501,600Over $501,600
Head of HouseholdUp To $54,100$54,100 – $473,750Over $473,750
SingleUp To $40,400$40,401 – $445,850Over $445,850
Married Filing Single
Up To $40,400
$40,401 – $250,800Over $250,800
Trusts & EstatesUp To $2,700$2,701 – $13,250Over $13,250

2022 Taxable Income Threshold for Long-Term Capital Gains Rate

Filing Status0% Rate for Long-Term
Capital Gains and Qualified Dividends
15% Rate for Long-Term
Capital Gains and Qualified Dividends
20% Rate for Long-Term
Capital Gains and Qualified Dividends
Married Filing JointlyUp to $83,350$83,351 – $517,200Over $517,200
Head of HouseholdUp to $55,800 $55,801 – $488,500Over $488,500
SingleUp to $41,675$41,676 – $459,750Over $459,750
Married Filing SingleUp to $41,675$41,676 – $258,600Over $258,600
Trusts & EstatesUp to $2,800$2,801 – $13,700$13,700

Gift & Estate Tax Exemptions

20212022
Gift Tax Exemption$11,700,000$12,060,000
Estate Tax Exemption$11,700,000$12,060,000
GST Tax Exemption$11,700,000$12,060,000
Annual Exclusion$15,000$16,000
Annual Exclusion
(For gifts to spouses
who are not U.S. Citizens)
$159,000$164,000

2021 and 2022 Dollar Limit for Retirement Plans

Plan Types2021 Limits2022 Limits
Defined Contribution Plans$58,000$61,000
Defined Benefit Plans$230,000$245,000
Defined Contribution Plans – 401(k),
403(B) and 457 and Thrift Plans under Age 50
$19,500$20,500
Age 50 and Older$26,000$27,000
Simple Plans: Under Age 50$13,500$14,000
Age 50 and Older$16,500$17,000
Qualified Plans – Annual Compensation Limit$290,000$305,000
Traditional IRA AGI Phase-Out (MFJ with participant in employer plan)$105,000$109,000
Traditional IRA AGI Phase-Out (MFJ with taxpayer not an active participant, spouse in employer plan)$198,000$204,000
Traditional IRA AGI Phase-Out (Single/HOH)$66,000$68,000
Roth IRA Contributions AGI Phase-Out (Single/HOH)$125,000$140,000
Roth IRA Contributions AGI Phase-Out (MFJ)$198,000$208,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (MFJ)$66,000$68,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (HOH)$49,500$51,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (Single/MFS)$33,000$34,000
Other Thresholds20212022
SEP Annual Contribution Limit $58,000$58,000
Key Employee in a Top-Heavy Plan$185,000$200,000
Highly Compensated Employee$130,000$135,000

Health Savings Account

Contribution Limits 202120212022
Single/Family$3,600/$7,200 $3,650/$7,300
Age 55 + IRA Catch-up Contribution $1,000$1,000
Age 55 + Catch-up contributions to 401(k),
403(B) and 457 and Thrift Plans
$6,500$6,500
Catch-up contributions to SIMPLEs $3,000$3,000

2022 Earned Income Tax Credit (EITC) Parameters

Filing StatusNo ChildrenOne ChildTwo ChildrenThree or More Children
Single or Head of HouseholdIncome at Max Credit$7,320$10,980$15,410$15,410
Maximum Credit$560$3,733$6,164$6,935
Phaseout Begins$9,160$20,130$20,130$20,130
Phaseout Ends (Credit Equals Zero)$16,480$43,492$49,399$53,057
Married Filing JointlyIncome at Max Credit$7,320$10,980$15,410$15,410
Maximum Credit$560$3,733$6,164$6,935
Phaseout Begins$15,920$26,260$26,260$26,260
Phaseout Ends (Credit Equals Zero)$22,610$49,622$55,529$59,187