![]() To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income above 539,900 for single filers and above 693,750 for married couples filing jointly. This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. 2021 Federal Income Tax Brackets 2020 Federal Income Tax Brackets. If taxable income is: The tax due is: Not over 20,550: 10 of the taxable income. Iowa Code sections 422.4 defines procedures for the calculation of inflation factors. 2022 Married Filing Jointly Tax Brackets. ![]() Indexation is meant to protect taxpayers from paying higher income taxes solely as a result of inflation. Iowa Code section 422.5 details indexation of Iowa income tax brackets. Indexation of the standard deductions is covered in Iowa Code sections 422.9 and 422.21. These tax features are determined each year by applying inflation factors to, or “indexing,” the previous year’s amounts. Iowa law provides for the indexation of individual income tax brackets and standard deduction amounts. Tax year 2022 income tax brackets are shown in the table below. TurboTax Tip: Ordinary income is taxed at seven different rates: 10, 12, 22, 24, 32, 35 and 37 percent. For example, the brackets below show the first tax bracket if you are filing as single is from 0 to 9,950 with a tax rate of 10. $5,450 for married taxpayers filing jointly In 2021 there are seven tax brackets with each one having a different tax rate ranging from 10 to 37.$2,210 for married taxpayers filing separately.The tax year 2022 individual income tax standard deductions are: Individual Income Tax Standard Deductions The daily rate for 2022 is the annual rate divided by 365. The monthly rate is the annual rate divided by 12, rounded to the nearest one-tenth of a percentage point. Adding two percentage points results in the annual Department rate of 5.0 percent. The maximum Earned Income Tax Credit for 2022 will be 6,935 vs. So, now that youre focused on your 2021 taxes, here are the tax brackets youll use when you file your tax return next year: 2021 Tax Brackets for Single Filers and Married Couples Filing Jointly. ![]() Rounded to the nearest whole percent, this average is 3.0 percent. Standard deductions and about 60 other provisions have been adjusted for inflation to avoid bracket creep. The prime rate averaged 3.25 percent over the past twelve months. ![]() Iowa law requires that this average be rounded to the nearest whole percent and two percentage points to be added to it. The annual rate is based on the average monthly prime rate during the preceding twelve month period, October through September. Iowa Code Section 421.7 specifies the procedures for calculating the Department’s annual and monthly interest rates. Starting January 1, 2022, the interest rate for taxpayers with overdue payments will be: Des Moines, Iowa – The Iowa Department of Revenue has finalized individual income tax brackets and individual income tax standard deduction amounts for the 2022 tax year (applicable for taxes due in 2023) and the 2022 interest rate, which the agency charges for overdue payments. ![]()
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