The IRS inflation adjustments amount to a roughly 7% increase in each bracket. The more you earn, the higher your “top” rate – that’s the rate at which your last dollar is taxed.

And the range of income subject to each of those rates is called a tax bracket. There are seven different federal income tax rates at which earned income is taxed: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Here are some of the big changes the IRS is making: Since the changes don’t apply until 2023, they won’t have any affect on your 2022 tax return that you must file by mid-April of next year. “It is very likely that you would see more in your paycheck starting in January tend to result in lower withholding for a given level of income,” said Mark Luscombe, principal federal tax analyst for Wolters Kluwer Tax & Accounting. Social Security recipients get 8.7% cost-of-living increase, the highest in more than 40 years The larger increase is aimed at helping to offset rising inflation. The Social Security Administration announced recipients will receive an annual cost of living adjustment of 5.9%, the largest increase since 1982. In this photo illustration, a Social Security card sits alongside checks from the U.S.

Federal tax return status