North Carolina Tax Update: How Much Will You Owe in 2022?
I am not a fan of taxes. Last year I owed and it made me cry inside. North Carolina, it’s time to start thinking about taxes in 2022. The topic is not fun, but it’s a part of being an adult. The IRS has just released its new federal income tax brackets for 2022. As a result, you may owe a different amount on your taxes.
According to CNBC, seven tax rates remain unchanged, while the income limits have been adjusted for inflation. These are the rates and income brackets for federal taxes. Sen. Phil Berger (R-Rockingham County) announced yesterday that North Carolina lawmakers are likely to vote on a compromise budget bill. Teachers would receive pay raises and bonuses, state employees would receive a $15 minimum wage, the state income tax rate would be cut, infrastructure projects would be funded, and it would cost $27 billion in total.
This is for both individuals and married couples filing a return jointly, via the IRS in North Carolina.
- 35% for incomes over $215,950 ($431,900 for married couples filing jointly)
- 32% for incomes over $170,050 ($340,100 for married couples filing jointly)
- 24% for incomes over $89,075 ($178,150 for married couples filing jointly)
- 22% for incomes over $41,775 ($83,550 for married couples filing jointly)
- 12% for incomes over $10,275 ($20,550 for married couples filing jointly)
- 10% for incomes of $10,275 or less ($20,550 for married couples filing jointly)
The IRS also released higher standard deductions for 2022, which can be viewed below:
- $25,900 for married couples filing jointly
- $12,950 for individuals and married people filing separately
- $19,400 for heads of households for the tax year 2022
- There is no limit on itemized deductions, according to this IRS.
In 2020, the North Carolina tax brackets for the tax year 2020 did not tax income at different rates. North Carolina income is taxed at a constant rate of 5.25% according to Efile.