How soaring inflation may deliver a higher tax bill — especially for retirees, homeowners and high earners

As the cost of living surges, Americans wrestle with higher prices on day-to-day costs, including groceries, housing and gasoline.
But there’s another sneaky expense — higher taxes — that may be costly for some taxpayers. Those most at risk of a tax-related surprise include retirees, high earners, homeowners and residents of particular states.

Annual inflation rose by 9.1% in June, growing at the fastest pace since late 1981, according to the U.S. Department of Labor.

Each fall, the IRS makes inflation adjustments for the coming year on a range of tax provisions. The IRS boosted federal income tax brackets for 2022 and adjusted many other provisions, including standard deductions, 401(k) plan limits and more.