Head of Household: Definition, Who Qualifies, Income Tax Brackets

What Is Head of Household (HOH)?

Head of household is a filing status on tax returns used by unmarried taxpayers who support and house a qualifying person. Taxpayers may file tax returns as head of household (HOH) if they are unmarried and pay more than half the cost of supporting and housing a qualifying person.

The head of household filing status is meant to give single or separated individuals with dependents a financial boost. Taxpayers eligible to classify themselves as an HOH get higher standard deductions and lower tax rates than taxpayers who file as single or married filing separately.

Understanding Head of Household (HOH)

Head of household is a filing status available to taxpayers who meet certain qualifying thresholds. They must file separate individual tax returns, be considered unmarried, and have a qualifying dependent, such as a child or parent. Further, the HOH must pay more than one-half the cost of supporting the qualifying person and more than one-half the cost of maintaining that qualifying person’s primary home. Here's who can file.

Unmarried

To be considered unmarried, the HOH must be single, divorced, or regarded as unmarried. For example, married taxpayers would be regarded as unmarried if they did not live with their spouse during the last six months of the tax year. The status further requires that the HOH meet either of these two requirements:

• The HOH is married to a nonresident alien whom they elect not to treat as a resident alien.
• The HOH is legally separated under a divorce or separate maintenance decree by the last day of the tax year.

Financially Support a Qualifying Person

An HOH must pay for more than one-half of the cost of a qualifying person’s support and housing costs. The HOH must also pay more than one-half of the rent or mortgage, utilities, repairs, insurance, taxes, and other costs of maintaining the home where the qualifying person lives for more than half of the year. The home must be the taxpayer’s own home unless the qualifying person is the taxpayer’s parent and the home is the property of that parent. 

Personal Exemption Suspended

The enactment of the Tax Cuts and Jobs Act of 2017 (TCJA) resulted in the suspension of the personal exemption through 2025. Back when there was one, HOH filers had to be able to claim an exemption for their qualifying person. Taxpayers could release their exemption to a noncustodial parent in a divorce proceeding or a legal separation agreement and remain eligible to file as an HOH.

Head of Household vs. Single

If you qualify, there can be significant advantages to filing as head of household rather than single. There are two main reasons for this:

• One is that the tax brackets are wider for people filing as head of household, rather than as single. For example, in 2022, single filers may reach the top of the 12% bracket with $41,775 ($44,725 in 2023), whereas heads of households may have up to $55,900 ($59,850 in 2023).
• Second, there is a larger standard deduction for people filing as head of household. This means that you can earn more money before you start paying taxes on it. In 2022, the standard deduction for people filing singly is $12,950 ($13,850 in 2023), compared with $19,400 for those filing as HOH ($20,800 in 2023).
  

Examples of Filing as Head of Household

Filing as an HOH can provide significant savings for taxpayers. Below we compare the tax burden for an individual earning $70,000 using the different filing statuses.

HOH vs. Single or Married Filing Separately

For 2022 tax returns, which are due April 2023, the HOH has a standard deduction of $19,400, reducing their $70,000 taxable income to $50,600. From that amount, $14,650 will be taxed at 10%, and $35,900 at 12%, bringing the total tax bill to $1,465 + $4,308 = $5,773.

In comparison, a taxpayer filing as single or married filing separately qualifies for a standard deduction of $12,950, reducing their taxable income from $70,000 to $57,050. Of that $57,050, $10,275 will be taxed at 10%, $31,499 at 12%, and the remaining $15,276 at 22%, resulting in a total tax bill of $1,027.5 + $3,779.88 + $3,360.72 = $8,168.1.

Thus, filing as an HOH saved this hypothetical taxpayer $2,395.10.

For the 2023 tax year, these savings will increase even more as income limits are adjusted for inflation, and the standard deduction rises $1,400 for HOH to $20,800, versus $900 to $13,850 for single filers.

The Bottom Line

Head of household (HOH) is a filing status for tax returns. It is used by unmarried taxpayers who support and house a qualifying person. To qualify for head of household (HOH) tax filing status, you must file a separate individual tax return, be considered unmarried, and have a qualifying child or dependent.

The purpose of the HOH filing status is to provide single or separated individuals with dependents a financial boost. If you qualify, it is almost always better to be head of household. Head of household filers have a lower tax rate and higher standard deductions than single filers.