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Get your taxes done using TurboTax
Yes, this is how filing a joint tax return works. It sounds like it may be your first year filing this way? (Congratulations!)
When you file a tax return jointly with a spouse everything is combined into one, and your taxes are calculated this way. The brackets move a little - so that more income is needed on a joint return than on an individual one to get you to each tax bracket, but it is all taxed the same.
Here are the brackets,and you can see what I mean about the change for joint filers:
ax Rate Taxable Income (Single) Taxable Income (Married Filing Jointly)
10% | Up to $9,875 | Up to $19,750 |
12% | $9,876 to $40,125 | $19,751 to $80,250 |
22% | $40,126 to $85,525 | $80,251 to $171,050 |
24% | $85,526 to $163,300 | $171,051 to $326,600 |
For tax purposes, now that you are married, there is no "hers" and "yours" but there is "our" income.
Your wife's income wasn't "taxed" at 10% - that is just what her company "withheld" - which is really just an advance payment of the taxes expected to be due. She should, and perhaps you both should, file new Form W-4s with your payroll departments.