The Internal Revenue Service (IRS) just announced the new United States federal income tax brackets for 2023.
The IRS, which makes annual adjustments for inflation, has increased the standard deduction as well as the amount of money you need to make to reach each higher tax bracket.
New 2023 Tax Bracket Rates
The United States features a progressive tax system. In other words, income isn’t taxed at a flat rate. Each new tax bracket — seven in total, ranging from 10% to 37% — applies to taxable income you’ve made above specific thresholds.
The IRS adjusts those taxable income thresholds every year based on inflation even if the federal government hasn’t changed the tax law in a meaningful way.
Here are the new tax bracket ranges for 2023 compared to this year.
Single Filers
Tax Bracket | 2023 Taxable Income | 2022 Taxable Income |
---|---|---|
10% | Not over $11,000 | Not over $10,275 |
12% | Over $11,000 but not over $44,725 | Over $10,275 but not over $41,775 |
22% | Over $44,725 but not over $95,375 | Over $41,775 but not over $89,075 |
24% | Over $95,375 but not over $182,100 | Over $89,075 but not over $170,050 |
32% | Over $182,100 but not over $231,250 | Over $170,050 but not over $215,950 |
35% | Over $231,250 but not over $578,125 | Over $215,950 but not over $539,900 |
37% | Over $578,125 | Over $539,000 |
Married Filing Jointly
Tax Bracket | 2023 Taxable Income | 2022 Taxable Income |
---|---|---|
10% | Not over $22,000 | Not over $20,550 |
12% | Over $22,00 but not over $89,450 | Over $20,550 but not over $83,550 |
22% | Over $89,450 but not over $190,750 | Over $83,550 but not over $178,150 |
24% | Over $190,750 but not over $364,200 | Over $178,150 but not over $340,100 |
32% | Over $364,200 but not over $462,500 | Over $340,100 but not over $431,900 |
35% | Over $462,500 but not over $693,750 | Over $431,900 but not over $647,850 |
37% | Over $693,750 | Over $647,80 |
Head of Household
Tax Bracket | 2023 Taxable Income | 2022 Taxable Income |
---|---|---|
10% | Not over $15,700 | Not over $14,650 |
12% | Over $15,700 but not over $59,850 | Over $14,650 but not over $55,900 |
22% | Over $59,850 but not over $95,350 | Over $55,900 but not over $89,050 |
24% | Over $95,350 but not over $182,100 | Over $89,050 but not over $170,050 |
32% | Over $182,100 but not over $231,250 | Over $170,050 but not over $215,950 |
35% | Over $231,250 but not over $578,100 | Over $215,950 but not over $539,900 |
37% | Over $578,100 | Over $539,900 |
Married Filing Separately
Tax Bracket | 2023 Taxable Income | 2022 Taxable Income |
---|---|---|
10% | Not over $11,000 | Not over $10,275 |
12% | Over $11,000 but not over $44,725 | Over $10,275 but not over $41,775 |
22% | Over $44,725 but not over $95,375 | Over $41,775 but not over $89,075 |
24% | Over $95,375 but not over $182,100 | Over $89,075 but not over $170,050 |
32% | Over $182,100 but not over $231,250 | Over $170,050 but not over $215,950 |
35% | Over $231,250 but not over $346,875 | Over $215,950 but not over $323,925 |
37% | Over $346,875 | Over $323,925 |
2023 Federal Tax Standard Deduction Update
The IRS raised the standard deduction increased about 7% across every category for 2023:
- Married filing jointly: $25,900 to $27,700
- Single filers and married filing separately: $12,950 to $13,850
- Head of household: $19,400 to $20,800
Note that all these adjustments impact the taxes you file in 2024, not the taxes you’ll file in 2023.
If you’re thinking about the tax bill you’ll owe the IRS by April 2023, here are 10 ways you can lower your bill.
You can also contact Clark’s Consumer Action Center for free help and advice.
Federal taxes aren’t the only thing that historic inflation has changed in a larger-than-usual way. The annual Social Security cost-of-living (COLA) adjustment for 2023 is 8.7%.