
Last week the IRS released the amounts for tax brackets and standard deduction for 2022. They said due to the high amount of inflation, the brackets increase much more than normal. Unless you’ve been living under a rock, 2022 has had the biggest bout of inflation since the 70s. Due to the high inflation, the brackets are up a lot higher than in other years.
2023 Tax Brackets – Individuals
IRS Tax Brackets – Individuals |
---|
Tax Rate (%) | 2023 Tax Brackets | 2022 Tax Brackets |
---|---|---|
10% | Up to $11,000 | Up to $10,275 |
12% | $11,000 to $44,725 | $10,275 to $41,775 |
22% | $44,725 to $95,375 | $41,775 to $89,075 |
24% | $95,375 to $182,100 | $89,075 to $170,050 |
32% | $182,100 to $231,250 | $170,051 to $215,950 |
35% | $231,250 to $578,125 | $215,950 to $539,900 |
37% | Over $578,125 | Over $539,900 |
2023 Tax Brackets – Married Filing Jointly
IRS Tax Brackets – Married Filing Jointly |
---|
Tax Rate (%) | 2023 Tax Brackets | 2022 Tax Brackets |
---|---|---|
10% | Up to $22,000 | Up to $20,550 |
12% | $22,000 to $89,450 | $20,551 to $83,550 |
22% | $89,450 to $190,750 | $83,550 to $178,150 |
24% | $190,750 to $364,200 | $178,150 to $340,100 |
32% | $364,200 to $462,500 | $340,100 to $431,900 |
35% | $462,500 to $693,750 | $431,900 to $647,850 |
37% | Over $693,750 | Over $647,850 |
2023 Tax Brackets – Head of Household
You can file as head of household if you are unmarried and pay more than half the cost of a dependent, such as child, grandchild, or parent in a given year.
IRS Tax Brackets – Head of Household |
---|
Tax Rate (%) | 2023 Tax Brackets | 2022 Tax Brackets |
---|---|---|
10% | Up to $15,750 | Up to $14,650 |
12% | $15,750 to $59,850 | $14,650 to $55,900 |
22% | $59,850 to $95,350 | $55,901 to $89,050 |
24% | $95,350 to $182,100 | $89,051 to $170,050 |
32% | $182,100 to $231,250 | $170,051 to $215,950 |
35% | $231,250 to $578,100 | $215,951 to $539,900 |
37% | Over $578,100 | Over $539,900 |
Standard Deduction for 2023
The standard deduction is a deduction the government gives you that you do not need to pay tax on. Example, if you are single, the first $12,950 you make in 2022 is tax free.
IRS Standard Deduction |
---|
Filing Status | 2023 Standard Deduction | 2022 Standard Deduction |
---|---|---|
Single | $13,850 | $12,950 |
Married Filing Jointly | $27,700 | $25,900 |
Head of Household | $20,800 | $19,400 |