2023 IRS Income Tax Brackets vs. 2022 Tax Brackets

0

Tax brackets for income earned in 2022

  • 37% for income over $539,900 ($647,850 for married couples filing jointly)
  • 35% for income over $215,950 ($431,900 for married couples filing jointly)
  • 32% for income over $170,050 ($340,100 for married couples filing jointly)
  • 24% for income over $89,075 ($178,150 for married couples filing jointly)
  • 22% for income over $41,775 ($83,550 for married couples filing jointly)
  • 12% for income over $10,275 ($20,550 for married couples filing jointly)
  • 10% for income of $10,275 or less ($20,550 for married couples filing jointly

Married people who deposit separately pay at the same rate as single people. Source: Tax Department

Tax brackets for income earned in 2023

  • 37% for income over $578,125 ($693,750 for married couples filing jointly)
  • 35% for income over $231,250 ($462,500 for married couples filing jointly)
  • 32% for income over $182,100 ($364,200 for married couples filing jointly)
  • 24% for income over $95,375 ($190,750 for married couples filing jointly)
  • 22% for income over $44,725 ($89,450 for married couples filing jointly)
  • 12% for income over $11,000 ($22,000 for married couples filing jointly)
  • 10% for income of $11,000 or less ($22,000 for married couples filing jointly)

Married people who deposit separately pay at the same rate as single people. Source: Tax Department

See more grocery deals >

Additionally, the standard deduction will increase to $13,850 for single filers for the 2023 tax year, up from $12,950 the previous year. The standard deduction for couples filing jointly will increase to $27,700 in 2023 from $25,900 in tax year 2022. Single filers age 65 and older who are not a surviving spouse can increase the standard deduction by $1,850. Each joint filer age 65 or older can increase the standard deduction by $1,500 each, for a total of $3,000 if both joint filers are age 65 or older. You can also itemize individual tax deductions, for things like charitable donations, but they have to total more than the standard deduction to make the breakdown worthwhile.

The IRS uses the chained consumer price index (CPI) to measure inflation, as required by the 2017 tax reform. Like the better known consumer price index, the chained CPI measures price variations of approximately 80,000 items. The chained CPI takes into account that when the prices of certain items increase, consumers often replace them with other items. If the price of beef rises, for example, people turn to chicken.

If you’re not an economist, the main difference between the two measures is that, over time, the chain CPI increases at a slower rate than the traditional CPI – which, to be precise, is called the l consumer price index for all urban dwellers. Consumers, or CPI-U. From 20 September 12 to 20 September 22, the CPI-U increased by 28.3% and the chain-linked CPI by only 24.8%, a difference of 3.5 percentage points.

If you paid a large tax bill in 2022, you should speak with a tax advisor about how to reduce your bill in 2023. It’s probably easier to have more money withheld from each paycheck than to face a big tax bill next year. A good first step is to look at the amount of tax taken from your salary. The IRS has a free retainer estimator who can tell you how much you should have withdrawn.

Share.

Comments are closed.