10/21/22 Income Tax Brackets for 2023 – What You Need to Know

10/21/22 Income Tax Brackets for 2023 – What You Need to Know: Contents

Income Tax Brackets for 2023 - What You Need to Know

The seven brackets remain the same next year 10%, 12%, 22%, 24%, 32%, 35% and 37% which were set after the 2017 Tax Cuts and Jobs Act. 

The income thresholds for tax brackets have been adjusted to reflect inflation or the cost of living. This is based on the Chained Consumer Price Index created by the Bureau of Labor Statistics through continuously tracking the changing price of a basket of goods and consumer purchasing behavior in response to that change.

Also, the standard deduction will increase in 2023 by $900 to $13,850 for single filer or married but filing separately, by $1,400 to $20,800 for head of households and $1,800 to $27,700 for married taxpayers filing jointly.

An additional standard deduction of $1,500 will apply to those who are either 65 and older or blind, and the amount doubles if both apply to a taxpayer in 2023.  So the basic standard deduction will look as follows:

Filing status20222023
Single filers & Married couples filing separately$12,950$13,850
Married couples filing jointly & surviving spouses$25,900$27,700
Head of Household$19,400$20,800

Below are the 2022 Tax Bracket Income Thresholds:

Tax rateSingle filers & MFSMarried filing jointly
37%for incomes over $539,900for incomes over $647,850
35%for incomes over $215,950for incomes over $431,900
32%for incomes over $170,050for incomes over $340,100
24%for incomes over $89,075for incomes over $178,150
22%for incomes over $41,775for incomes over $83,550
12%for incomes over $10,275for incomes over $20,550
10%incomes of $10,275 or lessfor incomes of $20,550 or less

And here are the 2023 Tax Bracket Income Thresholds:

Tax rateSingle filers & MFSMarried filing jointly
37%for incomes over $578,125for incomes over $693,750
35%for incomes over $231,250for incomes over $462,500
32%for incomes over $182,100for incomes over $364,200
24%for incomes over $95,375for incomes over $190,750
22%for incomes over $44,725for incomes over $89,450
12%for incomes over $11,000for incomes over $22,000
10%incomes of $11,000 or lessincomes of $22,000 or less

Click here to read the article: 

Income tax brackets for 2023: What are the main changes compared to 2022? – AS USA

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