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 status | 2022 | 2023 |
|---|---|---|
| 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 rate | Single filers & MFS | Married filing jointly |
|---|---|---|
| 37% | for incomes over $539,900 | for incomes over $647,850 |
| 35% | for incomes over $215,950 | for incomes over $431,900 |
| 32% | for incomes over $170,050 | for incomes over $340,100 |
| 24% | for incomes over $89,075 | for incomes over $178,150 |
| 22% | for incomes over $41,775 | for incomes over $83,550 |
| 12% | for incomes over $10,275 | for incomes over $20,550 |
| 10% | incomes of $10,275 or less | for incomes of $20,550 or less |
And here are the 2023 Tax Bracket Income Thresholds:
| Tax rate | Single filers & MFS | Married filing jointly |
|---|---|---|
| 37% | for incomes over $578,125 | for incomes over $693,750 |
| 35% | for incomes over $231,250 | for incomes over $462,500 |
| 32% | for incomes over $182,100 | for incomes over $364,200 |
| 24% | for incomes over $95,375 | for incomes over $190,750 |
| 22% | for incomes over $44,725 | for incomes over $89,450 |
| 12% | for incomes over $11,000 | for incomes over $22,000 |
| 10% | incomes of $11,000 or less | incomes of $22,000 or less |
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Income tax brackets for 2023: What are the main changes compared to 2022? – AS USA
