Inflation Adjustments For Tax Year 2023
Inflation Adjustments For Tax Year 2023
On October 18, 2022, The Internal Revenue Service announced the 2023 tax rate schedules and other tax changes. The standard deduction and marginal rates for the tax year 2023 are listed below.
Standard Deduction:
- Married couples filing jointly: $27,700 ($1,800 increase from 2022)
- Single taxpayers and married individuals filing separately: $13,850 ($900 increase from 2022)
- Heads of households: $20,800 ($1,400 increase from 2022)
Marginal Rates:
The seven federal income tax brackets remain in 2022, with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Federal Income Tax Brackets for 2022 |
| Single | Married Filing Jointly | Married Filing Separately | Head of Household | Estates and Trusts | |
| 10% | $0 – $11,000 | $0 – $20,550 | $0 – $11,000 | $0 – $15,700 | $0 – $2,900 |
| 12% | $11,000 –$44,725 | $20,550 – $83,550 | $11,000 – $44,725 | $15,700 – $59,850 | |
| 22% | $44,725 – $95,375 | $83,550 – $178,150 | $44,725 – $95,375 | $59,850 – $95,350 | |
| 24% | $95,375 – $182,100 | $178,150 – $340,100 | $95,375 – $182,100 | $95,350 – $182,100 | $2,900 – $10,550 |
| 32% | $182,100 – $231,250 | $340,100 – $431,900 | $182,100 – $231,250 | $182,100 – $231,250 | |
| 35% | $231,250 – $578,125 | $431,900 – $647,850 | $231,250 – $346,875 | $231,250 – $578,100 | $10,550 – $14,450 |
| 37% | $578,125+ | $647,850+ | $346,875+ | $578,100+ | $14,450+ |
To read about the inflation adjustments for more than 60 tax provisions, check out IRS Revenue Procedures 2022-38. For specific advice regarding your situation, be sure to contact your tax adviser or accountant.
If you would like to know more about this topic, we encourage you to attend our live webinar on Tuesday, November 15, 2022, Year-End Tax Planning Strategies.
