Tax Changes, Tax Brackets and Tax Rates for 2023 Tax year
Key Points
We know what you’re thinking; you’ve only recently filed your 2022 form 1040 (or 1040-SR tax return if you’re a senior) and already, it’s time to start looking down the road and situating yourself for your 2023 returns. Healthy tax planning means understanding the differences between your last tax year filing and your upcoming tax year filing; with a high level of awareness as to the new 2023 tax year updates, you can be better prepared for your filings.
The U.S. government’s colossal end-of-the-year funding legislation includes with it, quite a few retirement provisions and some of the more important provisions will affect your 2023 tax filing. Last year’s Inflation Reduction Act included green-energy tax breaks for purchases of electric vehicles and making home improvements. Additionally, 2022’s high inflation numbers caused the income tax brackets and other inflation-adjusted figures to soar.
We’ve laid out the 2023 tax brackets and corresponding rates to help make things a little easier for you. Should you want to inquire as to other changes for the 2023 tax year such as long-term capital gain tax rates, standard deducations, the residential clean energy credits, the energy efficient home improvement credit or the clean vehicle credit, please contact us and we’ll answer any questions you have.
2022 Tax Brackets and Tax Owed
You can use the 2022 tax tables below to find your tax bracket. These brackets are for taxes that were due April 18, 2023.
2022 tax table: single filers
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $539,900 | $49,335.50 plus 35% of the amount over $215,950 |
| 37% | $539,901 or more | $162,718 plus 37% of the amount over $539,900 |
2022 tax table: married, filing jointly
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $20,550 | 0% of taxable income |
| 12% | $20,551 to $83,550 | $2,055 plus 12% of the amount over $20,550 |
| 22% | $83,551 to $178,150 | $9,615 plus 22% of the amount over $83,550 |
| 24% | $178,151 to $340,100 | $30,427 plus 24% of the amount over $178,150 |
| 32% | $340,101 to $431,900 | $69,295 plus 32% of the amount over $340,100 |
| 35% | $431,901 to $647,850 | $98,671 plus 35% of the amount over $431,900 |
| 37% | $647,851 or more | $174,253.50 plus 37% of the amount over $647,850 |
2022 tax table: married, filing separately
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $10,275 | 10% of taxable income |
| 12% | $10,276 to $41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| 22% | $41,776 to $89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| 24% | $89,076 to $170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| 32% | $170,051 to $215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $323,925 | $49,335.50 plus 35% of the amount over $215,950 |
| 37% | $323,926 or more | $87,126.75 plus 37% of the amount over $323,925 |
2022 tax table: head of household
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $14,650 | 10% of taxable income |
| 12% | $14,651 to $55,900 | $1,465 plus 12% of the amount over $14,650 |
| 22% | $55,901 to $89,050 | $6,415 plus 22% of the amount over $55,900 |
| 24% | $89,051 to $170,050 | $13,708 plus 24% of the amount over $89,050 |
| 32% | $170,051 to $215,950 | $33,148 plus 32% of the amount over $170,050 |
| 35% | $215,951 to $539,900 | $47,836 plus 35% of the amount over $215,950 |
| 37% | $539,901 or more | $161,218.50 plus 37% of the amount over $539,900 |
2023 Tax Brackets and Tax Owed
For the 2023 tax year, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%, the same as in tax year 2022. Tax returns for the 2023 calendar year are due in April 2024 or October 2024 with an extension.
The income thresholds for each tax bracket were adjusted significantly due to the record-high inflation in 2022, which means that some people might be in a lower tax bracket than they were previously.
2023 tax table: single filers
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $11,000 | 10% of taxable income |
| 12% | $11,001 to $44,725 | $1,100 plus 12% of the amount over $11,000 |
| 22% | $44,726 to $95,375 | $5,147 plus 22% of the amount over $44,725 |
| 24% | $95,376 to $182,100 | $16,290 plus 24% of the amount over $95,375 |
| 32% | $182,101 to $231,250 | $37,104 plus 32% of the amount over $182,100 |
| 35% | $231,251 to $578,125 | $52,832 plus 35% of the amount over $231,250 |
| 37% | $578,126 or more | $174,238.25 plus 37% of the amount over $578,125 |
2023 tax table: married, filing jointly
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $22,000 | 0% of taxable income |
| 12% | $22,001 to $89,450 | $2,200 plus 12% of the amount over $22,000 |
| 22% | $89,451 to $190,750 | $10,294 plus 22% of the amount over $89,4500 |
| 24% | $190,751 to $364,200 | $32,580 plus 24% of the amount over $190,7500 |
| 32% | $364,201 to $462,500 | $74,208 plus 32% of the amount over $364,200 |
| 35% | $462,501 to $693,750 | $105,664 plus 35% of the amount over $462,500 |
| 37% | $693,751 or more | $186,601.50 + 37% of the amount over $693,750 |
2023 tax table: married, filing separately
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $11,000 | 10% of taxable income |
| 12% | $11,001 to $44,725 | $1,100 plus 12% of the amount over $11,000 |
| 22% | $44,726 to $95,375 | $5,147 plus 22% of the amount over $44,725 |
| 24% | $95,376 to $182,100 | $16,290 plus 24% of the amount over $95,375 |
| 32% | $182,101 to $231,250 | $37,104 plus 32% of the amount over $182,100 |
| 35% | $231,251 to $346,875 | $52,832 plus 35% of the amount over $231,250 |
| 37% | $346,876 or more | $93,300.75 plus 37% of the amount over $346,875 |
2023 tax table: head of household
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $15,700 | 10% of taxable income |
| 12% | $15,701 to $59,850 | $1,570 plus 12% of the amount over $15,700 |
| 22% | $59,851 to $95,350 | $6,868 plus 22% of the amount over $59,850 |
| 24% | $95,351 to $182,100 | $14,678 plus 24% of the amount over $95,350 |
| 32% | $182,101 to $231,250 | $35,498 plus 32% of the amount over $182,100 |
| 35% | $231,251 to $578,100 | $51,226 plus 35% of the amount over $231,250 |
| 37% | $578,101 or more | $172,623.50 plus 37% of the amount over $578,100 |
In a Nutshell
Staying up-to-date with annual tax filing policies can have a tremendously positive impact on your tax planning as well as your annual tax filings; this knowledge can be a determining factor in hurting or helping your bottom line .
