IRS releases new income tax brackets for 2023

Iman Palm
·2 min read
2.4k

The Internal Revenue Service released this week higher federal tax brackets and standard deductions for 2023 amid soaring inflation.

The income thresholds have increased for each bracket, which will apply for tax year 2023 and returns filed in 2024, CNBC reported.

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The tax brackets show how much a taxpayer will owe in federal income taxes on each “taxable income” portion, which is calculated by adding up all income sources and then subtracting any standard deductions, according to H&R Block.

These are the newly released federal tax brackets for tax year 2023

Married

$22,000 or less

10% of the taxable income

$22,001 to $89,450

$2,200 plus 12% of the amount over $22,000

$89,451 to $190,750

$10,294 plus 22% of the amount over $89,450

$190,751 to $364,200

$32,580 plus 24% of the amount over $190,750

$364,201 to $462,500

$74,208 plus 32% of the amount over $364,200

$462,501 to $693,750

$105,664 plus 35% of the amount over $462,500

$693,751 or more

$186,601.50 plus 37% of the amount over $693,750

Single:

$11,000 or less

10% of the taxable income

$11,001 to $44,725

$1,100 plus 12% of the amount over $11,000

$44,726 to $95,375

$5,147 plus 22% of the amount over $44,725

$95,376 to $182,100

$16,290 plus 24% of the amount over $95,375

$182,101 to $231,250

$37,104 plus 32% of the amount over $182,100

$231,251 to $578,125

$52,832 plus 35% of the amount over $231,250

$578,126 or more

$174,238.25 plus 37% of the amount over $578,125

The complete breakdown can be found here.

The standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, which is an increase from $25,900 in 2022.

Single filers can claim $13,850, an increase from $12,950 in 2022.

The tax agency also increased the figures for provisions like alternative minimum tax.

While the upcoming tax season has yet to start, Californians who have yet to file their 2022 taxes have until Oct. 16 to do so.

The tax extension was granted to residents impacted by severe weather during the winter season last year.

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