Here are the IRS’s new federal tax brackets

By Andrew Keshner October 21, 2022

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[{"selector":"#anim-468495b9-8056-4fdd-b7d8-3246007ee9e3","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-19e46255-8be7-4338-bc87-29744bc4bd76","keyframes":{"transform":["translate3d(115.14195%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The high inflation rate will produce a 7% increase in the size of the standard deduction when Americans file their taxes on their 2023 income.

The standard deduction for individuals and married people filing separately will be $13,850 for the 2023 tax year. That’s a $900 increase from this upcoming tax season.

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For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. That’s a $1,800 increase.

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Here’s where tax brackets will be when you pay your 2023 income taxes, according to the IRS. Numbers in parentheses are married couples filing jointly.

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37%

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35%

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32%

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24%

[{"selector":"#anim-b95346e8-5c25-4463-ac71-a9fcf589c486","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5140b694-db55-4405-b029-8a0fc9ef3b47","keyframes":{"opacity":[0,1]},"delay":1000,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a8c06dc2-77de-42a0-a20f-a4f889378788","keyframes":{"transform":["translate3d(-125.95155%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-702c28a5-774a-464a-8c8b-13d0a5bb22a5","keyframes":{"opacity":[0,1]},"delay":1300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-085e6240-3610-42a8-9420-45a6e652979d","keyframes":{"transform":["translate3d(110.49180%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Curved Dotted Line Curved Dotted Line

22%

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12%

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10%

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The IRS decides its inflation adjustments by averaging an inflation gauge called the “chained Consumer Price Index,” Alex Durante, economist at the Tax Foundation, said.

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“

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Here are the IRS’s new federal tax brackets

The standard deduction for individuals and married people filing separately will be $13,850 for the 2023 tax year. That’s a $900 increase from this upcoming tax season.

For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. That’s a $1,800 increase.

Here’s where tax brackets will be when you pay your 2023 income taxes, according to the IRS. Numbers in parentheses are married couples filing jointly.

37%

Tax year ‘22: over $539,900 ($647,850)

Tax year ‘23: over $578,125 ($693,750)

35%

‘22: over $215,950 ($431,900)

‘23: over $231,250 ($462,500)

32%

‘22: over $170,050 ($340,100)

‘23: over $182,100 ($364,200)

24%

‘22: over $89,075 ($178,150)

‘23: over $95,375 ($190,750)

22%

‘22: over $41,775 ($83,550)

‘23: over $44,725 ($89,450)

12%

‘22: over $10,275 ($20,550)

‘23: over $11,000 ($22,000)

10%

‘22: over $10,275 or less ($20,550 or less)

‘23: over $11,000 or less ($22,000 or less)

The IRS decides its inflation adjustments by averaging an inflation gauge called the “chained Consumer Price Index,” Alex Durante, economist at the Tax Foundation, said.

“

“

The reason they do this is because the regular CPI is thought to overstate inflation because it doesn’t take into account the substitution that shoppers can make as costs rise.

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