The IRS released inflation-adjusted marginal rates and brackets for 2023 on Tuesday, and many workers will see higher take-home pay in the new year as less tax is withheld from their paychecks.
Additionally, the agency released the standard deduction for next year. It is increasing by $900 to $13,850 for single taxpayers, and by $1,800 for married couples, to $27,700. For heads of household, the 2023 standard deduction will be $20,800. That's an increase of $1,400.
Here are the marginal rates for tax year 2023, depending on your tax status.
Single filers
- 10%: income of $11,000 or less
- 12%: income between $11,001 and $44,725
- 22%: income between $44,726 and $95,375
- 24%: income between $95,376 and $182,100
- 32%: income between $182,101 and $231,250
- 35% income between $231,251 and $578,125
- 37%: income greater than $578,125
Married filing jointly
- 10%: income of $22,000 or less
- 12%: income between $22,001 and $89,450
- 22%: income between $89,451 and $190,750
- 24%: income between $190,751 and $364,200
- 32%: income between $364,201 and $462,500
- 35% income between $462,501 and $693,750
- 37%: income greater than $693,750
Alicia Adamczyk | Yahoo Finance