With inflation going up, people get pushed into higher income tax brackets as well. To regulate the impact of inflation, the income tax bracket gets adjusted by the IRS for each category.
Before 2018, the IRS used to adjust these brackets by CPI (Consumer Price Index). With changes in TCJA, now it uses C-CPI (Chained Consumer Price Index) to adjust tax brackets.
However, Tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) maintain the same percentage in 2023 as well, and they have NOT changed since 2018.
Also Read Previous Years Tax Brackets Comparison:
- 2022 Tax Bracket Vs 2021 Tax Bracket
- 2021 Tax Bracket Vs 2020 Tax Bracket
- 2020 Tax Bracket Vs 2019 Tax Bracket
Single Tax Payers
Following are some of the insights into the tax bracket 2023 for single taxpayers:
- Tax Rates do NOT change in the year 2023 for single taxpayers, however, inflation adjustments happen in all the Tax Brackets.
- As the tax bracket increases, the tax bracket adjustment increases as well.
- The lowest increase (+$725) appears in the first tax bracket ($0 to $10,275).
- The highest increase (+$38225) appears in the last tax bracket ($539,901 and upwards).
| 2022 Tax Rate | 2022 Tax Bracket | 2023 Tax Rate | 2023 Tax Bracket | Tax Bracket Difference |
|---|---|---|---|---|
| 10% | Up to $10,275 | 10% | Up to $11,000 | Top: 0 Bottom: +$725 |
| 12% | $10,276-$41,775 | 12% | $11,001 to $44,725 | Top: +$725 Bottom: +$2950 |
| 22% | $41,776-$89,075 | 22% | $44,726 to $95,375 | Top: +$2950 Bottom: +$6300 |
| 24% | $89,076-$170,050 | 24% | $95,376 to $182,100 | Top: +$6300 Bottom: +$12050 |
| 32% | $170,051-$215,950 | 32% | $182,101 to $231,250 | Top: +$12050 Bottom: +$15300 |
| 35% | $215,951-$539,900 | 35% | $231,251 to $578,125 | Top: +$15300 Bottom: +$38225 |
| 37% | $539,901 or Above | 37% | $578,126 or Above | Top: +$38225 |
Married Couples Filing Jointly or Qualifying Widow
Following are some of the insights into the 2023 tax brackets for married couples filing jointly:
- Tax Rates do NOT change in the year 2023 for married couples filing jointly, however, inflation adjustments happen in all the Tax Brackets.
- As the tax bracket increases, the tax bracket adjustment increases as well.
- The lowest increase ($1,450) appears in the first tax bracket ($0 to $22,000).
- The highest increase (+$45,900) appears in the last tax bracket $693,751 and upwards).
| 2022 Tax Rate | 2022 Tax Bracket | 2023 Tax Rate | 2023 Tax Bracket | Tax Bracket Difference |
|---|---|---|---|---|
| 10% | Up to $20,550 | Up to $22,000 | 10% | Top: 0 Bottom: +$1,450 |
| 12% | $20,551-$83,550 | $22,001 to $89,450 | 12% | Top: +$1,450 Bottom: +$5,900 |
| 22% | $83,551-$178,150 | $89,451 to $190,750 | 22% | Top: +$5,900 Bottom: +$12,600 |
| 24% | $178,151-$340,100 | $190,751 to $364,200 | 24% | Top: +$12,600 Bottom: +$24,100 |
| 32% | $340,101-$431,900 | $364,201 to $462,500 | 32% | Top: +$24,100 Bottom: +$30,600 |
| 35% | $431,901-$647,850 | $462,501 to $693,750 | 35% | Top: +$30,600 Bottom: +$45,900 |
| 37% | $647,851 or Above | $693,751 or Above | 37% | Start: +$45,900 |
Married Couples Filing Separately
Following are some of the insights into the 2023 Tax Brackets for Married Couples Filing Separately:
- Tax Rates do NOT change in the year 2023 for Married Couples Filing Separately, however, inflation adjustments happen in all the Tax Brackets.
- As the tax bracket increases, the tax bracket adjustment increases as well.
- The lowest increase (+$725) appears in the first tax bracket ($0 to $$11,000).
- The highest increase (+$13,950) appears in the last tax bracket ($346,876 and upwards).
| 2022 Tax Rate | 2022 Tax Bracket | 2023 Tax Rate | 2023 Tax Bracket | Tax Bracket Difference |
|---|---|---|---|---|
| 10% | Up to $10,275 | 10% | Up to $11,000 | Top: 0 Bottom: +$725 |
| 12% | $10,276-$41,775 | 12% | $11,001-$44,725 | Top: +$725 Bottom: +$2,950 |
| 22% | $41,776-$89,075 | 22% | $44,726-$95,375 | Top: +$2,950 Bottom: +$6,300 |
| 24% | $89,076-$170,050 | 24% | $95,376-$182,100 | Top: +$6,300 Bottom: +$12,050 |
| 32% | $170,051-$215,950 | 32% | $182,101-$231,250 | Top: +$12,050 Bottom: +$15,300 |
| 35% | $215,951-$323,925 | 35% | $231,251-$346,875 | Top: +$15,300 Bottom: +$22,950 |
| 37% | $332,926 or Above | 37% | $346,876 or Above | Top: +$13,950 |
Head of the Household
Following are some of the insights into the 2023 tax brackets for Head of the Household:
- Tax Rates do NOT change in the year 2023 for the Head of the Household, however, inflation adjustments happen in all the Tax Brackets.
- As the tax bracket increases, the tax bracket adjustment increases as well.
- The lowest increase (+$1,050) appears in the first tax bracket (Up to $15,700).
- The highest increase (+$38,200) appears in the last tax bracket ($578,101 and upwards).
| 2022 Tax Rate | 2022 Tax Bracket | 2023 Tax Rate | 2023 Tax Bracket | Tax Bracket Difference |
|---|---|---|---|---|
| 10% | Up to $14,650 | 10% | Up to $15,700 | Top: 0 Bottom: +$1,050 |
| 12% | $14,651-$55,900 | 12% | $15,701-$59,850 | Top: +$1,050 Bottom: +$3,950 |
| 22% | $55,901-$89,050 | 22% | $59,851-95,350 | Top: +$3,950 Bottom: +$6,300 |
| 24% | $89,051-$170,050 | 24% | $95,351-$182,100 | Top: +$6,300 Bottom: +$12,050 |
| 32% | $170,051-$215,950 | 32% | $182,101-$231,250 | Top: +$12,050 Bottom: +$15,300 |
| 35% | $215,951-$539,900 | 35% | $231,251-$578,100 | Top: +$15,300 Bottom: +$38,200 |
| 37% | $539,901 or Above | 37% | $578,101 or Above | Top: +$38,200 |
How to File Your Taxes
Following are some of the steps to file your taxes:
- Step 1: Decide your income tax bracket.
- Step 2: Decide your tax rate for the respective tax bracket.
- Step 3: Find the relevant tax forms.
- Step 4: Consult a CPA, filing your taxes with inaccurate processes may result in penalties.
Find out 2023 Tax Due Dates & Deadlines
It is also important to find the possible tax deductions and credits that you may claim to avoid paying extra taxes and save money. To claim these tax write-offs, contact a tax consultant who can save your money with his/her expertise.
