On October 18, 2022, the IRS announced its annual tax inflation adjustments for 2023, including tax rate schedules and other changes. In this blog, we’re going to review the 2023 tax brackets for all groups of taxpayers. Also, we’ll keep you updated on tax deadlines and extensions, along with the required IRS forms to file.
The Key Changes to 2023 Tax Brackets
- The effective tax rates for 2023 (10%, 12%, 22%, 24%, 32%, 35%, and 37%) will remain unchanged. However, the income tax brackets will increase.
The top tax rate remains 37% for individual single taxpayers whose income exceeds $578,125 ($693,750 for married couples filing jointly). - An increase in standard deduction amounts:
– $13,850 for single taxpayers and married individuals filing separately (up by $900 from the prior year);
– $20,800 for heads of households (up by $1,400 from the prior year);
– $27,700 for married couples filing jointly (up by $1,800 from the prior year). - Tax credits for energy-efficient home improvements are extended and expanded by the Inflation Reduction Act in the tax year 2023.
- There are changes to the alternative minimum tax, estate tax exemption, earned income tax credit, and flexible spending account limits.
For more information on other tax items, see the IRS Revenue Procedure 2022-38.
Tax Brackets 2023 vs. 2022
Every year, the IRS adjusts over 60 tax provisions for inflation to reduce the so-called “bracket creep.” Without these adjustments, taxpayers will be pushed into higher tax brackets not because of increased income but because of inflation. Income thresholds for tax brackets will increase by 7% in 2023 to keep pace with inflation.
In 2023, the tax rates will remain the same, but the federal income tax brackets will increase. These tax brackets are marginal, meaning that different rates are paid on different amounts of taxable income and depend on the taxpayer’s filing status.
Below you will find the comparison of the 2023 vs. 2022 federal income tax brackets for all groups of taxpayers.
Single Filing Individual Return
| Tax Rate | 2023 Taxable Income | 2022 Taxable Income |
| 10% | $0 to $11,000 | $0 to $10,275 |
| 12% | Over $11,000 to $44,725 | Over $10,275 to $41,775 |
| 22% | Over $44,725 to $95,375 | Over $41,775 to $89,075 |
| 24% | Over $95,375 to $182,100 | Over $89,075 to $170,050 |
| 32% | Over $182,100 to $231,250 | Over $170,050 to $215,950 |
| 35% | Over $231,250 to $578,125 | Over $215,950 to $539,900 |
| 37% | Over $578,125 | Over $539,900 |
Married Filing Joint Returns
| Tax Rate | 2023 Taxable Income | 2022 Taxable Income |
| 10% | $0 to $22,000 | $0 to $20,550 |
| 12% | Over $22,000 to $89,450 | Over $20,550 to $83,550 |
| 22% | Over $89,450 to $190,750 | Over $83,550 to $178,150 |
| 24% | Over $190,750 to $364,200 | Over $178,150 to $340,100 |
| 32% | Over $364,200 to $462,500 | Over $340,100 to $431,900 |
| 35% | Over $462,500 to $693,750 | Over $431,900 to $647,850 |
| 37% | Over $693,750 | Over $647,850 |
Married Filing Separate Returns
| Tax Rate | 2023 Taxable Income | 2022 Taxable Income |
| 10% | $0 to $11,000 | $0 to $10,275 |
| 12% | Over $11,000 to $44,725 | Over $10,275 to $41,775 |
| 22% | Over $44,725 to $95,375 | Over $41,775 to $89,075 |
| 24% | Over $95,375 to $182,100 | Over $89,075 to $170,050 |
| 32% | Over $182,100 to $231,250 | Over $170,050 to $215,950 |
| 35% | Over $231,250 to $346,875 | Over $215,950 to $323,925 |
| 37% | Over $346,875 | Over $323,925 |
Heads of Households
| Tax Rate | 2023 Taxable Income | 2022 Taxable Income |
| 10% | $0 to $15,700 | $0 to $14,650 |
| 12% | Over $15,700 to $59,850 | Over $14,650 to $55,900 |
| 22% | Over $59,850 to $95,350 | Over $55,900 to $89,050 |
| 24% | Over $95,350 to $182,100 | Ove r$89,050 to $170,050 |
| 32% | Over $182,100 to $231,250 | Over $170,050 to $215,950 |
| 35% | Over $231,250 to $578,100 | Over $215,950 to $539,900 |
| 37% | Over $578,100 | Over $539,900 |
The Standard Deduction Rates
Overall, compared to 2022, standard deductions for 2023 will increase by $900 for single filers, by $1,400 for heads of households, and by $1,800 for joint filers. The personal exemption for 2023 will remain at $0, as stipulated by the Tax Cuts and Jobs Act of 2017 (TCJA).
The Standard Deduction is the baseline amount of income that tax filers can collect tax-free. Taxpayers may choose either itemized deductions or the standard deduction but usually choose the one that results in less tax payable.
| Filing Status | 2023 Deduction Amount | 2022 Deduction Amount |
| Single Filers / Married Filing Separately | $13,850 | $12,950 |
| Married Filing Jointly | $27,700 | $25,900 |
| Head of Household | $20,800 | $19,400 |
Source: IRS
Sources: IRS, Jacob Bogage // The Washington Post
Specific parts of the tax code are tied to inflation to stop rising prices from causing higher taxes. Taxpayers will see the new figures in withholding statements on paychecks starting in January 2023, with workers securing more take-home pay.
Listed below are the tax rate schedules for the 2023 tax season you’ll use to prepare the tax returns filed in 2024:
Tax Brackets for the Tax Year 2023 (for taxes due in April 2024)
| Income Tax Rates | Taxpayer’s Filing Status | |||
| Schedule Y
Single Individual |
Schedule Y-1
Married Joint Return / Qualifying Widow(er) |
Schedule Y-2
Married Separate Return |
Schedule Z
Head of Household |
|
| Amount of taxable income / Tax Due | ||||
| 10% | $11,000 or less
10% of taxable income |
$22,000 or less
10% of taxable income |
$11,000 or less
10% of taxable income |
$15,700 or less
10% of taxable income |
| 12% | $11,001 – $44,725
$1,100 + 12% of the amount over $11,000 |
$22,001 – $89,450
$2,200 + 12% of the amount over $22,000 |
$11,001 – $44,725
$1,100 + 12% of the amount over $11,000 |
$15,701 – $59,850
$1,570 + 12% of the amount over $15,700 |
| 22% | $44,726 – $95,375
$5,147 + 22% of the amount over $44,725 |
$89,451 – $190,750
$10,294 + 22% of the amount over $89,450 |
$44,726 – $95,375
$5,147 + 22% of the amount over $44,725 |
$59,851 – $95,350
$6,868 + 22% of the amount over $59,850 |
| 24% | $95,376 – $182,100
$16,290 + 24% of the amount over $95,375 |
$190,751 – $364,200
$32,580 + 24% of the amount over $190,750 |
$95,376 – $182,100
$16,290 + 24% of the amount over $95,375 |
$95,351 – $182,100
$14,678 + 24% of the amount over $95,350 |
| 32% | $182,101 – $231,250
$37,104 + 32% of the amount over $182,100 |
$364,201 – $462,500
$74,208 + 32% of the amount over $364,200 |
$182,101 – $231,250
$37,104 + 32% of the amount over $182,100 |
$182,101 – $231,250
$35,498 + 32% of the amount over $182,100 |
| 35% | $231,251 – $578,125
$52,832 + 35% of the amount over $231,250 |
$462,501 – $693,750
$105,664 + 35% of the amount over $462,500 |
$231,251 – $346,875
$52,832 + 35% of the amount over $231,250 |
$231,251 – $578,100
$51,226 + 35% of the amount over $231,250 |
| 37% | over $578,126
$174,238.25 + 37% of the amount over $578,125 |
over $693,751
$186,601.50 + 37% of the amount over $693,750 |
over $346,876
$93,300.75 plus 37% of the amount over $346,875 |
over $578,101
$172,623.50 + 37% of the amount over $578,100 |
Source: IRS
For taxes due in April 2023, please see the 2022 income tax rates and brackets.
2023 Tax Deadlines and Dates
| Type of entity | Filing deadline | IRS Form | Filing extension deadline | IRS Tax Extension Form |
| Individual/Sole proprietor | January 31, 2023 April 18, 2023 |
Form 1099, _________ Form 1040, |
October 16, 2023 | Form 4868 (deadline to file your extended 2022 tax return) |
| Partnership | March 15, 2023 | Form 1065 | September 15, 2023 | Form 7004 |
| S-corporation | March 15, 2023 | Form 1120-S | September 15, 2023 | Form 7004 |
| C-corporation | April 18, 2023 | Form 1120 | October 16, 2023 | Form 7004 |
- Individuals have to submit their income tax returns by April 15, unless the due date falls on a weekend or holiday. An extension can be requested using Form 4868 until October 15.
- Independent contractors, gig workers, and self-employed individuals usually have to make tax payments at pre-set dates every quarter throughout the year.
- Partnerships (including multi-member LLCs) and S-Corps filing deadlines are typically March 15 unless they operate on a fiscal year. A six-month extension to September 15 (or five months after the original deadline) can be requested using Form 7004.
For more information:
1. Learn how to fill out and submit the top 10 IRS forms for individuals and businesses
2. See the 2022 tax brackets and filing deadlines.
Filing tax returns electronically with pdfFiller
The IRS supports electronic filing for IRS forms. You can fill out and submit W-2, 1099-MISC, 1099-NEC, and Form 941 directly to the IRS using pdfFiller. All you have to do is fill out your form, add your personal details and other information on the final page, and send it off to the IRS. pdfFiller will update you via email when your form has been submitted and approved.
Once you’ve finished filing the form, you can share it in a few clicks. It’s possible to send a PDF by email, text message, fax, USPS mail, or notarize it online — right from your account.
