According to the 2023 Projected U.S. Tax Rates prediction, inflation-adjusted tax amounts in the tax code will rise by roughly 7.1% from 2022, which is more than double the increase of 3% from the previous year.
Thomson Reuters Checkpoint calculated the 2023 tax brackets, as well as other inflation-adjusted tax figures, using the August 2022 inflation rate. Other estimated key figures can be found in the Payroll Update, 9/14/2022.
Income Tax Rate Brackets
Married individuals filing joint returns and surviving spouses
| Percentage | Income | Tax |
| 10% | $0 to $22,000 | – |
| 12% | $22,000 to $89,450 | $2,200.00 plus 12% of the amount over $22,000 |
| 22% | $89,450 to $190,750 | the tax is $10,294.00 plus 22% of the amount over $89,450 |
| 24% | $190,750 to $364,200 | the tax is $32,580.00 plus 24% of the amount over $190,750 |
| 32% | $364,200 to $462,500 | the tax is $74,208.00 plus 32% of the amount over $364,200 |
| 35% | $462,500 to $693,750 | the tax is $105,664.00 plus 35% of the amount over $462,500 |
| 37% | $693,750 or more | the tax is $186,601.50 plus 37% of the amount over $693,750 |
Unmarried Individuals (other than Surviving Spouses and Heads of Households)
| Percentage | Income | Tax |
| 10% | $0 to $11,000 | 10% of the amount |
| 12% | $11,000 to $44,725 | the tax is $1,100.00 plus 12% of the amount over $11,000 |
| 22% | $44,725 to $95,375 | the tax is $5,147.00 plus 22% of the amount over $44,725 |
| 24% | $95,375 to $182,100 | the tax is $16,290.00 plus 24% of the amount over $95,375 |
| 32% | $182,100 to $231,250 | the tax is $37,104.00 plus 32% of the amount over $182,100 |
| 35% | $231,250 to $578,125 | the tax is $52,832.00 plus 35% of the amount over $231,250 |
| 37% | $578,125 or more | the tax is $174,238.25 plus 37% of the amount over $578,125 |
For heads of household
| Percentage | Income | Tax |
| 10% | $0 to $15,700 | 10% of the amount |
| 12% | $15,700 to $59,850 | the tax is $1,570.00 plus 12% of the excess over $15,700 |
| 22% | $59,850 to $95,350 | the tax is $6,868.00 plus 22% of the excess over $59,850 |
| 24% | $95,350 to $182,100 | the tax is $14,678.00 plus 24% of the excess over $95,350 |
| 32% | $182,100 to $231,250 | the tax is $35,498.00 plus 32% of the excess over $182,100 |
| 35% | $231,250 to $578,100 | the tax is $51,226.00 plus 35% of the excess over $231,250 |
| 37% | $$578,100 or more | the tax is $172,623.50 plus 37% of the excess over $578,100 |
For marrieds filing separate returns
| Percentage | Income | Tax |
| 10% | $0 to $$11,000 | 10% of the amount |
| 12% | $$11,000 to $44,725 | the tax is $1,100.00 plus 12% of the excess over $11,000 |
| 22% | $44,725 to $95,375 | the tax is $5,147.00 plus 22% of the excess over $44,725 |
| 24% | $95,375 to $182,100 | the tax is $16,290.00 plus 24% of the excess over $95,375 |
| 32% | $182,100 to $231,250 | the tax is $37,104.00 plus 32% of the excess over $182,100 |
| 35% | $231,250 to $346,875 | the tax is $52,832.00 plus 35% of the excess over $231,250 |
| 37% | $346,875 or more | the tax is $93,300.75 plus 37% of the excess over $346,875 |
For estates and trusts
| Tax Payer | 2023 | 2022 |
| Joint return or surviving spouse | $27,700 | $25,900 |
| Single (not head of household or surviving spouse) | $13,850 | $12,950 |
| Head of household | $20,800 | $19,400 |
| Married filing separate returns | $13,850 | $12,950 |
Dependents.
The basic standard deduction for an individual who can be claimed as a dependent on another’s return in 2023 will be $1,250 ($1,150 in 2022), or $400 ($400 in 2022) plus the individual’s earned income, whichever is greater. However, the standard deduction cannot exceed the individual’s regular standard deduction.
Taxpayers who are elderly or blind.
For married taxpayers 65 and older or blind in 2023, the additional standard deduction will be $1,500 ($1,400 in 2022). The additional standard deduction for a single taxpayer or head of household who is 65 or older or blind in 2023 will be $1,850 ($1,750 in 2022).
Amount of exemption
While the Code Sec. 151 dependency exemption deduction is reduced to zero from 2018 to 2025, this reduction is not considered for other Code purposes, such as determining who is a qualifying relative for family credit purposes and eligibility for head-of-household status. This amount is $4,700 in 2023 ($4,400 in 2022).
Kiddie tax.
The kiddie tax exemption for 2023 would be $2,500 ($2,300 in 2022). If a child’s income is more than $1,250 but less than $12,500 ($1,150 and $11,500 in 2022), it can be included on the parent’s return for 2023.
Credit for adoption.
The credit for adopting a special-needs child in 2023 will be $15,950 ($14,890 in 2022). The most that can be credited for other adoptions is up to $15,950 ($14,890 in 2022) in qualified adoption expenses.
The credit will start to phase out for taxpayers with MAGI over $239,230 in 2023 (compared to 223,410 in 2022). Upon reaching MAGI of $279,230 ($263,410 in 2022) the phaseout will be finished.
Exclusion from adoption.
Employer adoption assistance that can be deducted from an employee’s gross income for the adoption of a child in 2023 will be $15,950 ($14,890 in 2022). In the case of a special-needs adoption, the amount that can be excluded is $15,950 ($14,890 in 2022). The exclusion is permissible regardless of expenses.
For taxpayers with MAGI in excess of $239,230 ($223,410 in 2022), the amount excludable from an employee’s gross income will begin to phase out in 2023. If MAGI is $279,230 ($263,410 in 2022), the phaseout will be complete.
MAGI limits for Roth IRA contributions
Subject to the overall IRA contribution cap, people may make nondeductible contributions to a Roth IRA.
The maximum annual contribution to a Roth IRA is phased out for taxpayers with MAGI exceeding certain thresholds for the tax year. For joint return filers with MAGI between $218,000 and $228,000 ($204,000 and $214,000 in 2022) and above, the otherwise permitted Roth IRA contributions will gradually phase out beginning in 2023.
It will be phased out gradually for single taxpayers and heads of household with MAGI between $138,000 and $153,000 ($129,000 to $144,000 in 2022). The otherwise allowable contribution for married taxpayers filing separate returns will continue to be phased out ratably for MAGI between $0 and $10,000 ($0 and $10,000 in 2022).
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