IRS tax rates 2023 (for taxes due in April 2024) announced by the IRS on October 18, 2022, for individuals, married filing jointly, married filing separately, and head of household is given below. The tax brackets clearly show that IRS has adjusted and tried to provide some relief to taxpayers to tackle the soaring inflation as IRS has provided higher federal income tax brackets and standard deductions for 2023. Refer to Revenue Procedure 2022-38 for details about these annual adjustments.
IRS Tax Rates 2023 for Single Filers, Married Couples Filing Jointly, and Heads of Households
| Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
|---|---|---|---|
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $15,700 |
| 12% | $11,000 to $44,725 | $22,000 to $89,450 | $15,700 to $59,850 |
| 22% | $44,725 to $95,375 | $89,450 to $190,750 | $59,850 to $95,350 |
| 24% | $95,375 to $182,100 | $190,750 to $364,200 | $95,350 to $182,100 |
| 32% | $182,100 to $231,250 | $364,200 to $462,500 | $182,100 to $231,250 |
| 35% | $231,250 to $578,125 | $462,500 to $693,750 | $231,250 to $578,100 |
| 37% | $578,125 or more | $693,750 or more | $578,100 or more |
2023 Standard Deduction
| Filing Status | Deduction Amount |
|---|---|
| Single | $13,850 |
| Married Filing Jointly | $27,700 |
| Head of Household | $20,800 |
2023 Alternative Minimum Tax Exemptions & Phaseout Thresholds
| Filing Status | Exemption Amount | Phaseout Thresholds |
| Unmarried Individuals | $81,300 | $578,150 |
| Married Filing Jointly | $126,500 | $1,156,300 |
2023 Earned Income Tax Credit Parameters
(i)Earned Income Tax Credit for Single or Head of Household
| Parameter | No Children | One Child | Two Children | Three or More Children |
| Income at Max Credit | $7,840 | $11,750 | $16,510 | $16,510 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 |
| Phaseout Begins | $9,800 | $21,560 | $21,560 | $21,560 |
| Phaseout Ends (Credit Equals Zero) | 17,640 | 46,560 | 52,918 | 56,838 |
(ii)Earned Income Tax Credit for Married Filing Jointly
| Income at Max Credit | $7,840 | $11,750 | $16,510 | $16,510 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 |
| Phaseout Begins | $16,370 | $28,120 | $28,120 | $28,120 |
| Phaseout Ends (Credit Equals Zero) | 24,210 | $53,120 | $59,478 | $63,398 |
IRS tax rates 2023 for Long Term Capital Gains Tax
The short-term capital gains are merged with your gross income and taxed at the same slab rates that apply to normal income. However, Long Term Capital Gains are taxed at a special rate, as given below :
| Tax Rate | For Unmarried Individuals, Taxable Income Over | For Married Individuals Filing Joint Returns, Taxable Income Over | For Heads of Households, Taxable Income Over |
|---|---|---|---|
| 0% | $0 | $0 | $0 |
| 15% | $44,625 | $89,250 | $59,750 |
| 20% | $492,300 | $553,850 | $523,050 |
2023 Qualified Business Income Deduction Thresholds
There is a threshold for the claim of 20 % QBI deduction as it starts phase-outs for taxpayers with income above $182,100 (or $364,200 for joint filers) in 2023
| Filing Status | Threshold |
| Unmarried Individuals | $182,100 |
| Married Filing Jointly | $364,200 |
2023 Gift Exemption or Exclusion Limit
The Annual Exclusion for Gifts in 2023 is the first $17,000 of gifts to any person are excluded from tax, up from $16,000. The exclusion for gifts to spouses who is not citizens of the United States. in 2023 is set at $175,000.
You can also see tax rates for the year 2022 and tax brackets for the year 2021on this site
We have also published 2023 Estate and trust tax rates and IRS retirement plans limits for 2023
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