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.
Table of Contents
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.
