CURRENT TAX RATES
Current rates information provided by IRS
2023 Tax Brackets
Income Tax Brackets and Rates
The 2023 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2023 are… 10% – 12% – 22% – 24% – 32% – 35% – 37% The marginal income tax rate of 37% will apply to taxpayers with taxable income above $539,900 (single filers), and $693,750 is the target for married couples filing jointly…(SEE Table 1)
Table 1. Tax Brackets and Rates, 2023 (Source: IRS)
| Rate | Single Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over |
|---|---|---|---|
|
10% |
Up to $11,000 |
Up to $22,000 |
Up 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% |
At or above $578,125 |
At or above $693,750 |
At or above $578,100 |
Table 2. 2023 Standard Deduction and Personal Exemption (Source: IRS)
2023 has standard deductions for single filers increasing by $900; $1800 for married couples filing jointly. Personal exemptions for 2023 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )
| Filing Status | Deduction Amount |
|---|---|
|
Single |
$13,850 |
|
Married Filing Jointly |
$27,700 |
|
Head of Household |
$20,800 |
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at .IRS.Gov (SEE Table 3)
Table 3. 2023 Alternative Minimum Tax Exemptions (Source:IRS)
| Filing Status | Exemption Amount |
|---|---|
|
Unmarried Individuals |
$81,300
|
|
Married Filing Jointly |
$126,500 |
2023 still sees the AMT rate at 28%. This rate applies to excess AMTI of $220,700 for all taxpayers ($110,350 for married couples who file separate returns).
The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2023, the exemption will start phasing out at $578,150 in AMTI for single filers and $1,156,300 for married taxpayers filing jointly (SEE Table 4).
The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2023, the exemption will start phasing out at $578,150 in AMTI for single filers and $1,156,300 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2023 Alternative Minimum Tax Exemption Phaseout Thresholds
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$578,150 |
|
Married Filing Jointly |
$1,156,300 |
The 2023 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $560 (no children) (SEE Table 5). The maximum credit is $3,995 for one child, $6,604 for two children, and $7,430 for three or more children. Increases are nominal.
Table 5. 2023 Earned Income Tax Credit Parameters
| Filing Status | Single or Head of Household | 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 0 (Zero)) |
$17,640 |
$46,560 |
$52,918 |
$56,838 |
|
|
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
|
Within the Tax Cuts and Jobs Act, there is an inclusion of a 20 percent deduction in 2023 for pass-through businesses with $182,100 of qualified business income for single taxpayers and $364,200 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2023 Qualified Business Income Deduction Thresholds (Source:IRS)
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$182,100
|
|
Married Filing Jointly |
$364,200
|
The maximum Child Tax Credit for 2023 is $2,000 per child who qualifies, with no adjustments for inflation. The amount that may be refunded for the Child Tax Credit is adjusted for inflation and increases from $1,500 to $1,600 in 2023.
For 2023, the first $17,000 of gifts to any person is excluded from tax. Exclusions are increased to $175,000 from $164,000 in 2023 for gifts to spouses who are not citizens of the United States.
Capital Gains, long term, are taxed using different rates and brackets compared to standard income.
Table 7. 2023 Capital Gains Tax Rates & Brackets (Source:IRS)
| Unmarried Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over | |
|---|---|---|---|
|
0% |
Up to $0 |
Up to $0 |
Up to $0
|
|
15% |
$44,625 |
$89,250 |
$59,750 |
|
20% |
$492,300 |
$553,850 |
$523,050 |
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2022 Tax Brackets
Income Tax Brackets and Rates
2022 income limits for all tax brackets and all filers, adjusted for inflation. Seven federal income tax rates in 2022 are as follows: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The marginal income tax rate of 37 percent will only apply to taxpayers with taxable income above $539,900 (single filers), and $647,850 is the target for married couples filing jointly…(SEE Table 1)
Table 1. Tax Brackets and Rates, 2022 (Source: IRS)
| Rate | Single Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over |
|---|---|---|---|
|
10% |
Up to $10,275 |
Up to $20,550 |
Up to $14,650 |
|
12% |
$10,275 to $41,775 |
$20,550 to $83,550 |
$14,650 to $55,900 |
|
22% |
$41,775 to $89,075 |
$83,550 to $178,150 |
$55,900 to $89,050 |
|
24% |
$89,075 to $170,050 |
$178,150 to $340,100 |
$89,050 to $170,050 |
|
32% |
$170,050 to $215,950 |
$340,100 to $431,900 |
$170,050 to $215,950 |
|
35% |
$215,950 to $539,900 |
$431,900 to $647,850 |
$215,950 to $539,900 |
|
37% |
Over $539,900 |
Over $647,850 |
Over $539,900 |
2023 has standard deductions for single filers increasing by $900; $1800 for married couples filing jointly. Personal exemptions for 2023 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )
Table 2. 2022 Standard Deduction and Personal Exemption (Source: IRS)
| Filing Status | Deduction Amount |
|---|---|
|
Single |
$12,950
|
|
Married Filing Jointly |
$25,900
|
|
Head of Household |
$19,400 |
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at .IRS.Gov (SEE Table 3)
Table 3. 2022 Alternative Minimum Tax Exemptions (Source:IRS)
| Filing Status | Exemption Amount |
|---|---|
|
Unmarried Individuals |
$75,900
|
|
Married Filing Jointly |
$118,100 |
In 2022, the 28% AMT rate applies to excess AMTI of $206,100 for all taxpayers ($103,050 for married couples filing separate returns).
AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2022, the exemption will start phasing out at $539,900 in AMTI for single filers and $1,079,800 for married taxpayers filing jointly (SEE Table 4).
AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2022, the exemption will start phasing out at $539,900 in AMTI for single filers and $1,079,800 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2022 Alternative Minimum Tax Exemption Phaseout Thresholds
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$539,900
|
|
Married Filing Jointly |
$1,079,800 |
The 2022 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $560 (no children) (SEE Table 5). The maximum credit is $3,733 for one child, $6,164 for two children, and $6,935 for three or more children. These are small increases compared to 2021.
Table 5. 2022 Earned Income Tax Credit Parameters
| Filing Status | Single or Head of Household | No Children | One Child | Two Children | Three or More Children |
|---|---|---|---|---|---|
|
|
Income at Max Credit |
$7,320 |
$10,980 |
$15,410 |
$15,410 |
|
|
Maximum Credit |
$560 |
$3,733 |
$6,164 |
$6,935 |
|
|
Phaseout Begins |
$9,160 |
$20,130 |
$20,130 |
$20,130 |
|
|
Phaseout Ends (Credit Equals 0 (Zero)) |
$16,480 |
$43,492 |
$49,399 |
$53,057 |
|
|
Married Filing Jointly |
|
|
|
|
|
|
Income at Max Credit |
$7,320 |
$10,980 |
$15,410 |
$15,410
|
|
|
Maximum Credit |
$560 |
$3,733 |
$6,164 |
$6,935
|
|
|
Phaseout Begins |
$15,920 |
$26,260 |
$26,260 |
$26,260
|
|
|
Phaseout Ends (Credit Equals Zero) |
$22,610 |
$49,622 |
$55,529 |
$59,187
|
The Tax Cuts and Jobs Act includes a 20 percent deduction in 2022 for pass-through businesses with $170,050 of qualified business income for single taxpayers and $340,100 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2022 Qualified Business Income Deduction Thresholds (Source:IRS)
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$164,900
|
|
Married Filing Jointly |
$329,800
|
Capital Gains, long term, are taxed using different rates and brackets compared to standard income.
The maximum Child Tax Credit for 2022 is $2,000 per child who qualifies, and is not adjusted for inflation. The portion refundable for the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,500 in 2022.
For 2022, the first $16,000 of gifts to any person is excluded from tax, up from $15,000 in 2021. This exclusion is increased to $164,000 from $159,000 for gifts to spouses who are not citizens of the United States.
Table 7. 2022 Capital Gains Tax Rates & Brackets (Source:IRS)
| Unmarried Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over | |
|---|---|---|---|
|
0% |
Up to $0 |
Up to $0 |
Up to $0
|
|
15% |
$41,675 |
$83,350 |
$55,800
|
|
20% |
$459,750 |
$517,200 |
$488,5000 |
