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What's New for the 2023 Tax Year?

Income Tax Brackets and Rates

In 2023, the income limits for all tax brackets and all filers will be adjusted for inflation
and will be as follows (Tables 1). The top marginal income tax rate of 37 percent
will hit taxpayers with taxable income of $578,125 and higher for single filers
and $693,750 and higher for married couples filing jointly.

 2023

Table 1. Tax Brackets and Rates

Rate

For Unmarried Individuals, Taxable Income Over

For Married Individuals Filing Joint Returns, Taxable Income Over

For Heads of Households, Taxable Income Over

10%

$0

$0

$0

12%

$11,601

$23,201

$16,551

22%

$47,151

$94,301

$63,101

24%

$100,526

$201,051

$100,501

32%

$191,951

$383,901

$191,951

35%

$243,726

$487,451

$243,701

37%

$609,351

$731,201

$609,351

Table 2. 2023 Standard Deduction and Personal Exemption

Filing Status

Deduction Amount

Single

$14,600

Married Filing Jointly

$29,200

Head of Household

$21,900 

 

Table 3. 2023 Earned Income Tax Credit Parameters

Filing Status

 

No Children

One Child

Two Children

Three or
More Children

Single

Or

Head of Household

          

Maximum Credit

$632

$4,213

$6,960

$7,830

Phase-out Ends
(Credit Equals Zero)

$18,591

$49,084

$55,768

$59,899

Married Filing Jointly

          

Maximum Credit

$632

$4,213

$6,960

$7,830

Phase-out Ends
(Credit Equals Zero)

$25,511

$56,004

$62,688

$66,819


If your gross income was $5,050 or more, you usually can’t be claimed as a dependent unless you are a qualifying child.

Retirement Contributions

TYPE

2024

Traditional IRA or Roth IRA

$7,000 per individual

– over 50 “catch up”

An additional $1,000

401K Limits

$23,000

401K Limits over 50

$30,500

 

Capital Gains

Capital gains rates are lower than a taxpayer’s ordinary income rate.
But they depend on the taxpayer’s taxable income and filing status. 
The maximum adjusted capital gains rates apply for both the regular
income tax and the alternative minimum tax.

Your capital gains rate for the 2023 tax year:

Tax-filing status

0% tax rate

15% tax rate

20% tax rate

Single

$0 to $47,025.

$47,026 to $518,900.

$58,900 or more.

Married, filing jointly

$0 to $94,050.

$94,051 to $583,750.

$583,750 or more.

Married, filing separately

$0 to $47,025.

$47,026 to $291,580.

$291,850 or more.

Head of household

$0 to $63,000.

$63,001 to $551,350.

$51,350 or more.

Short-term capital gains are taxed as ordinary income according to federal income tax brackets.

 

The applicable capital gains rate is set at 20% for any income amounts above these ceilings.