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2023 Tax Brackets and Rates

The income limits for all 2023 tax brackets and all filers will be adjusted for inflation and will be as follows (Table 1). There are seven federal income tax rates in 2023: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income above $539,900 for single filers and above $693,750 for married couples filing jointly.

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2023 Federal Income Tax Brackets and Rates 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

Standard Deduction and Personal Exemption

The standard deduction will increase by $900 for single filers and by $1,800 for joint filers (Table 2).

The personal exemption for 2023 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA).

2023 Standard Deduction

Filing Status        Deduction Amount

Single    $13,850

Married Filing Jointly      $27,700

Head of Household          $20,800

Earned Income Tax Credit (EITC)

The maximum Earned Income Tax Credit (EITC) in 2023 for single and joint filers is $560 if the filer has no children (Table 5). The maximum credit is $3,995 for one child, $6,604 for two children, and $7,430 for three or more children.

2023 Earned Income Tax Credit (EITC) Parameters

Filing Status                        No Children        One Child             Two Children      Three or More Children

Single or Head of Household       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

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

Child Tax Credit

The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. The refundable portion of the Child Tax Credit is adjusted for inflation and will increase from $1,500 to $1600

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