Tax Brackets
Tax & AccountingJanuary 04, 2023

2022-20223 income tax brackets, standard deduction amounts, and gift tax exemption

Every year the IRS releases inflation adjustments for more than 60 tax provisions, including income tax, standard deduction, and gift tax exemption amounts. This adjustment is intended to offset salaries, which are often adjusted for inflation. In 2022, the IRS released the tax year 2023 annual inflation adjustments in Revenue Procedure 2022-38.

Beginning with tax year 2018, most inflation adjustments replaced the Consumer Price Index with the Chained Consumer Price Index, as the Tax Cuts and Jobs Act required. The change in the calculation is highly technical, but the end result is much smaller increases in inflation adjustments. Despite that, historically high inflation at the end of 2021 and throughout 2022 has led to increases in tax-related amounts far larger than seen in decades.

In addition to changing how inflation adjustments are calculated, the Tax Cuts and Jobs Act also produced a number of new items to adjust annually, including eliminating the personal exemption deduction. Despite this, the personal exemption is calculated every year, as it is still used in a number of instances, such as the qualifying relative test for head of household filing status, and a qualified disability trust’s deduction in lieu of a personal exemption.

Once again for 2023 there are seven tax brackets for most ordinary income: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. More can be found in the table below.

Married filing jointly (& surviving spouse) 

 

2023 Taxable Income Tax Rate 2022 Taxable Income Tax Rate
Not over $22,000 10% Not over $20,550
10%
$22,001 - $89,450  12% $20,551 - $83,550 12%
$89,451 - $190,750
22%
$83,551 - $178,150 22% 
$190,751 - $364,200 24% 
$178,151 - $340,100 24% 
$362,201 - $462,500 32% 
$340,101 - $431,900 32%
$462,501 - $693,750 37%
$431,901 - $647,850 35%
Over $693,750 37%  Over $647,850 37%

 

 

Married filing separately 

 

2023 Taxable Income Tax Rate 2022 Taxable Income Tax Rate
Not over $11,000 10% Not over $10,275
10%
$11,001 - $44,725 12% $10,276 - $41,775 12%
$44,726 - $95,375
22%
$41,776 - $89,075 22%
$95,376 - $182,100 24% $89,076 - $170,050 24%
$182,101 - $231,250 32%
$170,051 - $215.950 32%
$231,251 - $463,875 37%
$215,951 - $323,925 35%
Over $463,875 37% Over $323,925 37%

 

 

Single filers

 

2023 Taxable Income Tax Rate 202 Taxable Income Tax Rate
Not over $11,000 10% Not over $10,275
10%
$11,001 - $44,725 12% $10,276 - $41,775 12%
$44,726 - $95,375
22%
$41,776 - $89,075 22%
$95,376 - $182,100 24%
$89,076 - $170,050 24%
$182,101 - $231,250 32%
$170,051 - $215,950 32%
$231,251 - $578,125 35%
$215,951 - $539,900 35%
Over $578,125 37% Over $539,900 37%

 


Head of household

 

2023 Taxable Income Tax Rate 2022 Taxable Income Tax Rate
Not over $15,000 10% Not over $14,650 10%
$15,701 - $59,850 12% $14,651 - $55,900 12%
$59,851 - $95,350
22%
$55,901 - $89,050 22%
$95,351 - $182,100 24%
$89,051 - $170,050 24%
$182,101 - $231,250 32%
$170,051 - $215,950 32%
$231,251 - $578,100 35% $215,951 - $539,900 35%
Over $578,100 37% Over $539,900 37%

 

 

Standard deduction amount

 

Filing Status 2023 2022 Increase
Married Filing Jointly (& Surviving Spouse) $27,700 $25,900 $1,800
Married Filing Separately $13,850 $12,950 $900
Single
$13,850
$12,950 $900
Head of Household $20,800 $19,400 $1,400

 

 

Standard deduction for dependents ("kiddie" standard deduction)

 

2023 2022 Increase
$1,250 $1,150
$100

 

 

Annual gift tax exemption

 

2023 2022 INCREASE
$17,000 $16,000
$1,000

 

Source: Wolters Kluwer CCH® AnswerConnect, 2022
Permission for use granted.

Mark Luscombe
Principal Federal Tax Analyst
Mark Luscombe, a CPA and attorney, is the principal federal tax analyst for Wolters Kluwer Tax & Accounting. He is the current chair of the Important Developments Subcommittee of the Partnership Committee of the American Bar Association Tax Section and speaks on a wide range of tax topics. He authors monthly columns in Accounting Today and TAXES magazine. Prior to joining Wolters Kluwer, he was in private practice with several Chicago-area law firms where he specialized in taxation.
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