Tax Brackets 2022-2023: How Much Tax You Owe (2024)

Tax Brackets 2022-2023: How Much Tax You Owe (1)

By

Nick Zaryzcki

-

Reviewed by

Pat Taylor, EA, MBA

on

December 11, 2023

This article is Tax Professional approved

Tax brackets are how the IRS determines which income levels get taxed at which federal income tax rates. The higher the income you report on your tax return, the higher your tax rate.

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Here we’ll go over the new IRS federal tax brackets for the 2023 and 2024 tax years, how to figure out which ones you fall into, and give you a heads up about any other inflation-related changes to your taxes in 2023.

What are the 2023 federal income tax brackets?

Which tax bracket you fall into in the United States also depends on your filing status. Here are the 2023 tax brackets according to the IRS. These will be used for your 2023 tax year tax filing.

It’s broken into the four most common filing statuses: individual single filers, married individuals filing jointly, heads of households, and married individuals filing separately:

Tax rateIndividual single filersMarried filing jointly or qualifying widow(er)Married filing separatelyHead of household
10%$0 - $10,275$0 - $20,550$0 - $10,275$0 - $14,650
12%$10,276 - $41,775$20,551 - $83,550$10,276 - $41,775$14,651 - $55,900
22%$41,776 - $89,075$83,551 - $178,150$41,776 - $89,075$55,901 - $89,050
24%$89,076 - $170,050$178,1511 - $340,100$89,076 - $170,050$89,051 - $170,050
32%$170,051 - $215,950$340,101 - $431,900$170,051 - $215,950$170,051 - $215,950
35%$215,951 - $539,900$431,901 - $647,850$215,951 - $323,925$215,951 - $539,900
37%$539,901+$647,851+$323,926+$539,901+

What are the 2024 federal income tax brackets?

Below are the 2024 tax brackets according to the IRS. These will be used for your 2024 tax year filing:

Tax rateIndividual single filersMarried filing jointly or qualifying widow(er)Married filing separatelyHead of household
10%$0 - $11,000$0 - $22,000$0 - $11,000$0 - $15,700
12%$11,001 - $44,725$22,001 - $89,450$11,001 - $44,725$15,701 - $59,850
22%$44,726 - $95,375$89,451 - $190,750$44,726 - $95,375$59,851 - $95,350
24%$95,376 - $182,100$190,751 - $364,200$95,376 - $182,100$95,351 - $182,100
32%$182,101 - $231,250$364,201 - $462,500$182,101 - $231,250$182,101 - $231,250
35%$231,251 - $578,125$462,501 - $693,750$231,251 - $346,875$231,251 - $578,100
37%$578,126+$693,751+$346,876+$578,101+

How do tax brackets work?

Tax brackets are based on your taxable income, which is what you get when you take all of the money you’ve earned and subtract all of the tax deductions you’re eligible for. (Check out Bench’s Big List of Small Business Tax Deductions for more info.)

Once you’ve calculated your taxable income, it’s time to look at the IRS’s tax rate schedule—a fancy term for ‘big list of tax system brackets’—for the year you’re doing your taxes for.

(Keep in mind, these brackets are for income tax only; capital gains tax uses its own set of brackets.)

Let’s take the IRS tax brackets for individual single filers in 2023:

Tax rateTotal taxable income
10%$0 - $10,275
12%$10,276 - $41,775
22%$41,776 - $89,075
24%$89,076 - $170,050
32%$170,051 - $215,950
35%$215,951 - $539,900
37%$539,901+

Unless you made $10,275 or less in taxable income in 2023, it’s likely you fall into at least two brackets. This means different parts of your income is taxed at a different rate.

For example, let’s say that your taxable income ends up being $20,000. That means you’ll fall into two different tax brackets and get taxed at two different rates:

  • the $0 - $10,275 bracket, which taxes you at 10%
  • the $19,276 - $41,775 bracket, which taxes you at 12%

So you’ll pay two different tax rates: 10% on the first $10,275 ‘chunk’ of your income, and 12% on every dollar you made above $10,275.

In equation form, we’d write this out as:

Total tax = (10% x $10,275) + (12% x [$20,000-$10,275])

Total tax = $1027.50 + $1,167.00

Total tax bill = $2,194.50

We call the highest tax rate that you pay your marginal tax rate. In this example, your marginal tax rate is 12%.

How do I calculate my taxes using these tax brackets?

The math involved in calculating how much you owe from each ‘chunk’ of income can get complicated. To make things easier, here are four cheat sheets for determining the amount of tax you need to pay, organized by filing status:

Individual single filers

Remember: if on the last day of 2023 you were unmarried or legally separated from your spouse—and you don’t qualify for another filing status—you file your taxes in 2024 as an individual single taxpayer.

Here’s how much you are taxed:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $10,27510% of your taxable income
$10,276 - $41,775$1,027.50 plus 12% of any income you made above $10,275
$41,776 - $89,075$4,807.50 plus 22% of any income you made above $41,775
$89,076 - $170,050$15,213.50 plus 24% of any income you made above $89,075
$170,051 - $215,950$34,647.50 plus 32% of any income you made above $170,050
$215,951 - $539,900$49,335.50 plus 35% of any income you made above $215,950
$539,901+$162,718.00 plus 37% of any income you made above $539,900

Married filing jointly or qualifying widow(er)

If you’re married and both you and your spouse agree to file a joint return, or you’re a qualifying widow(er), use the following to figure out your taxes for 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $20,55010% of your taxable income
$20,551 - $83,550$2,055.00 plus 12% of any income you made above $20,550
$83,551 - $178,150$9,615.00 plus 22% of any income you made above $83,550
$178,151 - $340,100$30,427.00 plus 24% of any income you made above $178,150
$340,101 - $431,900$69,295.00 plus 32% of any income you made above $340,100
$431,901 - $647,850$98,671.00 plus 35% of any income you made above $431,900
$647,851+$174,253.50 plus 37% of any income you made above $647,850

Married filing separately

If you’re married and you decide that filing individually could lower your tax burden, or you and your spouse don’t agree to file a joint return, you’ll use this filing status.

Here’s how much married individuals filing separately are taxed on income in 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $10,27510% of your taxable income
$10,276 - $41,775$1,027.50 plus 12% of any income you made above $10,275
$41,776 - $89,075$4,807.50 plus 22% of any income you made above $41,775
$89,076 - $170,050$15,213.50 plus 24% of any income you made above $89,075
$170,051 - $215,950$34,647.50 plus 32% of any income you made above $170,050
$215,951 - $323,925$49,335.50 plus 35% of any income you made above $215,950
$323,926+$162,718.00 plus 37% of any income you made above $539,900

Head of household

If you:

  • Are unmarried
  • Paid more than half the cost of keeping up a home for the year
  • Live with a qualifying person for more than half the year

Then you might qualify for the “head of household” filing status. If so, use the following to figure out your taxes on income in 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $14,65010% of your taxable income
$14,651 - $55,900$1,465 plus 12% of any income you made above $14,650
$55,901 - $89,050$6,415.00 plus 22% of any income you made above $55,900
$89,051 - $170,050$13,708.00 plus 24% of any income you made above $89,050
$170,051 - $215,950$33,148.00 plus 32% of any income you made above $170,050
$215,951 - $539,900$47,836.00 plus 35% of any income you made above $215,950
$539,901+$161,218.50 plus 37% of any income you made above $539,900

Why do tax brackets change every year?

If you compare this year’s tax brackets to the ones from previous years, you might notice they’ve all been slightly adjusted. Why is that?

It all has to do with inflation. Every year the IRS tweaks the tax brackets to prevent “bracket creep,” which is what happens when inflation pushes you into a higher tax bracket.

If you haven’t looked up your bracket since 2017, there’s a major tax reform you should look out for. The Tax Cuts and Jobs Act passed in December of 2017 changed the way the IRS calculates inflation, which will mean smaller annual inflation adjustments down the road.

That increases your chances of getting bumped up into a higher tax bracket every year. If you just barely avoided entering a higher tax bracket this year and think you might be a borderline case next year, make sure to follow the IRS’s inflation adjustment announcements closely.

What are some other inflation adjustments I should look out for?

We mentioned earlier that the IRS’s tax brackets apply to your taxable income, which is what you get when you apply certain adjustments and deductions to your revenue.

One other way that the IRS helps guard against bracket creep is by adjusting the values of deductions to keep up with inflation. Here are the main ones you should look out for:

The standard deduction

Your standard deduction—the portion of your income that is protected from taxes—gets adjusted every year to keep up with inflation. The standard deduction amounts for the 2023 tax year (and their increases from the 2022 tax year) are:

  • $13,850 for single filers (up $900)
  • $13,850 for married taxpayers who file their taxes separately (up $900)
  • $20,800 for heads of households (up $1,400)
  • $27,700 for married taxpayers who file jointly (up $1,800)
  • $27,700 for qualifying widows or widowers (up $1,800)

Adjustments to income

Adjustments are a special kind of deduction that lets you reduce your taxable income even before you start applying the standard deduction or itemizing. You can find a summary of all the updated adjustment figures on the IRS website here.

Tax credits

Unlike deductions, which reduce your taxable income, tax credits directly reduce your tax amount owed. Tax credits that the IRS adjusted for inflation this year include:

The earned income credit increased to a range of $600 to $7,430 in 2023 depending on your filing status and the number of children you have. This is up slightly from $560 to $6,935 from last year.

The adjusted gross income (AGI) at which you start to lose the lifetime learning credit is $90,000 in 2023 for single filers. But for married couples filing jointly, the credit starts to phase out when your 2023 AGI reaches $180,000.

The maximum amount of qualified adoption expenses you can use to determine your adoption credit increased to $14,890 per child.

Further Reading:

  • How to Check Your Tax Refund Status in 5 Minutes
  • Adjusted Gross Income: A Simple Guide to AGI
  • What is the IRS Fresh Start Program?

Essential reading for tax season

  • What Happens at the IRS After You File Your Taxes?
  • What Tax Deductions Can You Claim Without Receipts?
  • What Is a 1099 Form, and How Do I Fill It Out?
  • Form 1096: A Simple Guide
  • 1099-NEC vs 1099-MISC: Differences, Deadlines, and How-To's
  • How to Deduct Meals and Entertainment in 2024
  • 17 Big Tax Deductions (Write Offs) for Businesses

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

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Tax Brackets 2022-2023: How Much Tax You Owe (2)

As a tax professional with extensive expertise in federal income tax regulations, I will provide a comprehensive overview of the concepts covered in the article by Nick Zaryzcki, reviewed by Pat Taylor, EA, MBA, on December 11, 2023. The article discusses tax brackets, their application for the tax years 2023 and 2024, and provides insights into how tax brackets work, along with calculations and adjustments related to inflation.

The article starts by introducing the concept of tax brackets and their role in determining the federal income tax rates imposed on different income levels. It emphasizes that higher reported income leads to higher tax rates. The tax brackets for both 2023 and 2024 are then presented for individual single filers, married individuals filing jointly, heads of households, and married individuals filing separately.

The 2023 federal income tax brackets are as follows:

  • 10%: $0 - $10,275 for individual single filers
  • 12%: $10,276 - $41,775
  • 22%: $41,776 - $89,075
  • 24%: $89,076 - $170,050
  • 32%: $170,051 - $215,950
  • 35%: $215,951 - $539,900
  • 37%: $539,901 and above

The 2024 federal income tax brackets are also provided, showing slight adjustments for inflation.

The article then explains how tax brackets function, being based on taxable income derived by subtracting eligible tax deductions from earned income. The IRS's tax rate schedule is referenced as the "big list of tax system brackets" for the relevant tax year.

It is clarified that individuals may fall into multiple tax brackets, and an example scenario is presented to illustrate the calculation of taxes using these brackets. The highest tax rate that an individual pays is referred to as the marginal tax rate.

The article proceeds to offer cheat sheets for calculating taxes based on filing status (individual single filers, married filing jointly, married filing separately, and head of household). Each cheat sheet provides the applicable tax rates for different income ranges.

A key aspect explained is why tax brackets change every year, attributing it to inflation. The IRS adjusts tax brackets annually to counter "bracket creep," wherein inflation pushes taxpayers into higher tax brackets. A mention is made of the Tax Cuts and Jobs Act of 2017, which altered the calculation of inflation, potentially leading to smaller annual adjustments.

In addition to tax brackets, the article highlights other inflation-related adjustments to be aware of, such as changes to the standard deduction and adjustments to income. It provides figures for the standard deduction amounts for different filing statuses and mentions adjustments to income as a way to reduce taxable income before applying deductions.

The article concludes by mentioning tax credits that are adjusted for inflation, including the earned income credit, lifetime learning credit, and adoption credit. Further reading suggestions are provided for topics like checking tax refund status, adjusted gross income, the IRS Fresh Start Program, and tax deductions.

In summary, the article covers tax brackets, their application, calculations, inflation-related adjustments, and provides additional resources for readers seeking more information on various tax-related topics.

Tax Brackets 2022-2023: How Much Tax You Owe (2024)

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