FEDERAL INCOME TAX BRACKETS FOR 2023
Single
Taxable Income Tax Rates
$0 - $11,000 10% of taxable income
$11,001 - $44,725 $1,100.00 plus 12% of the amount over $11,000
$44,726 - $95,375 $5,147 plus 22% of the amount over $44,726
$95,376 - $182,100 $16,290 plus 24% of the amount over $95,375
$182,101 - $231,250 $37,104 plus 32% of the amount over $182,100
$231,251 - $578,125 $52,832 plus 35% of the amount over $231,250
$578,251 or more $174,238.25 plus 37% of the amount over $578,250
Married Filing Jointly or Qualifying Widow(er)
Taxable Income Tax Rate
$0 - $22,000 10% of taxable income
$22,001 - $89,450 $2,200 plus 12% of the amount over $22,000
$89,451 - $190,750 $10,294 plus 22% of the amount over $89,450
$190,751 - $364,200 $32,580 plus 24% of the amount over $190,750
$364,201 - $462,500 $74,208 plus 32% of the amount over $364,200
$462,501 - $693,750 $105,664 plus 35% of the amount over $462,500
$693,751 or more $186,601.50 plus 37% of the amount over $693,750
Married Filing Separately
Taxable Income Tax Rate
$0 - $11,000 10% of taxable income
$11,001 - $44,725 $1,100 plus 12% of the amount over $11,000
$44,726 - $95,375 $5,145 plus 22% of the amount over $44,725
$95,376 - $182,100 $16,290 plus 24% of the amount over $95,375
$182,100 - $231,250 $37,104 plus 32% of the amount over $182,100
$231,250 - $346,875 $52,832 plus 35% of the amount over $231,250
$346,876 or more $93,300.75 plus 37% of the amount over $346,875
Head of Household
Taxable Income Tax Rate
$0 - $15,750 10% of taxable income
$15,701 - $59,850 $1,570 plus 12% of the amount over $15,700
$59,851 - $95,350 $6,868 plus 22% of the amount over $59,850
$95,351 - $182,100 $13,708 plus 24% of the amount over $95,350
$182,101 - $231,250 $35,498 plus 32% of the amount over $182,100
$231,251 - $578,100 $51,226 plus 35% of the amount over $231,250
$578,101 or more $172,623 plus 37% of the amount over $578,100
I have been asked many times for advice on how to keep from jumping up to the next tax bracket. The understanding behind this is usually the misconception of how our progressive tax system works. What many people don't realize is that our federal income tax brackets reflect marginal rates, not a rate that is applied to your entire income. Here is a quick example based on current tax rates :
For a married couple filing jointly in 2023, the 10% bracket covers income from $0 to $22,000, from $22,001 to $89,450 the tax rate is 12%, and from $89,451 to $190,750 the tax rate is 22%.
EXAMPLE:
A married couple filing jointly with taxable income of $100,000 will be in the 22% tax bracket, but they won't pay 22% in federal income taxes on the full amount. They would pay 10% on the first $22,000 ($2,200), 12% on the next $67,450 ($8,094), and 22% on the last $10,550 ($2,321). This works out to $ 12,615.00 , an effective rate of 12.615%.
What is taxable income?
Taxable income is total income minus any adjustments equals Adjusted gross income, minus your standard deduction or itemized deduction - whichever is greater minus qualified business deduction equals your Federal taxable income.
For a married couple filing jointly in 2023, the 10% bracket covers income from $0 to $22,000, from $22,001 to $89,450 the tax rate is 12%, and from $89,451 to $190,750 the tax rate is 22%.
EXAMPLE:
A married couple filing jointly with taxable income of $100,000 will be in the 22% tax bracket, but they won't pay 22% in federal income taxes on the full amount. They would pay 10% on the first $22,000 ($2,200), 12% on the next $67,450 ($8,094), and 22% on the last $10,550 ($2,321). This works out to $ 12,615.00 , an effective rate of 12.615%.
What is taxable income?
Taxable income is total income minus any adjustments equals Adjusted gross income, minus your standard deduction or itemized deduction - whichever is greater minus qualified business deduction equals your Federal taxable income.
