Yesterday, the IRS released inflation-adjusted marginal rates and income tax brackets for 2023. As a result, many workers will see higher take-home pay in the new year as less tax is withheld from their paychecks.
View the new marginal rates for tax year 2023, depending on your tax status:
Marginal Tax Brackets for Tax Year 2023, Single Individuals
| Taxable Income | Taxes Owed |
| $11,000 or less | 10% of the taxable income |
| $11,001 to $44,725 | $1,100 plus 12% of amount over $11,000 |
| $44,726 to $95,375 | $5,147 plus 22% of amount over $44,725 |
| $95,376 to $182,100 | $16,290 plus 24% of amount over $95,375 |
| $182,101 to $231,250 | $37,104 plus 32% of amount over $182,100 |
| $231,251 to $578,125 | $52,832 plus 35% of amount over $231,250 |
| $578,126 or more | $174,238.25 plus 37% of amount over $578,125 |
Marginal Tax Brackets for Tax Year 2023, Married Filing Jointly
| Taxable Income | Taxes Owed |
| $22,000 or less | 10% of the taxable income |
| $22,001 to $89,450 | $2,200 plus 12% of amount over $22,000 |
| $89,451 to $190,750 | $10,294 plus 22% of amount over $89,450 |
| $190,751 to $364,200 | $32,580 plus 24% of amount over $190,750 |
| $364,201 to $462,500 | $74,208 plus 32% of amount over $364,200 |
| $462,501 to $693,750 | $105,664 plus 35% of amount over $462,500 |
| $693,751 or more | $186,601.50 plus 37% of amount over $693,750 |
Additionally, the IRS released adjustments to the standard deduction for next year.
The standard deduction for married couples filing jointly for tax year 2023 will rise to $27,700, up $1,800 from tax year 2022. The standard deduction is the amount taxpayers can subtract from their income, before they owe taxes on the rest. Though, you cannot take the standard deduction if you itemize your deductions.
For single taxpayers and married people filing separately, the standard deduction will rise to $13,850, up $900. And for heads of households, it will rise to $20,800, up $1,400. People age 65 and over can claim an additional standard deduction of $1,500 for 2023, or $1,850 if they are unmarried and not a surviving spouse.
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