This article has been updated for the 2022 and 2023 tax years. The IRS has released its 2023 tax brackets (a bracketed rate table for the IRS federal income tax rates) and updated standard deduction amounts, and there are a number of inflation adjustment increases over the 2022 tax brackets and standard deductions for taxpayers.
Since we’re still focused on 2022 for tax filing purposes, the 2022 tax brackets are also going to be of interest to readers when working on your upcoming tax return, so I have included those as well. And when armed with the below information for 2023, it would be an excellent time to calculate what your modified adjusted gross income will likely be next year and modify your tax withholding on your W4 form. This will help prevent being penalized for underpayment of taxes or getting a refund (which is really a form of self-penalization by letting the government borrow your money, interest-free, particularly when interest rates have gone back up).
With the “Tax Cut & Jobs Act” (the tax reform implemented in 2018), the 2022 and 2023 tax brackets, tax rates, and standard deduction amounts have all been heavily revised from pre-reform levels. Barring new legislative changes, these altered tax brackets will continue through the 2025 tax year and then revert back.
2022 Tax Brackets (IRS Federal Income Tax Rates Table)
In the tables below, it is important to note that the highlighted rates represent the income tax rate owed for the portion of your taxable income that falls into that bracket (after subtracting the greater of your itemized or standard deductions). As an example, if you are single (unmarried) and your taxable income is $50,000, your tax rate on your first $10,275 of taxable income is 10%, taxable income between $10,275 and $41,775 is taxed at 12%, and taxable income between $41,775 to $50,000 (your income) would be taxed at 22%.
Many taxpayers incorrectly assume that if your total income peaks in the 35% tax bracket, for example, then all of your income is taxed at that rate. This is not the case. The United States federal income tax system is a “progressive” tax system, which means that your effective (actual) overall tax rate is less than the tax rate for income that falls in the top bracket that you are in. In other words, income is taxed in steps, or brackets. With that in mind, here are the 2022 tax brackets:
| Tax Rates | Single Filer Tax Brackets | Married Filing Jointly Tax Brackets (& Surviving Spouses) | Married Filing Separately Tax Brackets | Head of Household Tax Brackets |
|---|---|---|---|---|
| 10% | $0-$10,275 | $0-$20,550 | $0-$10,275 | $0-$14,650 |
| 12% | $10,275-$41,775 | $20,550-$83,550 | $10,275-$41,775 | $14,650-$55,900 |
| 22% | $41,775-$89,075 | $83,550-$178,150 | $41,775-$89,075 | $55,900-$89,050 |
| 24% | $89,075-$170,050 | $178,150-$340,100 | $89,075-$170,050 | $89,050-$170,050 |
| 32% | $170,050-$215,950 | $340,100-$431,900 | $170,050-$215,950 | $170,050-$215,950 |
| 35% | $215,950-$539,900 | $431,900-$647,850 | $215,950-$323,925 | $215,950-$539,900 |
| 37% | $539,900+ | $647,850+ | $323,925+ | $539,900+ |
2022 Standard Deductions & Dependent Exemptions
Standard deductions can lower your taxable income by allowing you to deduct from your taxable income, if you decide not to itemize taxes. Aside from the standard deductions, there are income tax exemptions that can be claimed, whether you itemize your taxes or take the standard deduction.
You can claim an exemption for each dependent, but note that with tax reform the personal exemption had been completely eliminated, as of 2018. Also, note that a spouse cannot be claimed as a dependent.
Here are the 2022 standard deduction and exemption amounts:
| Filing Status: | Standard Deduction Amount: |
|---|---|
| Single | $12,950 |
| Married Filing Separately | $12,950 |
| Married Filing Jointly (& Surviving Spouses) | $25,900 |
| Head of Household | $19,400 |
| Personal Exemption | $0 |
2023 Tax Brackets (IRS Federal Income Tax Rates Table)
Here are the new 2023 federal tax brackets:
| Tax Rates | Single Filer Tax Brackets | Married Filing Jointly Tax Brackets (& Surviving Spouses) | Married Filing Separately Tax Brackets | Head of Household Tax Brackets |
|---|---|---|---|---|
| 10% | $0-$11,000 | $0-$22,000 | $0-$11,000 | $0-$15,700 |
| 12% | $11,000-$44,725 | $22,000-$89,450 | $11,000-$44,725 | $15,700-$59,850 |
| 22% | $44,725-$95,375 | $89,450-$190,750 | $44,725-$95,375 | $59,850-$95,350 |
| 24% | $95,375-$182,100 | $190,750-$364,200 | $95,375-$182,100 | $95,350-$182,100 |
| 32% | $182,100-$231,250 | $364,200-$462,500 | $182,100-$231,250 | $182,100-$231,250 |
| 35% | $231,250-$578,125 | $462,500-$693,750 | $231,250-$346,875 | $231,250-$578,100 |
| 37% | $578,125+ | $693,750+ | $346,875+ | $578,100+ |
2023 Standard Deductions & Exemptions
And here are the 2023 standard deduction and exemption amounts:
| Filing Status: | Standard Deduction Amount: |
|---|---|
| Single | $13,850 |
| Married Filing Separately | $13,850 |
| Married Filing Jointly (& Surviving Spouses) | $27,700 |
| Head of Household | $20,800 |
| Personal Exemption | $0 |
For more information on standard deductions, itemizing taxes, various tax credits and deductions, and much more, check out the IRS website and my summarized “how to do your taxes” guide. My overview of the Earned Income Tax Credit may be of interest as well.
What About Capital Gains Tax Rates?
Capital gains tax rates on income from the selling of assets are broken down into short and long-term rates. Short-term capital gains tax rates are equivalent to the tax rates and brackets highlighted above, and apply to assets held for less than a year. Long-term capital gains tax rates for assets held for over a year receive beneficial tax rates and vary from the rates highlighted above. For more on short vs long-term capital gains tax rates, check out that link for more details.
Tax Rate Discussion
- Which tax bracket will you top out in for this year and what are you predicting for 2023?
- Will you be itemizing or taking the standard deduction?
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