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What are the IRS Federal Tax Brackets?
Are you curious about how much you will owe in taxes this year? Wonder no more! The IRS has released the newest Federal Tax Brackets, and we have them all listed here for you.
It’s important to understand how the IRS tax brackets work and to see what current rate you are taxed at to accurately calculate your tax refund or liability for the tax year. In addition, it is interesting to see how the tax brackets have changed over time.
Keep in mind that these brackets are just for reference – your actual tax bill may be different depending on your income, deductions, and other factors. But this should give you a good idea of where you stand. So how much will you pay? Check out our breakdown below!
2023 Federal Tax Brackets Chart
Here are the 2023 tax rates and brackets organized by filing status:
Single
| Tax Rate |
Taxable Income | Taxes You Pay |
| 10% | $0 to $9,950 | 10% of taxable income |
| 12% | $9,951 to $40,525 | $995 plus 12% of the amount over $9,950 |
| 22% | $40,526 to $86,375 | $4,664 plus 22% of the amount over $40,525 |
| 24% | $86,376 to $164,925 | $14,751 plus 24% of the amount over $86,375 |
| 32% | $164,926 to $209,425 | $33,603 plus 32% of the amount over $164,925 |
| 35% | $209,426 to $523,600 | $47,843 plus 35% of the amount over $209,425 |
| 37% | $523,601 or more | $157,804.25 plus 37% of the amount over $523,600 |
Married Filing Jointly or Qualifying Widow(er)
| Tax Rate | Taxable Income | Taxes You Pay |
| 10% | $0 to $19,900 | 10% of taxable income |
| 12% | $19,901 to $81,050 | $1,990 plus 12% of the amount over $19,900 |
| 22% | $81,051 to $172,750 | $9,328 plus 22% of the amount over $81,050 |
| 24% | $172,751 to $329,850 | $29,502 plus 24% of the amount over $172,750 |
| 32% | $329,851 to $418,850 | $67,206 plus 32% of the amount over $329,850 |
| 35% | $418,851 to $628,300 | $95,686 plus 35% of the amount over $418,850 |
| 37% | $628,301 or more | $168,993.50 plus 37% of the amount over $628,300 |
Married Filing Separately
| Tax Rate | Taxable Income | Taxes You Pay |
| 10% | $0 to $9,950 | 10% of taxable income |
| 12% | $9,951 to $40,525 | $995 plus 12% of the amount over $9,950 |
| 22% | $40,526 to $86,375 | $4,664 plus 22% of the amount over $40,525 |
| 24% | $86,376 to $164,925 | $14,751 plus 24% of the amount over $86,375 |
| 32% | $164,926 to $209,425 | $33,603 plus 32% of the amount over $164,925 |
| 35% | $209,426 to $314,150 | $47,843 plus 35% of the amount over $209,425 |
| 37% | $314,151 or more | $84,496.75 plus 37% of the amount over $314,150 |
Head of Household
| Tax Rate | Taxable Income | Tax Rate |
| 10% | $0 to $14,200 | 10% of taxable income |
| 12% | $14,201 to $54,200 | $1,420 plus 12% of the amount over $14,200 |
| 22% | $54,201 to $86,350 | $6,220 plus 22% of the amount over $54,200 |
| 24% | $86,351 to $164,900 | $13,293 plus 24% of the amount over $86,350 |
| 32% | $164,901 to $209,400 | $32,145 plus 32% of the amount over $164,900 |
| 35% | $209,401 to $523,600 | $46,385 plus 35% of the amount over $209,400 |
| 37% | $523,601 or more | $156,355 plus 37% of the amount over $523,600 |
Standard Deduction Amounts
| Filing Status | Standard Deduction | |
| Single | $12,550 | |
| Married Filing Jointly or Qualifying Widow(er) | $25,100 | |
| Married Filing Separately | $12,550 | |
| Head of Household | $18,800 | |
Source: https://www.irs.gov/
Are tax tables changing for 2022?
No, the federal tax tables for 2022 will be the same as they were in 2021 because the Internal Revenue Service has not adjusted them. There are still a total of seven: 10%, 12%, 22%, 24%, 32%, and 35%, in addition to the highest bracket of 37%.
However, the income thresholds for each of the tax brackets were raised in 2022 so that they more accurately reflected the level of inflation.
How to Calculate Your Tax Rate Using the Tax Bracket Calculator
Your tax bracket is incredibly important because it’s the pivotal piece of information that defines your taxes. Therefore, you must know which tax bracket you fall into so you know which percentage you’ll be paying from your income and which segments of your income fall into which bracket.
The United States Internal Revenue Service uses a tax bracket system. The tax rate increases as the level of taxable income increases. The 2022 tax rate ranges from 10% to 37%. Use this tax bracket calculator to discover which bracket you fall in.
Being in a “higher tax bracket” doesn’t mean all your income is taxed at that rate. The tax bracket rate is a marginal tax – each level of income is taxed at its own bracket rate such as tax brackets for married filing jointly – as opposed to the total income being taxed at the highest tax rate, which is a common misconception. So although your income may fall in a higher tax bracket, your effective tax rate is much lower.
What is Taxable Income?
Taxable income is the amount of income you report to the IRS after taking all tax deductions, exemptions, and standard deductions on the tax return. The gross income minus all deductions and exemptions are the amounts used to calculate how much tax liability you owe for the tax year.
Knowing how much income and deductions you can claim during the year can help estimate your tax refund or liability. In addition, specific tax planning strategies such as investments in IRA or 401(k) can be used to minimize the tax burden.
The current IRS Federal income tax brackets above should be used to figure out your taxable income. In general, the more income you have, the higher your tax liability.
Save Time and Aggravation by filing your taxes online!
If you’re thinking about filing your taxes online, we can help! We have a step-by-step guide that will walk you through the process. And if you have any questions, our tax experts are always here to help. So what are you waiting for? Get started today!
