Key Highlights of the 2023 Tax Brackets and Standard Deduction Adjustments

2023 Tax Brackets Update

The tax brackets for Americans will shift upward for tax year 2023, following a series of rule adjustments to account for inflation. The Internal Revenue Service announced rule adjustments in 2022 for more than 60 tax provisions for tax year 2023, including changes to the standard tax deduction and the designation of tax brackets.

Inflation Impact

Inflation, which reached a nearly 40-year high of 8.2 percent at the time of the announcement, fueled the particularly drastic changes for this tax season.

New Tax Brackets

• The 12 percent tax bracket: $11,000 to $44,725
• The 10 percent tax bracket: $0 to $11,000
• The 22 percent tax bracket: $44,726 to $95,375
  This is a significant shift in rates
• The 24 percent tax bracket: $95,375 to $182,100
• The 32 percent tax bracket: $182,101 to $231,150
• The 35 percent tax bracket: $231,251 to $578,125
• The 37 percent tax bracket: $578,126 and more