Federal Income Tax Brackets and Rates
Tax Year 2023
Tax Year 2023
| Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
|---|---|---|---|
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $15,700 |
| 12% | $11,000 to $44,725 | $22,000 to $89,450 | $15,700 to $59,850 |
| 22% | $44,725 to $95,375 | $89,450 to $190,750 | $59,850 to $95,350 |
| 24% | $95,375 to $182,100 | $190,750 to $364,200 | $95,350 to $182,100 |
| 32% | $182,100 to $231,250 | $364,200 to $462,500 | $182,100 to $231,250 |
| 35% | $231,250 to $578,125 | $462,500 to $693,750 | $231,250 to $578,100 |
| 37% | $578,125 or more | $693,750 or more | $578,100 or more |
| Filing Status | Deduction Amount |
|---|---|
| Single | $13,850 |
| Married Filing Jointly | $27,700 |
| Head of Household | $20,800 |
| Filing Status | Exemption Amount |
|---|---|
| Unmarried Individuals | $81,300 |
| Married Filing Jointly | $126,500 |
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $578,150 |
| Married Filing Jointly | $1,156,300 |
| Filing Status | No Children | One Child | Two Children | Three or More Children | |
|---|---|---|---|---|---|
| Single or Head of Household | Income at Max Credit | $7,840 | $11,750 | $16,510 | $16,510 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 | |
| Phaseout Begins | $9,800 | $21,560 | $21,560 | $21,560 | |
| Phaseout Ends (Credit Equals Zero) | 17,640 | 46,560 | 52,918 | 56,838 | |
| Married Filing Jointly | Income at Max Credit | $7,840 | $11,750 | $16,510 | $16,510 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 | |
| Phaseout Begins | $16,370 | $28,120 | $28,120 | $28,120 | |
| Phaseout Ends (Credit Equals Zero) | 24,210 | 53,120 | 59,478 | 63,398 | |
Child Tax Credit
The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. The refundable portion of the Child Tax Credit is adjusted for inflation and will increase from $1,500 to $1,600 for 2023.
| For Unmarried Individuals, Taxable Income Over | For Married Individuals Filing Joint Returns, Taxable Income Over | For Heads of Households, Taxable Income Over | |
|---|---|---|---|
| 0% | $0 | $0 | $0 |
| 15% | $44,625 | $89,250 | $59,750 |
| 20% | $492,300 | $553,850 | $523,050 |
Qualified Business Income Deduction (Sec. 199A)
The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20 percent deduction for pass-through businesses. Limits on the deduction begin phasing in for taxpayers with income above $182,100 (or $364,200 for joint filers) in 2023 (Table 7).
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $182,500 |
| Married Filing Jointly | $364,200 |
Annual Exclusion for Gifts
In 2023, the first $17,000 of gifts to any person are excluded from tax, up from $16,000. The exclusion is increased to $175,000 from $164,000 for gifts to spouses who are not citizens of the United States.