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2023 Marginal Income Tax Rates and Brackets
| 2023 Marginal Tax Rate | Single Tax | Married Filing Jointly Tax Bracket | Head of Household Tax Bracket | Married Filing Separately Tax Bracket |
| 10% | $0–11,000 | $0–22,000 | $0–15,700 | $0–11,000 |
| 12% | $11,001-44,725 | $22,001-89,450 | $15,701-59,850 | $11,001-44,725 |
| 22% | $44,726-95,375 | $89,451-190,750 | $59,851-95,350 | $44,726-95,375 |
| 24% | $95,376-182,100 | $190,751-364,200 | $95,351-182,100 | $95,376-182,100 |
| 32% | $182,101-231,250 | $364,201-462,500 | $182,101-231,250 | $182,101-231,250 |
| 35% | $231,251-578,125 | $462,501-693,750 | $231,251-578,100 | $231,251-346,875 |
| 37% | Over $578,125 | Over $693,750 | Over $578,100 | Over $346,875 |
Tax Brackets
There are seven federal tax brackets for the 2023 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your bracket depends on your taxable income and filing status.
Increased Standard Deduction
The 2023 standard deduction is increased to $27,700 for married individuals filing a joint return; $20,800 for head-of-household filers; and $13,850 for all other taxpayers.
If you are age 65 or older, you may increase your standard deduction by $1,850 if you file Single or Head of Household. If you are Married Filing Jointly and you or your spouse is 65 or older, you may increase your standard deduction by $1,500. If both you and your spouse are 65 or older, you may increase your standard deduction by $3,000.
If you are legally blind, you may increase your standard deduction by $1,850 if filing Single or Head of Household. If you are Married Filing Jointly and you or your spouse is blind, you may increase your standard deduction by $1,500. You may increase your standard deduction by $3,000 if both you and your spouse are blind.
State, Local, and Property Taxes – Limited to $10K
Much has changed with the passing of the Tax Cuts and Jobs Act—changes that will benefit some taxpayers and negatively impact others. One change, in particular, has been the subject of much debate in Congress, the state and local income tax (SALT) deduction, which is now limited to $10,000. For tax years beginning after December 31, 2017 and before January 1, 2026, a taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return) for taxes paid at the State and local level, including real and personal property, income, and/or sales taxes. This new law now limits the deduction when it was previously unlimited (depending on your tax bracket).
Increased Child Tax Credit and Income Ranges
Under the 2018 tax reform the credit is worth up to $2,000 per qualifying child. The age cut-off remains at 17 (the child must be under 17 at the end of the year for taxpayers to claim the credit). The refundable portion of the credit is limited to $1,500. The beginning credit phaseout for the child tax credit increased in 2018 to $200,000 ($400,000 for joint filers). The phaseout also applies to the new $500 credit for other dependents.
New Other Dependent Credit
Dependents who can’t be claimed for the Child Tax Credit may still qualify you for the Credit for Other Dependents. This is non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien.
Eliminated Personal Exemptions
The tax bill eliminated the personal and dependency exemptions which were $4,050 in 2017.
Health Care and Medical Expenses
The tax bill eliminates the tax penalty for not having health insurance after December 31, 2018. The medical expense deduction is 7.5% of qualified unreimbursed medical law expenses for 2023.
Child and Dependent Care Credit
The child and dependent care tax credit is a percentage of your daycare expenses up to $3,000 for one dependent or $6,000 for two or more dependents. But these figures aren’t the amount of your credit. Your credit is the applicable percentage of these amounts.
Education Credits
The American Opportunity Tax Credit is restricted to undergraduates who are enrolled for at least one academic period for at least half-time a year. Graduate students don’t qualify. The credit is equal to the first $2,000 you spend per student plus 25% of the next $2,000 you spend, for a maximum credit of $2,500. Taxpayers may also qualify for a refundable credit up to $1,000
The Lifetime Learning Credit is open to all students, even graduate students and those who are enrolled less than half-time. This credit is equal to 20% of up to $10,000 in eligible education expenses, or $2,000 total. You can include your total education expenses.