Are the 2023 tax brackets changing? Many, but not all, of the dollar figures in the tax code are adjusting for inflation. We have the numbers you need to know.
Hello, welcome to Arista Advice! "Paul, are the 2023 tax brackets changing?" It's an excellent question, and of course, they are is the sad and bad news. Many, but not all, of the dollar figures in the tax code are adjusting for inflation. The IRS has announced some key adjustments for 2023 to reflect higher inflation, including deductions, contributions, and tax brackets.
Here's just a few highlights - the standard deduction will be raised to $27,700 for married filing joint, and $13,850 for singles or widows. Each of these numbers has gone up 7% from 2022 to 2023.
As you'll see here, in 2023 on this graph, married filing joint is 12% tax rate is now $22,000.
For the 22% tax bracket, it's $89,450. For the 24% tax bracket, it's $190,750.
For the 32% tax bracket, it's $364,200. For the 35% tax bracket, it's $462,000, and for the 37% tax bracket, it's going from $647,000 to $693,000.
These are the federal tax brackets, and they do exclude the state income taxes that 42 of the 50 states have. Eight states have no state income tax. We recommend everybody try to get to one of those eight if they can, but if they can't they still have to pay, and everyone needs to pay the new federal tax figures that have been released by the IRS.
Hope this information is helpful. Please remember go to AristaWealth.com to get other videos, tools, tips, and resources to help you live a life of significance.