--- title: '2023 Tax Brackets: You Might Owe the IRS Less Next Year Thanks to Inflation' description: The IRS announced that higher tax bracket thresholds are coming for 2023 to adjust for the past year's inflation. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 602 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: A graduate of the University of Florida, Julia has more than eight years of experience in personal finance journalism. In addition to overseeing news and newsletters, she leads Money’s tax coverage, which includes extensive reporting on tax credits, policy changes and the IRS. education: University of Florida at_money_since: 2018 articles: 453 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2022-10-19T18:02:55.000Z' modified: '2022-10-19T18:02:55.000Z' section: Taxes tags: - News - Taxes word_count: 456 canonical: https://money.com/tax-brackets-2023-inflation/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Close up of a Tax return form with calculator](https://img.money.com/2022/10/News-Federal-Income-Tex-Brackets-2023.jpg) The IRS is significantly increasing the thresholds for income tax brackets in 2023 to adjust for the record-breaking inflation the U.S. has experienced lately. And that means if your wages haven't kept up with skyrocketing [prices](https://money.com/inflation-food-rent-price-increase/), you may be taxed at a lower rate. The changes, unveiled Tuesday, apply to 2023 earnings, so they affect the tax returns most Americans will file in the spring of 2024. You'll start to see the reduced tax withholding from your [paychecks](https://money.com/paycheck-deductions-explained/) beginning in January. In a sense, this is business as usual. Every fall, the IRS announces inflation adjustments to tax brackets, standard deductions and dozens of other tax provisions based on formulas set by Congress. But this year and [last year's increases](https://money.com/tax-brackets-2022/) were unusually large because [inflation](https://money.com/items-prices-rising-faster-than-inflation/) — which hit 8.2% in September — has been so high. The standard deduction is growing, too, jumping by about 7% for 2023. ## The right Tax Relief firm makes all the difference, especially if you owe over $10,000 in taxes. ### Get the tailored experience that you expect from the tax litigation professionals in your area. Click on your state to get started! [Get Started](https://money.com/pr/kc0833a52be9?ap_referrer=%2Ftax-brackets-2023-inflation%2F) ## New tax brackets for 2023 Federal income taxes in the U.S. are based on a graduated-rate structure, which means taxpayers pay higher rates on income earned beyond certain thresholds. There are seven rates, which will remain unchanged from 2022 to 2023. It's the tax brackets — the actual income thresholds that determine those tax rates — that are rising. In 2023, the lowest income tax rate of 10% will apply to the first $11,000 a single-filing individual earns. This is up from a $10,275 cutoff in 2022. The top-earning single filers will pay the highest rate of 37% on incomes over $578,125 in 2023. That threshold is increasing by more than $38,000 from this year's $539,900. Here are the tax brackets for single filers in 2023: - **10%**: $0 to $11,000 - **12%**: $11,000 to $44,725 - **22%**: $44,725 to $95,375 - **24%:** $95,375 to $182,100 - **32%**: $182,100 to $231,250 - **35%**: $231,250 to $578,125 - **37%**: $578,125 and up ## If you owe more than $10,000 in taxes, Tax Relief can allow you to break down your debt into payments ### Anthem Tax Relief provides a full menu of tax relief services to help clients get out from under the yoke of tax debt. [Get Started](https://money.com/pr/u8c9d1d14e7a?ap_referrer=%2Ftax-brackets-2023-inflation%2F) ## What is the standard deduction for 2023? For single filers, the 2023 standard deduction will be $13,850, an increase of $900 from 2022. It's an even larger jump than the $400 increase [the agency](https://money.com/irs-funding-higher-taxes-more-audits/) announced last year. The standard deduction is a set amount of income that you don’t need to pay federal taxes on. Largely due to the 2017 Tax Cuts and Jobs Act, the vast majority of taxpayers [take the standard deduction](https://money.com/tax-changes/) instead of itemizing their returns. In 2023, the deduction for married couples filing jointly will rise by $1,800 to $27,700. For heads of households (aka unmarried taxpayers with dependents), it will increase by $1,400 to $20,800. More details regarding the new inflation adjustments are available on the [IRS website](https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023). ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/tax-brackets-2023-inflation/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Taxes", "item": "https://money.com/taxes/" }, { "@type": "ListItem", "position": 3, "name": "Tax Breaks", "item": "https://money.com/tax-breaks/" }, { "@type": "ListItem", "position": 4, "name": "2023 Tax Brackets: You Might Owe the IRS Less Next Year Thanks to Inflation" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/tax-brackets-2023-inflation/#webpage", "url": "https://money.com/tax-brackets-2023-inflation/", "name": "2023 Tax Brackets: You Might Owe the IRS Less Next Year Thanks to Inflation", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-10-19T18:02:55.000Z", "mainEntity": { "@id": "https://money.com/tax-brackets-2023-inflation/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/tax-brackets-2023-inflation/#breadcrumb" }, "dateModified": "2022-10-19T18:02:55.000Z" }, { "@type": "NewsArticle", "headline": "2023 Tax Brackets: You Might Owe the IRS Less Next Year Thanks to Inflation", "articleSection": "Taxes", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/10/News-Federal-Income-Tex-Brackets-2023.jpg", "width": 2880, "height": 1920, "caption": "News-Federal-Income-Tex-Brackets-2023" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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