Tax Brackets 2022-2023: How Much Tax You Owe (2024)

Tax Brackets 2022-2023: How Much Tax You Owe (1)

By

Nick Zaryzcki

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Reviewed by

Pat Taylor, EA, MBA

on

December 11, 2023

This article is Tax Professional approved

Tax brackets are how the IRS determines which income levels get taxed at which federal income tax rates. The higher the income you report on your tax return, the higher your tax rate.

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Here we’ll go over the new IRS federal tax brackets for the 2023 and 2024 tax years, how to figure out which ones you fall into, and give you a heads up about any other inflation-related changes to your taxes in 2023.

What are the 2023 federal income tax brackets?

Which tax bracket you fall into in the United States also depends on your filing status. Here are the 2023 tax brackets according to the IRS. These will be used for your 2023 tax year tax filing.

It’s broken into the four most common filing statuses: individual single filers, married individuals filing jointly, heads of households, and married individuals filing separately:

Tax rateIndividual single filersMarried filing jointly or qualifying widow(er)Married filing separatelyHead of household
10%$0 - $10,275$0 - $20,550$0 - $10,275$0 - $14,650
12%$10,276 - $41,775$20,551 - $83,550$10,276 - $41,775$14,651 - $55,900
22%$41,776 - $89,075$83,551 - $178,150$41,776 - $89,075$55,901 - $89,050
24%$89,076 - $170,050$178,1511 - $340,100$89,076 - $170,050$89,051 - $170,050
32%$170,051 - $215,950$340,101 - $431,900$170,051 - $215,950$170,051 - $215,950
35%$215,951 - $539,900$431,901 - $647,850$215,951 - $323,925$215,951 - $539,900
37%$539,901+$647,851+$323,926+$539,901+

What are the 2024 federal income tax brackets?

Below are the 2024 tax brackets according to the IRS. These will be used for your 2024 tax year filing:

Tax rateIndividual single filersMarried filing jointly or qualifying widow(er)Married filing separatelyHead of household
10%$0 - $11,000$0 - $22,000$0 - $11,000$0 - $15,700
12%$11,001 - $44,725$22,001 - $89,450$11,001 - $44,725$15,701 - $59,850
22%$44,726 - $95,375$89,451 - $190,750$44,726 - $95,375$59,851 - $95,350
24%$95,376 - $182,100$190,751 - $364,200$95,376 - $182,100$95,351 - $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 - $346,875$231,251 - $578,100
37%$578,126+$693,751+$346,876+$578,101+

How do tax brackets work?

Tax brackets are based on your taxable income, which is what you get when you take all of the money you’ve earned and subtract all of the tax deductions you’re eligible for. (Check out Bench’s Big List of Small Business Tax Deductions for more info.)

Once you’ve calculated your taxable income, it’s time to look at the IRS’s tax rate schedule—a fancy term for ‘big list of tax system brackets’—for the year you’re doing your taxes for.

(Keep in mind, these brackets are for income tax only; capital gains tax uses its own set of brackets.)

Let’s take the IRS tax brackets for individual single filers in 2023:

Tax rateTotal taxable income
10%$0 - $10,275
12%$10,276 - $41,775
22%$41,776 - $89,075
24%$89,076 - $170,050
32%$170,051 - $215,950
35%$215,951 - $539,900
37%$539,901+

Unless you made $10,275 or less in taxable income in 2023, it’s likely you fall into at least two brackets. This means different parts of your income is taxed at a different rate.

For example, let’s say that your taxable income ends up being $20,000. That means you’ll fall into two different tax brackets and get taxed at two different rates:

  • the $0 - $10,275 bracket, which taxes you at 10%
  • the $19,276 - $41,775 bracket, which taxes you at 12%

So you’ll pay two different tax rates: 10% on the first $10,275 ‘chunk’ of your income, and 12% on every dollar you made above $10,275.

In equation form, we’d write this out as:

Total tax = (10% x $10,275) + (12% x [$20,000-$10,275])

Total tax = $1027.50 + $1,167.00

Total tax bill = $2,194.50

We call the highest tax rate that you pay your marginal tax rate. In this example, your marginal tax rate is 12%.

How do I calculate my taxes using these tax brackets?

The math involved in calculating how much you owe from each ‘chunk’ of income can get complicated. To make things easier, here are four cheat sheets for determining the amount of tax you need to pay, organized by filing status:

Individual single filers

Remember: if on the last day of 2023 you were unmarried or legally separated from your spouse—and you don’t qualify for another filing status—you file your taxes in 2024 as an individual single taxpayer.

Here’s how much you are taxed:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $10,27510% of your taxable income
$10,276 - $41,775$1,027.50 plus 12% of any income you made above $10,275
$41,776 - $89,075$4,807.50 plus 22% of any income you made above $41,775
$89,076 - $170,050$15,213.50 plus 24% of any income you made above $89,075
$170,051 - $215,950$34,647.50 plus 32% of any income you made above $170,050
$215,951 - $539,900$49,335.50 plus 35% of any income you made above $215,950
$539,901+$162,718.00 plus 37% of any income you made above $539,900

Married filing jointly or qualifying widow(er)

If you’re married and both you and your spouse agree to file a joint return, or you’re a qualifying widow(er), use the following to figure out your taxes for 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $20,55010% of your taxable income
$20,551 - $83,550$2,055.00 plus 12% of any income you made above $20,550
$83,551 - $178,150$9,615.00 plus 22% of any income you made above $83,550
$178,151 - $340,100$30,427.00 plus 24% of any income you made above $178,150
$340,101 - $431,900$69,295.00 plus 32% of any income you made above $340,100
$431,901 - $647,850$98,671.00 plus 35% of any income you made above $431,900
$647,851+$174,253.50 plus 37% of any income you made above $647,850

Married filing separately

If you’re married and you decide that filing individually could lower your tax burden, or you and your spouse don’t agree to file a joint return, you’ll use this filing status.

Here’s how much married individuals filing separately are taxed on income in 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $10,27510% of your taxable income
$10,276 - $41,775$1,027.50 plus 12% of any income you made above $10,275
$41,776 - $89,075$4,807.50 plus 22% of any income you made above $41,775
$89,076 - $170,050$15,213.50 plus 24% of any income you made above $89,075
$170,051 - $215,950$34,647.50 plus 32% of any income you made above $170,050
$215,951 - $323,925$49,335.50 plus 35% of any income you made above $215,950
$323,926+$162,718.00 plus 37% of any income you made above $539,900

Head of household

If you:

  • Are unmarried
  • Paid more than half the cost of keeping up a home for the year
  • Live with a qualifying person for more than half the year

Then you might qualify for the “head of household” filing status. If so, use the following to figure out your taxes on income in 2023:

If your total taxable income for 2022 is…Then your taxes are…
$0 - $14,65010% of your taxable income
$14,651 - $55,900$1,465 plus 12% of any income you made above $14,650
$55,901 - $89,050$6,415.00 plus 22% of any income you made above $55,900
$89,051 - $170,050$13,708.00 plus 24% of any income you made above $89,050
$170,051 - $215,950$33,148.00 plus 32% of any income you made above $170,050
$215,951 - $539,900$47,836.00 plus 35% of any income you made above $215,950
$539,901+$161,218.50 plus 37% of any income you made above $539,900

Why do tax brackets change every year?

If you compare this year’s tax brackets to the ones from previous years, you might notice they’ve all been slightly adjusted. Why is that?

It all has to do with inflation. Every year the IRS tweaks the tax brackets to prevent “bracket creep,” which is what happens when inflation pushes you into a higher tax bracket.

If you haven’t looked up your bracket since 2017, there’s a major tax reform you should look out for. The Tax Cuts and Jobs Act passed in December of 2017 changed the way the IRS calculates inflation, which will mean smaller annual inflation adjustments down the road.

That increases your chances of getting bumped up into a higher tax bracket every year. If you just barely avoided entering a higher tax bracket this year and think you might be a borderline case next year, make sure to follow the IRS’s inflation adjustment announcements closely.

What are some other inflation adjustments I should look out for?

We mentioned earlier that the IRS’s tax brackets apply to your taxable income, which is what you get when you apply certain adjustments and deductions to your revenue.

One other way that the IRS helps guard against bracket creep is by adjusting the values of deductions to keep up with inflation. Here are the main ones you should look out for:

The standard deduction

Your standard deduction—the portion of your income that is protected from taxes—gets adjusted every year to keep up with inflation. The standard deduction amounts for the 2023 tax year (and their increases from the 2022 tax year) are:

  • $13,850 for single filers (up $900)
  • $13,850 for married taxpayers who file their taxes separately (up $900)
  • $20,800 for heads of households (up $1,400)
  • $27,700 for married taxpayers who file jointly (up $1,800)
  • $27,700 for qualifying widows or widowers (up $1,800)

Adjustments to income

Adjustments are a special kind of deduction that lets you reduce your taxable income even before you start applying the standard deduction or itemizing. You can find a summary of all the updated adjustment figures on the IRS website here.

Tax credits

Unlike deductions, which reduce your taxable income, tax credits directly reduce your tax amount owed. Tax credits that the IRS adjusted for inflation this year include:

The earned income credit increased to a range of $600 to $7,430 in 2023 depending on your filing status and the number of children you have. This is up slightly from $560 to $6,935 from last year.

The adjusted gross income (AGI) at which you start to lose the lifetime learning credit is $90,000 in 2023 for single filers. But for married couples filing jointly, the credit starts to phase out when your 2023 AGI reaches $180,000.

The maximum amount of qualified adoption expenses you can use to determine your adoption credit increased to $14,890 per child.

Further Reading:

  • How to Check Your Tax Refund Status in 5 Minutes
  • Adjusted Gross Income: A Simple Guide to AGI
  • What is the IRS Fresh Start Program?

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

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Tax Brackets 2022-2023: How Much Tax You Owe (2)

Tax Brackets 2022-2023: How Much Tax You Owe (2024)

FAQs

Tax Brackets 2022-2023: How Much Tax You Owe? ›

You'll notice that the tax rates for 2023 are the same as the rates for 2022: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the taxable income ranges for each federal income tax bracket are adjusted each year to account for inflation. As a result, the tax brackets for 2023 are different than the 2022 brackets.

How do you figure out how many taxes you owe? ›

There are several ways to discover whether you owe back taxes, including:
  1. You receive a notice from the IRS via mail. The IRS will let you know if you owe back taxes via a mailed notice. ...
  2. Log in to your tax account on IRS.gov. ...
  3. File or review tax returns. ...
  4. Contact the IRS at 800-829-1040.

At what income will I owe taxes? ›

Federal income taxes
Tax rateSingleMarried filing jointly
10%$0 to $11,000$0 to $22,000
12%$11,001 to $44,725$22,001 to $89,450
22%$44,726 to $95,375$89,451 to $190,750
24%$95,376 to $182,100$190,751 to $364,200
3 more rows

How do the 2022 and 2023 tax brackets compare? ›

You'll notice that the tax rates for 2023 are the same as the rates for 2022: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the taxable income ranges for each federal income tax bracket are adjusted each year to account for inflation. As a result, the tax brackets for 2023 are different than the 2022 brackets.

How do I know how much I owe to the government? ›

To find how much you owe,
  1. Log in to your CRA MyAccount online service and click on the Accounts and Payments tab at the top of the page.
  2. Click on the first link called Account Balance and Statement of Account.
  3. Next, you will be immediately shown your account balance.
Nov 18, 2019

How do you know if you owe taxes or get a refund? ›

If you are receiving a tax refund, check its status using the IRS Where's My Refund tool. You can view the status of your refund for the past 3 tax years. If you owe money or are receiving a refund, you can check your return status by signing in to view your IRS online account information.

Why do I owe taxes when I make less than $30,000? ›

How much you have withheld each paycheck is a function of your earnings and what you claim on your W-4. If you owe money, it is due to not having enough withheld during the year to cover your tax liability. You can revisit your W-4 with your payroll department to adjust your withholding accordingly.

Why do I owe taxes if I claim 0? ›

If you claimed 0 and still owe taxes, chances are you added “married” to your W4 form. When you claim 0 in allowances, it seems as if you are the only one who earns and that your spouse does not. Then, when both of you earn, and the amount reaches the 25% tax bracket, the amount of tax sent is not enough.

How do I find out how much I owe in back taxes to the IRS? ›

If you're unsure whether you owe money to the IRS, you can view your tax account information on IRS.gov.

What is tax bracket example? ›

Tax brackets show you the tax rate you will pay on each portion of your taxable income. For example, if you are single, the lowest tax rate of 10% is applied to the first $11,000 of your taxable income in 2023. The next chunk of your income is then taxed at 12%, and so on, up to the top of your taxable income.

What are the tax bracket amounts? ›

2023 tax brackets
Tax rateSingle filersHead of household
12%$11,001 to $44,725$15,701 to $59,850
22%$44,726 to $95,375$59,851 to $95,350
24%$95,376 to $182,100$95,351 to $182,100
32%$182,101 to $231,250$182,201 to $231,250
3 more rows

How do tax brackets actually work? ›

Income is actually divided into different levels, or "brackets", that have different tax rates. Each dollar of income is only taxed at the rate of the bracket it falls into. Think of these brackets like a series of buckets. Each bucket holds a certain amount of money and is taxed at a certain rate.

How much federal tax should I pay? ›

Tax brackets 2024 (taxes due April 2025)
Tax rateSingleMarried filing jointly
10%$0 to $11,600$0 to $23,200
12%$11,601 to $47,150$23,201 to $94,300
22%$47,151 to $100,525$94,301 to $201,050
24%$100,526 to $191,950$201,051 to $383,900
3 more rows
Apr 30, 2024

Are tax brackets based on gross income? ›

Tax brackets and marginal tax rates are based on taxable income, not gross income.

How do you know how much taxes you owe on W2? ›

Box 1: Details how much you were paid in wages, tips, bonuses and other compensation. Box 2: Shows how much federal income tax was withheld from your pay by your employer. Box 3: Shows much of your pay in Box 1 was subject to Social Security tax. Box 4: Shows how much Social Security tax was withheld from your pay.

How do you find the amount of tax you owe on the 1040? ›

If your tax payments (Line 33) are less than your Total Tax (Line 24), you owe tax. The amount you owe is shown on Line 37. If you did not pay enough tax during the year and owe an underpayment penalty, that amount is shown on Line 38. A full sample of a Form 1040 is listed below.

What is the average tax return for a single person making $60,000? ›

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

What is the average tax return for a single person making $35,000? ›

If you make $35,000 a year living in the region of California, USA, you will be taxed $6,243. That means that your net pay will be $28,757 per year, or $2,396 per month.

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