​

2023

 

Rate     Single Filers                  Married Joint Filers         Head of Household Filers     

 

10%     $0 to $11,000                   $0 to $22,000                     $0 to $15,700

12%     $11,001 to $44,725          $22,001 to $89,450            $15,700 to $59,850

22%     $44,726 to $95,375          $89,451 to $190,750          $59,851 to $95,350

24%    $95,376 to $182,100        $190,751 to $364,200         $95,351 to $182,100

32%    $182,101 to $231,250     $364,201 to $462,500          $182,101 to $231,250

35%    $231,251 to $578,125     $462,501 to $693,750         $231,251 to $578,100

37%    $578,126 +                      $693,751 +                          $578,101 +

​

​

2023 Standard Deduction Amounts

 

There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both. For example, if you claim the standard deduction, you cannot itemize deductions – and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.

 

The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2023 the standard deduction amounts are as follows:

                                                 2022                                       2023

Filing Status                   Standard Deduction              Standard Deduction

Single                                   $12,950                               $13,850

Married Filing Jointly         $25,900                               $27,700

Married Filing Separately  $12,950                              $13,850

Head of Household             $19,400                              $20,800

Qualifying Widow(er)         $25,900                              $27,700

 

2023 Capital Gains Rates

The federal tax rate on long-term capital gains typically is determined by the type of asset and your marginal ordinary income tax rate. Capital gains tax rates on most assets held for less than a year correspond to ordinary income tax brackets. For certain investment real estate, business, and collectible assets, gains could have different tax rates.

 

As a general rule, long-term capital gains rates apply to gains resulting from the sale of assets held for more than one year. Short-term capital gains on assets held for one year or less are taxed at ordinary federal income tax rates.

 

 

Rate     Single Filers                          Married Joint Filers            

 

0%     $0 to $44,625                           $0 to $89,250                  

15%     $44,626 to $492,300             $89,251 to 553,850        

20%     $492,300  +                          $553,851  +                      

​

 

2023 Corporations and Business Rates

 

 - straight 21% tax rate applied on C-corp income; no change from 2020

-  20% deduction of qualified business income of S-corps, partnerships and sole proprietorships, subject to limitations

 

2023 Retirement Contribution Rates

 

Maximum contribution amounts: (catch-up for those over age 50)(thresholds/eligibility/other rules apply/reduce max amounts)

- 401K, 403(b) etc    $22,500 (catch-up) $7,500

- Simple plans          $15,500 (catch-up) $3,500

- SEP's                     $66,000

- IRA                        $6,500 (catch-up) $1,000