Amid soaring inflation, the IRS has announced higher federal income tax brackets and standard deductions for 2023.
The agency raised the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024.
The 37% top marginal tax rate will apply to individual income above $578,125 and married couples’ income above $693,750 next year, as those thresholds go up 7% from 2022.
The standard deduction will climb to $27,700 for married couples and $13,850 for individuals, both also up about 7% from this year. Learn more.