2022-2023 Tax Brackets Changing

America’s income tax rates are staying the same for the current tax season and next year’s. But the tax brackets—the buckets of income that are charged at progressively higher rates—have undergone major inflation adjustments because of the highest price increases in decades. ​

The IRS has released tax brackets for the 2023 tax year that have upper limits 7% higher than the brackets for 2022 returns. If your income isn’t keeping up with inflation, the increases in the brackets make it less likely you’ll pay higher tax rates. 
​You can use the tax brackets to determine how much you can expect to pay in taxes each year.  The 2023 tax year—meaning the return you’ll file in 2024—will have the same seven federal income tax brackets as the 2022-2023 season: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you’re in.

​Contact Us to discuss your individual situation.