The tax rates and deduction amounts for the 2023 calendar year are listed below.
Federal ordinary income tax rates
| Single taxpayers | |
| If taxable income is between: | The tax is: |
| 0 – 11,000 | 10% of taxable income |
| 11,000 – 44,725 | $1,100 + 12% of the amount over 11,000 |
| 44,725 – 95,375 | 5,147 + 22% of the amount over 44,725 |
| 95,375 – 182,100 | 16,290 + 24% of the amount over 95,375 |
| 182,100 – 231,250 | 37,104 + 32% of the amount over 182,100 |
| 231,250 – 578,125 | 52,832 + 35% of the amount over 231,250 |
| 578,900 and above | 174,238 + 37% of the amount over 578,900 |
| Married filing jointly or Surviving Spouses | |
| If taxable income is between: | The tax is: |
| $ 0 – 22,000 | 10% of taxable income |
| 22,000 – 89,450 | $2,200 + 12% of the amount over 22,000 |
| 89,450 – 190,750 | 10,294 + 22% of the amount over 89,450 |
| 190,750 – 364,200 | 32,580 + 24% of the amount over 190,750 |
| 364,200 – 462,500 | 74,208 + 32% of the amount over 364,200 |
| 462,500 – 693,750 | 105,664 + 35% of the amount over 462,500 |
| 693,750 and above | 186,602 + 37% of the amount over 693,750 |
| Head of household | |
| If taxable income is between: | The tax is: |
| $ 0 – 15,700 | 10% of taxable income |
| 15,700 – 59,850 | $1,570 + 12% of the amount over 15,700 |
| 59,850 – 95,350 | 6,868 + 22% of the amount over 59,850 |
| 95,350 – 182,100 | 14,678 + 24% of the amount over 95,350 |
| 182,100 – 231,250 | 35,498 + 32% of the amount over 182,100 |
| 231,250 – 578,100 | 51,226 + 35% of the amount over 231,250 |
| 578,100 and above | 172,624 + 37% of the amount over 578,100 |
| Married filing separately | |
| If taxable income is between: | The tax is: |
| 0 – 11,000 | 10% of taxable income |
| 11,000 – 44,725 | $1,100 + 12% of the amount over 11,000 |
| 44,725 – 95,375 | 5,147 + 22% of the amount over 44,725 |
| 95,375 – 182,100 | 16,290 + 24% of the amount over 95,375 |
| 182,100 – 231,250 | 37,104 + 32% of the amount over 182,100 |
| 231,250 – 346,875 | 52,832 + 35% of the amount over 231,250 |
| 346,875 and above | 93,301 + 37% of the amount over 346,875 |
Basic standard deduction
| Single | Married filing jointly and SS | Head of household | Married filing separately |
| $13,850 | $27,700 | $20,800 | $13,850 |
Each additional standard deduction (65 or over or blind):
| Single | Married filing jointly and SS | Head of household | Married filing separately |
| $1,850 | $1,500 | $1,850 | $1,500 |
FICA (employment tax)
| Employer-side Social Security | 6.2% on first $160,200 |
| Employer-side Medicare | 1.45% uncapped |
| Employee-side Social Security | 6.2% on first $160,200 |
| Employee-side Medicare | 1.45% uncapped |
| Employee-side Additional Medicare | 0.9% above $200K (single)/$250K (MFJ) |
| Total on first $160,200 | 7.65% employer/7.65% employee |
SECA (self-employment tax)
| Social Security | 12.4% on first $160,200 |
| Medicare | 2.9% uncapped |
| Additional Medicare | 0.9% above $200K (single)/$250K (MFJ) |
| Total on first $160,200 | 15.3% |
Capital Gains Rates
The tax rate is 0%, 15%, or 20% depending on the amount of adjusted net taxable gain as shown below.
| Single taxpayers | |
| $0 – 44,625 | 0% |
| 44,625 – 492,300 | 15% |
| Above 492,300 | 20% |
| Married filing jointly or SS | |
| $0 – 89,250 | 0% |
| 89,250 – 553,850 | 15% |
| Above 553,850 | 20% |
| Head of household | |
| $0 – 59,750 | 0% |
| 59,750 – 523,050 | 15% |
| Above 523,050 | 20% |
| Married filing separately | |
| $0 – 44,625 | 0% |
| 44,625 –276,925 | 15% |
| Above 276,925 | 20% |
Alternative Minimum Tax Exemption Amount
| Single | Married filing jointly and SS | Head of household | Married filing separately |
| $81,300 | $126,500 | $81,300 | $63,250 |
For 2023, a taxpayer’s AMT is initially determined as the sum of 26% of the first $220,700 (or $110,350, in the case of married taxpayers filing separately) of alternative minimum tax income (AMTI) in excess of the allowable exemption amount and 28% of any additional AMTI.
Gift Tax Exclusion
The annual exclusion in 2023 for gift tax purposes is $17,000, meaning you can gift $17,000 to as many people as you want without any federal gift tax consequences. If you split your gift with your spouse, the amount is $34,000 per person.
Mike Baker frequently advises with respect to tax rates. He possesses a breadth and depth of experience in tax and employee benefits & compensation law that spans multiple decades. For additional information, please contact mike@mbakertaxlaw.com.