The IRS this week announced higher federal income tax brackets, standard deductions, and retirement plan contribution limits for 2023.
2023 Marginal Tax Brackets (Married Filing Jointly)
| Taxable income | Taxes owed |
|---|---|
| $22,000 or less | 10% of the taxable income |
| $22,001 to $89,450 | $2,200 plus 12% of amount over $22,000 |
| $89,451 to $190,750 | $10,294 plus 22% of amount over $89,450 |
| $190,751 to $364,200 | $32,580 plus 24% of amount over $190,750 |
| $364,201 to $462,500 | $74,208 plus 32% of amount over $364,200 |
| $462,501 to $693,750 | $105,664 plus 35% of amount over $462,500 |
| $693,751 or more | $186,601.50 plus 37% of amount over $693,750 |
Table: Gabriel Cortes / CNBCSource: IRS
2023 Marginal Tax Brackets (Single Individuals)
| Taxable income | Taxes owed |
|---|---|
| $11,000 or less | 10% of the taxable income |
| $11,001 to $44,725 | $1,100 plus 12% of amount over $11,000 |
| $44,726 to $95,375 | $5,147 plus 22% of amount over $44,725 |
| $95,376 to $182,100 | $16,290 plus 24% of amount over $95,375 |
| $182,101 to $231,250 | $37,104 plus 32% of amount over $182,100 |
| $231,251 to $578,125 | $52,832 plus 35% of amount over $231,250 |
| $578,126 or more | $174,238.25 plus 37% of amount over $578,125 |
Table: Gabriel Cortes / CNBCSource: IRS
Higher Standard Deduction
The standard deduction will also increase in 2023. The deduction will increase to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single/Individual filers can claim $13,850, an increase from $12,950 in 2022.
Retirement Plan Contribution Limits
| Employer-Sponsored Retirement Plan Limits | 2023 | 2022 |
| 401(k) / 403(b) Employee Contribution | $22,500 | $20,500 |
| 401(k) / 403(b) Catch-Up Contribution (Age 50+) | $7,500 | $6,500 |
| 401(k) / 403(b) Total Contribution (<Age 50) | $66,000 | $61,000 |
| 401(k) / 403(b) Total Contribution (Age 50+) | $73,500 | $67,500 |
| Annual Compensation Limit | $330,000 | $305,000 |
| SEP-IRA Contribution | $66,000 | $61,000 |
| SIMPLE IRA / SIMPLE 401(k) Contribution | $15,500 | $14,000 |
| Traditional IRA / Roth IRA Limits | 2023 | 2022 |
| Traditional IRA Contribution (<Age 50) | $6,500 | $6,000 |
| Traditional IRA Contribution (Age 50+) | $7,500 | $7,000 |
| Roth IRA Contribution (<Age 50) | $6,500 | $6,000 |
| Roth IRA Contribution (Age 50+) | $7,500 | $7,000 |
| Healthcare FSA / HSA Limits | 2023 | 2022 |
| Healthcare FSA Contribution | $3,050 | $2,850 |
| HSA Contribution (Single) | $3,850 | $3,650 |
| HSA Contribution (Family) | $7,750 | $7,300 |
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