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  • 2021 Vs 2022 Vs 2023 Federal Income Tax Brackets

    Posted Date September 1, 2023 Posted Time 12:00 pm Published in

    2020 Vs 2021 Vs 2022 Federal Income Tax Brackets

    The US tax system is progressive, meaning that the more you earn the more you pay. For the years 2021-2023 there are seven different brackets for each year (2020 was the same structure as well). Which bracket you are in depends on your taxable income; however, your bracket does not equal your tax rate.

    Tax brackets work so that you pay part of your income at each level bracket as you move-up in income. In other words, someone in the 32% marginal rate bracket will pay 10% on part of their income, 12% on another part, then 22% on another band of income, 24% on the next tranche and finally, 32% on everything else. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.

    Below are comparative tables for the taxable years 2021 – 2023. This way you can not only see the tax brackets that apply 2023 taxable income, but the trend changes over time.

    Updates to 2023 Tax Rates and Brackets

    Over the 3-year period shown below, there are seven brackets with progressive rates ranging from 10% up to 37% and they are the same overall years.

    Federal income tax rate brackets are indexed for inflation. The brackets are adjusted using the chained Consumer Price Index (CPI). There were no structural changes to the tax brackets in any of the periods, so the only impact are increases year-over-year due to the inflation indexing.

    The inflation adjustment factor for 2023 was 7% for example, raising income thresholds applied to the tax brackets across the board.

    Tax Rates and Brackets

    Below are the 2021-2023 tables for personal income tax rates. Note, that the 2023 figures below are the amounts applicable to the income earned during 2023 and paid in 2024 when you file your taxes.

     

    Tax Brackets & Rates

    Single Taxpayers
    2021 2022 2023
    10% 0 – $9,950 10% 0 – $10,275 10% 0 – $11,000
    12% $9,951 – $40,525 12% $10,276 – $41,775 12% $11,001 – $44,725
    22% $40,526 – $86,375 22% $41,776 – $89,075 22% $44,726 – $95,375
    24% $86,376 – $164,925 24% $89,076 – $170,050 24% $95,376 – $182,100
    32% $164,926 – $209,425 32% $170,051 – $215,950 32% $182,101 – $231,250
    35% $209,426 – $523,600 35% $215,951 – $539,900 35% $231,251 – $578,125
    37% $523,601and Over 37% $539,901 and Over 37% $578,126 and Over

     

    Married Filing Jointly and Surviving Spouses
    2021 2022 2023
    10% 0 – $19,900 10% 0 – $20,550 10% 0 – $22,000
    12% $19,901 – $81,050 12% $20,551 – $83,550 12% $22,001 – $89,450
    22% $81,051 – $172,750 22% $83,551 – $178,150 22% $89,451 – $190,750
    24% $172,751 – $329,850 24% $178,151 – $340,100 24% $190,751 – $364,200
    32% $329,851 – $418,850 32% $340,101 – $431,900 32% $364,201 – $462,500
    35% $418,851 – $628,300 35% $431,901 – $647,850 35% $462,501 – $693,750
    37% $628,301and Over 37% $647,851 and Over 37% $693,751 and Over

     

    Married Filing Separately
    2021 2022 2023
    10% 0 – $9,950 10% 0 – $10,275 10% 0 – $11,000
    12% $9,951 – $40,525 12% $10,276 – $41,775 12% $11,001 – $44,725
    22% $40,526 – $86,375 22% $41,776 – $89,075 22% $44,726 – $95,375
    24% $86,376 – $164,925 24% $89,076 – $170,050 24% $95,376 – $182,100
    32% $164,926 – $209,425 32% $170,051 – $215,950 32% $182,101 – $231,250
    35% $209,426 – $314,150 35% $215,951 – $323,925 35% $231,251 – $346,875
    37% $314,151and Over 37% $323,926 and Over 37% $346,876 and Over

     

    Heads of Housholds
    2021 2022 2023
    10% 0 – $14,200 10% 0 – $14,650 10% 0 – $15,700
    12% $14,201 – $54,200 12% $14,651 – $55,900 12% $15,701 – $59,850
    22% $54,201 – $86,350 22% $55,901 – $89,050 22% $59,851 – $95,350
    24% $86,351 – $164,900 24% $89,051 – $170,050 24% $95,351 – $182,100
    32% $164,901 – $209,400 32% $170,051 – $215,950 32% $182,101 – $231,250
    35% $209,401 – $523,600 35% $215,951 – $539,900 35% $231,251 – $578,100
    37% $523,601and Over 37% $539,901 and Over 37% $578,101 and Over

     

     

    Conclusion

    While the tax brackets are the same in 2023 as the prior year, the income thresholds increased 7% following hot inflation in the CPI. You can lower your marginal rate or at least reduce the amount of taxable income subject to it by optimizing itemized deductions.

Copyrights @ 2025 James O. Taylor