Due to inflation, IRS raises standard deduction and tax brackets for 2023

The Internal Revenue Service headquarters in Washington, D.C.
(Image credit: Saul Loeb/AFP/Getty Images)

The Internal Revenue Service announced on Tuesday that in 2023, it is increasing the standard deduction and income thresholds for all tax brackets, meaning many Americans will see an increase in their paychecks starting in January.

These adjustments are due to inflation, and include the largest increase to the standard deduction since 1985, The Washington Post reports. For individuals, the standard deduction will go up to $13,850, a $900 increase from 2022, and for married couples, it will rise to $27,700, an increase of $1,800.

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