Due to inflation, IRS raises standard deduction and tax brackets for 2023
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.
The top tax rate, 37 percent, will apply to individuals whose income is above $578,125 and married couples filing jointly with an income of more than $693,750. In both cases, that's up 7 percent from 2022.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
This will be reflected in paycheck withholding statements in January. These changes come after the Social Security Administration announced last week that a cost of living adjustment (COLA) of 8.7 percent will go into effect in 2023, the largest COLA increase in four decades, the Post says.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia is night editor for TheWeek.com. Her writing and reporting has appeared in Entertainment Weekly and EW.com, The New York Times, The Book of Jezebel, and other publications. A Southern California native, Catherine is a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
'Horror stories of women having to carry nonviable fetuses'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Haiti interim council, prime minister sworn in
Speed Read Prime Minister Ariel Henry resigns amid surging gang violence
By Peter Weber, The Week US Published
-
Today's political cartoons - April 26, 2024
Cartoons Friday's cartoons - teleprompter troubles, presidential immunity, and more
By The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published