2022 Rates and 2023 Inflation Tables
Recently, inflation has gone up and as a result, most COLA amounts have also increased. As you plan your 2023 taxes, it’s important to take these changes into account.
Every year, the IRS factors inflation into its calculations of new tax rates, as well as maximum contributions for accounts such as retirement savings. This helps counteract the effects of rising prices in the economy.
For your convenience, we have compiled the new IRS annual cost-of-living adjustment (COLA) rates for 2023 with respect to several tax provisions.
As always, the CJBS team is happy to answer any questions you may have, to ensure that you are optimizing your tax refund. To view the current tables, please visit here.
The following tables provide a year-to-year COLA comparison for 2022 and 2023:
- 2022/2023 TAX BENEFIT
- 2022 INDIVIDUAL INCOME TAX RATES
- 2023 INDIVIDUAL INCOME TAX RATES
- 2022 TRUST & ESTATES INCOME TAX BRACKETS
- 2023 TRUST & ESTATES INCOME TAX BRACKETS
- 2022 ALTERNATIVE MINIMUM TAX EXEMPTION
- 2023 ALTERNATIVE MINIMUM TAX EXEMPTION
- 2022 TAXABLE INCOME THRESHOLD FOR LONG-TERM CAPITAL GAINS RATE
- 2023 TAXABLE INCOME THRESHOLD FOR LONG-TERM CAPITAL GAINS RATE
- GIFT & ESTATE TAX EXEMPTIONS
- 2022 AND 2023 DOLLAR LIMIT FOR RETIREMENT PLANS
- HEALTH SAVINGS ACCOUNT
- 2023 EARNED INCOME TAX CREDIT (EITC) PARAMETERS
2022/2023 Tax Benefit
| Standard Deduction | 2022 | 2023 |
|---|---|---|
| Married-Joint | $25,900 | $27,700 |
| Single | $12,950 | $13,850 |
| Married-Separate | $12,950 | $13,850 |
| Head of Household | $19,400 | $20,800 |
| Foreign Earned Income Exclusion | $112,000 | $120,000 |
| Maximum Taxable Social Security Earnings Base | $147,000 | $160,200 |
2022 Individual Tax Income Rates
| Rate | Single | Head of Household | Married-Joint | Married-Separate |
|---|---|---|---|---|
| 10% | $0 – $10,275 | $0 – $14,650 | $0 – $20,550 | $0 – $10,275 |
| 12% | $10,276 – $41,775 | $14,651 – $55,900 | $20,551 – $83,550 | $10,276 – $41,775 |
| 22% | $41,776 – $89,075 | $55,901 – $89,050 | $83,551 – $178,150 | $41,776 – $89,075 |
| 24% | $89,076 – $170,050 | $89,051 – $170,050 | $178,151 – $340,100 | $89,076 – $170,050 |
| 32% | $170,051 – $215,950 | $170,051 – $215,950 | $340,101 – $431,900 | $170,051 – $215,950 |
| 35% | $215,951 – $539,900 | $215,951 – $539,900 | $431,901 – $647,850 | $215,951 – $323,925 |
| 37% | Over $523,900 | Over $539,900 | Over $647,850 | Over $323,925 |
2023 Individual Tax Income Rates
| Rate | Single | Head of Household | Married-Joint | Married-Separate |
|---|---|---|---|---|
| 10% | $0 – $11,000 | $0 – $15,700 | $0 – $22,000 | $0 – $11,000 |
| 12% | $0 – $11,000 | $15,701 – $59,850 | $0 – $22,000 | $0 – $11,000 |
| 22% | $11,001 – $44,725 | $59,851 – $95,350 | $22,001 – $89,450 | $11,001 – $44,725 |
| 24% | $44,726 – $95,375 | $95,351 – $182,100 | $89,451 – $190,750 | $44,726 – $95,375 |
| 32% | $95,376 – $182,100 | $182,101 – $231,250 | $190,751 – $364,200 | $95,376 – $182,100 |
| 35% | $182,101 – $231,250 | $231,251 – $578,100 | $364,201 – $462,500 | $182,101 – $231,250 |
| 37% | Over $231,250 | Over $578,100 | Over $462,500 | Over $231,250 |
2022 Trust & Estates Income Tax Brackets
| Over | Not Over | The Tax Is | …Of Amount Over |
|---|---|---|---|
| $0 | $2,650 | 10% | $0 |
| $2,750 | $9,550 | $275 + 24% | $2,750 |
| $9,850 | $13,450 | $1,979 + 35% | $9,850 |
| $13,450 | – | $3,146 + 37% | $13,450 |
2023 Trust & Estates Income Tax Brackets
| Over | Not Over | The Tax Is | …Of Amount Over |
|---|---|---|---|
| $0 | $2,900 | 10% | $0 |
| $2,900 | $10,550 | $290 + 24% | $2,900 |
| $10,550 | $14,450 | $2,126 + 35% | $10,550 |
| $14,450 | – | $3,491 + 37% | $14,450 |
2022 Alternative Minimum Tax Exemption
| 2022 Exception | Phase-Out Threshold | Complete Phase-Out of Exemption | |
|---|---|---|---|
| Married Filing Jointly | $118,600 | $1,079,800 | $1,552,200 |
| Married Filing Single | $59,050 | $539,900 | $776,100 |
| Single | $75,900 | $539,900 | $843,500 |
| Estates and Trust | $26,500 | $88,300 | $194,300 |
2023 Alternative Minimum Tax Exemption
| 2023 Exception | Phase-Out Threshold | Complete Phase-Out Exemption | |
|---|---|---|---|
| Married Filing Jointly | $75,900 | $1,156,300 | $1,662,300 |
| Married Filing Single | $63,250 | $578,150 | $903,350 |
| Single | $81,300 | $578,150 | $831,150 |
| Estates and Trust | $28,400 | $94,600 | $208,200 |
2022 Taxable Income Threshold for Long-Term Capital Gains Rate
| Filing Status | 0% Rate for Long-Term Capital Gains and Qualified Dividends | 15% Rate for Long-Term Capital Gains and Qualified Dividends | 20% Rate for Long-Term Capital Gains and Qualified Dividends |
|---|---|---|---|
| Married Filing Jointly | Up to $83,350 | $83,351 – $517,200 | Over $517,200 |
| Head of Household | Up to $55,800 | $55,801 – $488,500 | Over $488,500 |
| Single | Up to $41,675 | $41,676 – $459,750 | Over $459,750 |
| Married Filing Single | Up to $41,675 | $41,676 – $258,600 | Over $258,600 |
| Trusts & Estates | Up to $2,800 | $2,801 – $13,700 | $13,700 |
2023 Taxable Income Threshold for Long-Term Capital Gains Rate
| Filing Status | 0% Rate for Long-Term Capital Gains and Qualified Dividends | 15% Rate for Long-Term Capital Gains and Qualified Dividends | 20% Rate for Long-Term Capital Gains and Qualified Dividends |
|---|---|---|---|
| Married Filing Jointly | Up to $89,250 | Up to $553,850 | Over $553,850 |
| Head of Household | Up to $59,750 | Up to $523,050 | Over $523,050 |
| Single | Up to $44,625 | Up to $492,300 | Over $492,300 |
| Married Filing Single | Up to $44,625 | Up to $276,900 | Over $276,900 |
| Trusts & Estates | Up to $3,000 | Up to $14,650 | Over $14,650 |
Gift & Estate Tax Exemptions
| 2022 | 2023 | |
|---|---|---|
| Gift Tax Exemption | $12,060,000 | $12,920,000 |
| Estate Tax Exemption | $12,060,000 | $12,920,000 |
| GST Tax Exemption | $12,060,000 | $12,920,000 |
| Annual Exclusion | $16,000 | $17,000 |
| Annual Exclusion (For gifts to spouses who are not U.S. Citizens) | $164,000 | $175,000 |
2022 and 2023 Dollar Limit for Retirement Plans
| Plan Types | 2022 Limits | 2023 Limits |
|---|---|---|
| Defined Contribution Plans | $61,000 | $66,000 |
| Defined Benefit Plans | $245,000 | $265,000 |
| Defined Contribution Plans – 401(k), 403(B) and 457 and Thrift Plans under Age 50 | $20,500 | $22,500 |
| Age 50 and Older | $27,000 | $30,000 |
| Simple Plans: Under Age 50 | $14,000 | $15,500 |
| Age 50 and Older | $17,000 | $19,000 |
| Qualified Plans – Annual Compensation Limit | $305,000 | $330,000 |
| Traditional IRA AGI Phase-Out (MFJ with participant in employer plan) | $109,000 | $116,000 |
| Traditional IRA AGI Phase-Out (MFJ with taxpayer not an active participant, spouse in employer plan) | $204,000 | $228,000 |
| Traditional IRA AGI Phase-Out (Single/HOH) | $68,000 | $73,000 |
| Roth IRA Contributions AGI Phase-Out (Single/HOH) | $144,000 | $153,000 |
| Roth IRA Contributions AGI Phase-Out (MFJ) | $214,000 | $228,000 |
| Other Thresholds | 2022 Limits | 2023 Limits |
|---|---|---|
| SEP Annual Contribution Limit | $61,000 | $66,000 |
| Key Employee in a Top-Heavy Plan | $200,000 | $215,000 |
| Highly Compensated Employee | $135,000 | $150,000 |
Health Savings Account
| Contribution Limits 2022 | 2022 | 2023 |
|---|---|---|
| Single/Family | $3,650 / $7,300 | $3,850 / $7,750 |
| Age 55 + IRA Catch-up Contribution | $1,000 | $1,000 |
2023 Earned Income Tax Credit (EITC) Parameters
| Filing Status | No Children | One Child | Two Children | Three or More Children | |
|---|---|---|---|---|---|
| Single or Head of Household | Income at Max Credit | $17,640 | $46,560 | $52,918 | $56,838 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 | |
| Married Filing Jointly | Income at Max Credit | $24,210 | $53,120 | $59,478 | $63,698 |
| Maximum Credit | $600 | $3,995 | $6,604 | $7,430 |