Some individuals may have to follow a special tax structure not listed here, such as the Alternative Minimum Tax (AMT) for certain high-income taxpayers.
Only used in rare situations, as you will usually wind up paying more income tax than if you filed jointly. Married Filing Separately - MFS is a special filing type for individuals who are married, but choose to file separate income tax returns.Head of Household tax brackets are wider than Single brackets, but not as wide as joint brackets. Head of Household - Head of Household is a special filing status reserved for single individuals who support one or more dependants by themselves.
As a result, MFJ brackets are the most tax-advantagous. The width of the first three tax brackets are doubled, and the highest four brackets are expanded (but not doubled) for joint filers. Married Filing Jointly - The Married Filing Jointly tax brackets are applicable to all legally married couples filing their income tax on a joint return.Single - The Single brackets, applicable to all single non-joint filers, have the narrowest bracket width and generally result in the highest individual income tax.These bracket types allow taxpayers filing as Married Filing Jointly or Head of Household to pay less in taxes by widening (doubling, in the case of MFJ) each tax bracket's width. There are four complete sets of tax brackets for different filing types, each with different bracket widths. This will result in lower Federal income taxes for those whose salaries haven't kept pace with inflation. With typical inflation adjustments a mere 1-2%, the 2023 Federal income tax brackets have been adjusted for inflation by as much as 10.5%. With inflation at historical highs, the IRS has adjusted Federal tax brackets significantly to account for inflation. This page explains how these tax brackets work, and includes a Federal income tax calculator for estimating your tax liability.įederal Income Tax Brackets Indexed for Inflation The Federal Income Tax consists of seven marginal tax brackets, ranging from a low of 10% to a high of 39.6%. Federal income tax brackets were last changed one year ago for tax year 2022, and the tax rates were previously changed in 2017.įederal tax brackets are indexed for inflation, and are updated yearly to reflect changes in cost of living.
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