Federal tax brackets are important because they determine how your income is taxed. With that in mind, here we discuss the 2023 tax brackets and answer some other common questions about tax brackets.
What Are Tax Brackets?
Tax brackets are a series of ranges that show how each portion of your income is taxed by the federal government.
To understand how tax brackets work, take a look at the 2023 tax brackets in the next section. As you can see, the list contemplates seven brackets starting at 10% for incomes of $11,000 or less.
This means that single filers with a taxable income of $20,000 will pay 10% in taxes for the first $11,000 of their taxable income and 12% (the rate of the next tax bracket) for the remaining $9,000.
The tax bracket where your top dollar falls into is known as the marginal tax bracket.
What Are the 2023 Tax Brackets?
Your tax bracket will depend on two basic factors: your income and filing status. For example, here are the seven 2023 tax brackets (that is, for taxes due April 2024).
2023 Tax Brackets: Single Filers
- 37% for incomes over $578,125
- 35% for incomes over $231,250
- 32% for incomes over $182,100
- 24% for incomes over $95,375
- 22% for incomes over $44,725
- 12% for incomes over $11,000
- 10% for incomes of $11,000 or less
2023 Tax Brackets: Married Couples Filing Jointly
- 37% for incomes over $693,750
- 35% for incomes over $462,500
- 32% for incomes over $364,200
- 24% for incomes over $190,750
- 22% for incomes over $89,450
- 12% for incomes over $22,000
- 10% for incomes of $22,000 or less
Interested in learning more about tax brackets? Stay tuned for more tax tips or contact our experts today to get answers to all your tax questions.
La Senda Enterprises: Tax Preparation and More
From income tax preparation to bookkeeping, at La Senda enterprises we offer a full range of professional services designed to make your life easier.
We are located in Rancho Cucamonga, California, and serve clients all over the Golden State and beyond. Get in touch today by email at info@lasendaenterpriseinc.com or by phone at 909-466-5522.