ARLINGTON, Va., September 13, 2022 /PRNewswire/ — Bloomberg Tax today released its projected U.S. tax rates for 2023, which projects inflation-adjusted amounts in the tax code will increase by approximately 7.1% from 2022, more than double last year’s 3% increase. Bloomberg Tax also predicts that several key deductions for taxpayers will see notable year-over-year increases, with the exclusion of foreign-earned income rising to $120,000 of $112,000 and the annual exclusion for gifts of up to $17,000 of $16,000thus allowing taxpayers to increase their donations without tax consequences.
Published annually, Bloomberg Tax’s Projected U.S. Tax Rates report provides early and accurate notice of the potential tax savings that could be realized due to increased deduction limits, upward adjustments to tax brackets and increases to many other key thresholds. The full report is available at http://onb-tax.com/xuQh50KHZ18.
“We expect the inflation-adjusted amounts in the tax code to increase significantly in 2023 compared to previous years due to the economic environment,” said Heather Rothmann, vice president, analytics and content, Bloomberg Tax. “Taxpayers and advisors can use our projections to begin their 2023 tax planning before the IRS releases the official 2023 inflation-adjusted amounts later this year.”
The report also accounts for changes made under the recently enacted Cut Inflation Act, including increasing the §179D deduction for energy-efficient commercial building properties if new wage requirements and apprenticeships are met, which may attract a more sophisticated type of worker for companies using this tax incentive.
Other key adjustments, with comparisons of 2022 amounts and 2023 projections, include:
Personal income tax brackets
|
Married filing jointly and surviving spouses |
|
|
2022 tax rate bracket income brackets |
Income ranges of tax rate brackets forecast for 2023 |
|
10% – $0 to $20,550 |
10% – $0 to $22,000 |
|
12% – $20,550 to $83,550 |
12% – $22,000 to $89,450 |
|
22% – $83,550 to $178,150 |
22% – $89,450 to $190,750 |
|
24% – $178,150 to $340,100 |
24% – $190,750 to $364,200 |
|
32% – $340,100 to $431,900 |
32% – $364,200 to $462,500 |
|
35% – $431,900 to $647,850 |
35% – $462,500 to $693,750 |
|
37% – $647,850 or more |
37% – $693,750 or more |
|
Unmarried persons (other than surviving spouses and heads of household) |
|
|
2022 tax rate bracket income brackets |
Income ranges of tax rate brackets forecast for 2023 |
|
10% – $0 to $10,275 |
10% – $0 to $11,000 |
|
12% – $10,275 to $41,775 |
12% – $11,000 to $44,725 |
|
22% – $41,775 to $89,075 |
22% – $44,725 to $95,375 |
|
24% – $89,075 to $170,050 |
24% – $95,375 to $182,100 |
|
32% – $170,050 to $215,950 |
32% – $182,100 to $231,250 |
|
35% – $215,950 to $539,900 |
35% – $231,250 to $578,125 |
|
37% – $539,900 or more |
37% – $578,125 or more |
Standard deduction
|
Filing status |
2022 Standard deduction |
Projection 2023 Standard deduction |
|
Married filing jointly/surviving spouses |
$25,900 |
$27,700 |
|
heads of families |
$19,400 |
$20,800 |
|
All other taxpayers |
$12,950 |
$13,850 |
Alternative Minimum Tax (AMT)
|
Filing status |
2022 AMT exemption amount |
Projection 2023 AMT exemption amount |
|
Married filing jointly/surviving spouses |
$118,100 |
$126,500 |
|
Unmarried individuals (other than surviving spouses) |
$75,900 |
$81,300 |
|
Groom filing separately |
$59,050 |
$63,250 |
|
Estates and trusts |
$26,500 |
$28,400 |
The 2023 Projected US Tax Rates report is based on changes to the chained consumer price index for all urban consumers, which were released today by the US Bureau of Labor Statistics.
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