If you start now, you can make plans to reduce your 2023 tax bill. Knowing the tax brackets for 2023 can help you implement smart tax strategies, like adjusting your income tax withholding, so you don’t get caught with a big tax bill next year.
How the brackets work
In the U.S. tax system, income tax rates are graduated, so you pay different rates on different amounts of taxable income. There are seven of these tax brackets in all. The more you make, the more you pay.
Importantly, your highest tax bracket doesn’t reflect how much you pay in federal income taxes. If you’re a single filer in the 22 percent tax bracket for 2023, you won’t pay 22 percent on all your taxable income. You will pay 10 percent on taxable income up to $11,000, 12 percent on the amount from $11,000 to $44,725, and 22 percent above that (up to $95,375).