In the United States we have a progressive income tax where “Taxable Income” must be calculated in order to determine the tax bracket and tax rate you pay. The process of calculating taxable income is:
- determine total income from all income sources
- determine adjustments to income (also know as above the line deductions)
- Adjusted Gross Income (AGI) equals total income minus adjustments
- apply Standard Deduction or itemized deductions
- Taxable Income equals AGI minus deductions
Once taxable income is calculated taxes owed can be calculated using the below tax bracket tables, pick the table for your filing type.
If your taxes are simple with a single income source and minimal deductions you can estimate your taxes by taking your total income and subtracting the Standard Deduction to derive your Taxable Income.
2023 Standard Deduction
If you earn less than the standard deduction for your filing type you do not have to file taxes. However, if you paid federal income tax all of it would be owed back to you and possibly more based on other adjustments and credits you might qualify for.
| Standard Deduction | Filing Type |
|---|---|
| $13,850 | Single |
| $27,700 | Married filing jointly |
| $13,850 | Married filing separately |
| $20,800 | Head of household |
| $1,850 | Additional for Single or HH if 65 or older |
| $1,850 | Additional for Single or HH if blind |
| $1,500 | Additional per individual for Married filers (single or joint) 65 or older |
| $1,500 | Additional per individual for Married filers (single or joint) blind |
2023 Tax Brackets
Single filers tax table:
| Rate | Taxable income | Tax calculation |
|---|---|---|
| 10% | $0 – $11,000 | 10% of taxable income |
| 12% | $11,001 – $44,725 | $1,100 plus 12% of amount over $11,000 |
| 22% | $44,726 – $95,375 | $5,147 plus 22% of the amount over $44,725 |
| 24% | $95,376 – $182,100 | $16,290 plus 24% of the amount over $95,375 |
| 32% | $182,101 – $231,250 | $37,104 plus 32% of the amount over $182,100 |
| 35% | $231,251 – $578,125 | $52,832 plus 35% of the amount over $231,250 |
| 37% | $578,126 and more | $174,238.25 plus 37% of the amount over $578,125 |
Married filing jointly tax table:
| Rate | Taxable income | Tax calculation |
|---|---|---|
| 10% | $0 – $22,000 | 10% of taxable income |
| 12% | $22,001 – $89,450 | $2,200 plus 12% of the amount over $22,000 |
| 22% | $89,451 – $190,750 | $10,294 plus 22% of the amount over $89,450 |
| 24% | $190,751 – $364,200 | $32,580 plus 24% of the amount over $190,750 |
| 32% | $364,201 – $462,500 | $74,208 plus 32% of the amount over $364,200 |
| 35% | $462,501 – $693,750 | $105,664 plus 35% of the amount over $462,500 |
| 37% | $693,751 and more | $186,601.50 plus 37% of the amount over $693,750 |
Married filing separately tax table:
| Rate | Taxable income | Tax calculation |
|---|---|---|
| 10% | $0 – $11,000 | 10% of taxable income |
| 12% | $11,001 – $44,725 | $1,100 plus 12% of the amount over $11,000 |
| 22% | $44,726 – $95,375 | $5,147 plus 22% of the amount over $44,725 |
| 24% | $95,376 – $182,100 | $16,290 plus 24% of the amount over $95,375 |
| 32% | $182,101 – $231,250 | $37,104 plus 32% of the amount over $182,100 |
| 35% | $231,251 – $346,875 | $52,832 plus 35% of the amount over $231,250 |
| 37% | $346,876 and more | $93,300.75 plus 37% of the amount over $346,875 |
Head of Household tax table:
| Rate | Taxable income | Tax calculation |
|---|---|---|
| 10% | $0 – $15,700 | 10% of taxable income |
| 12% | $15,701 – $59,850 | $1,570 plus 12% of the amount over $15,700 |
| 22% | $59,851 – $95,350 | $6,868 plus 22% of the amount over $59,850 |
| 24% | $95,351 – $182,100 | $14,678 plus 24% of the amount over $95,350 |
| 32% | $182,101 – $231,250 | $35,498 plus 32% of the amount over $182,100 |
| 35% | $231,251 – $578,100 | $51,226 plus 35% of the amount over $231,250 |
| 37% | $578,101 and more | $172,623.50 plus 37% of the amount over $578,100 |