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As of October 22, 2022, the IRS made updates to over 60 different tax codes that affect you as an individual filer. Here are the biggest changes that will impact your 2023 tax season.

Tax Rate Tables

The tax rate you pay is a direct correlation of your earnings over the previous year. Simply put, wherever you fall on the spectrum for your Adjusted Gross Income (AGI), that will be the tax rate applied for your earnings. 

For the 2023 tax brackets, the tax rates are still in a range from 10% to 37% however, the earning ranges shifted slightly. So if you were on the edge of your tax bracket in 2022 you may have slipped into a higher tax bracket without any type of pay increase. Also, if you receive a pay increase throughout this year, that can bump you up as well.  

See the chart below for the updated ranges. 

2023 Income Tax Brackets

Percentage Single Filer Married Filing Jointly Married Filing Separate Head of Household


> $11,000
> $22,000
> $11,000
> $15,700













Capital Gains

Attention investors, crypto connoisseurs, and real estate moguls, long-term capital gains are being taxed differently in 2023 (in a good way). There’s a long-held understanding among investors that capital gains taxes are the norm for selling an asset for a profit. The government taxes those earnings separately from your salaried or earned income. 

There is a bonus however if you hold an asset for at least a year prior to selling you will be taxed less – it’s a “long-term capital gain tax”. If you sell prior to a year it’s now a “short-term capital gain tax” which is a much more aggressive applied rate. For 2023, the IRS is lending more lenience to those brackets which in turn is allowing investors to earn more in capital gains before being taxed. Below are the new brackets along with a comparison to 2022. 

Previous 2022 Long-Term Capital Gains Tax Rates

Filing Status 0% Rate 15% Rate 20% Rate
Up to $41,675


$41,676 – $459,750


Over $459,750


Married filing jointly
Up to $83,350


$83,351 – $517,200


Over $517,200


Married filing separately
Up to $41,675


$41,676 – $258,600


Over $258,600


Head of household
Up to $55,800


$55,801 – $488,500


Over $488,500


New 2023 Long-Term Capital Gains Tax Rates

Filing Status 0% Rate 15% Rate 20% Rate
Up to $44,625
$44,626 – $492,300
Over $492,300


Married filing jointly
Up to $89,250
$89,251 – $553,850
Over $553,850


Married filing separately
Up to $44,625
$44,626 – $276,900
Over $276,900
Head of household
Up to $59,750
$59,751 – $523,050
Over $523,050


Standard Deduction Increase

Also included as a direct result of inflation is an increase in standard deduction. The standard deduction is a portion of your AGI that isn’t subject to income tax. It’s common for the deduction to be increased incrementally year over year, but this is a considerable hike at 7%. For individuals, the deduction is now $13,850 and married couples filing jointly its $27,700. 

With this increase taxpayers could see a decrease in their tax bill, if they owe or they could now be subject to a refund. 

Child Tax Credit

family walking on sidewalk


Tax payers who have children and are eligible for the Child Tax Credit will be seeing some changes for 2023 now. Parents might remember a larger than normal refund in previous years due to the COVID-19 increases. However, we are now returning to pre-pandemic credits and parents should expect numbers closer to that of 2019 than 2020. Here’s what changed:

  • The Child Tax Credit is now for children 16 or younger (previously 17 or younger)
  • The credit has been reduced to $2,000 for all children (previously $3,000 for kids 6+ and $3,600 for 0-6)
  • The advance on the credit has been canceled (so no more $300 early monthly payout)

Earned Income Credit

Low to moderate income households also has an additional tax break at their disposal as a way to lower their taxable income – the Earned Income Credit. In 2023 the IRS is loosening those restrictions allow for a higher tax credit (up almost 7% for the highest tier). 

Here’s the new ranges and credits for 2023:

2023 Earned Income Credit (EIC) Qualification Table

Qualification Item No Children With 1 Child With 2 Children With 3+ Children
1. Max 2023 Earned Income Tax Credit Amount






2. Earned Income Base Amount required to get maximum credit






3. Phaseout Threshold Amount Begins (for Single, SS, or HoH)








4. Income (AGI) Maximum When Credit Eligibility Ends (for Single, SS, or HoH)






5. Phaseout Threshold Amount Begins (for Married Filing Jointly)
6. Income (AGI) Maximum When Credit Eligibility Ends (for Married Filing Jointly)

Taxes 2023 and Beyond

If inflation continues to spiral out of control, we may be seeing larger-than-normal credit increases in the coming years. However, regardless of the market most of these tax codes are subject to indexing anyways (indexing is the annual review that determines their increases). Because of indexing, the likelihood of these codes changing again is high, but how much is yet to be determined. 


Ashlyn Brooks

Ashlyn Brooks is a financial writer and former civil engineer. She's on a mission to show others how to save and spend smarter through purposeful money habits. Her work has been featured on,, MoneyGeek and QuickBooks