2023 Tax Tables

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Income Tax

Married/Filing Jointly or Qualifying Widow(er)s

Single

Estates and trusts

Tax on corporations and other businesses

• 21% tax rate applied on C-corporation income
• Taxpayers may generally deduct up to 20% of the qualified business income (QBI) of S corporations, partnerships, and sole proprietorships (reduced by net capital gain and qualified dividends), subject to limitations:
  • Deduction generally not available for a Specified Service Trade or Business (SSTB) if taxable income exceeds $232,100 (single) or $464,200 (married/filing jointly)
    • The deduction is subject to a phaseout unless taxable income is at or below $182,100 (single) or $364,200 (married/filing jointly)
  • If taxable income exceeds $232,100 (single) or $464,200 (married/filing jointly), the deduction is limited to the lesser of:
    • 20% of QBI or
    • The greater of
      • 50% of W-2 wages paid by each business or
      • 25% of W-2 wages paid by each business plus 2.5% of the unadjusted basis of qualified property
  • Wage and qualified property limitations are not applicable to taxable incomes at or below $182,100 (single) or $364,200 (married/filing jointly) and are fully phased in once taxable income exceeds $232,100 (single) or $464,200 (married/filing jointly)

  Employer retirement plans

  Maximum elective deferral to retirement plans, e.g., 401(k), 403(b)	$22,500
  Catch-up contribution limit for 401(k), 403(b), and 457 plans	$7,500
  Maximum elective deferral to SIMPLE IRA plans	$15,500
  Catch-up contribution limit for SIMPLE plans	$3,500
  Maximum elective deferral to 457 plans of gov't and tax-exempt employers	$22,500
  Limit on annual additions to defined contribution plans	$66,000
  Annual compensation threshold requiring SEP contribution	$750
  Limit on annual additions to SEP plans	$66,000
  Maximum annual compensation taken into account for contributions	$330,000
  Annual benefit limit under defined benefit plans	$265,000
  Used in definition of highly compensated employee	$150,000
  Health flexible spending account maximum salary reduction contribution	$3,050

   

  Tax on capital gains and qualified dividends

  Single	Married/Filing jointly/Qualifying widow(er)	Tax rate
  $0 - $44,625	$0 - $89,250	0%
  Over $44,625 but not over $492,300	Over $89,250 but not over $553,850	15%
  Over $492,300	Over $553,850	20%

  Additional 3.8% federal net investment income (NII) tax applies to individuals on the lesser of NII or modified AGI in excess of $200,000 (single) or $250,000 (married/filing jointly and qualifying widow(er)s). Also applies to any trust or estate on the lesser of undistributed NII or AGI in excess of the dollar amount at which the estate/trust pays income taxes at the highest rate ($14,450).

  Kiddie Tax*

  Child's unearned income above $2,500 is generally subject to taxation at the parent's marginal tax rate; unearned income above $1,250 but not more than $2,500 is taxed at the child's tax rate.

  * Applies if either parent of the child is alive at the close of the taxable year, the child does not file a joint return for the taxable year, and the child either:

  • has not attained age 18 by close of the year
  • has attained age 18 before the close of the year, but the child's earned income represents not more than one half of support needs and the child has not attained age 19 by the close of the year, or
  • the child is a full-time student who has not attained age 24 as of the close of the year and the child's earned income represents not more than one half of support needs.

  Preferential rates on long-term capital gains and qualified dividends are applicable; 3.8% federal NII tax is imposed separately on each child if modified AGI exceeds threshold amount stated above.
   

  Child tax credit

  • $2,000 per "qualifying child" (who has not attained age 17 during the year); phased out as income exceeds $400,000 (married/filingjointly) or $200,000 (all other); $1,600 per child is refundable
  • $500 nonrefundable credit for qualified dependents other than qualifying children (with some modified AGI phaseouts)

  Standard deductions

  Filing Status	Annual	Additional age 65+ or blind
  Married/Filing jointly and qualifying widow(er)s	$27,700	$1,500
  Single	$13,850	$1,850

   

  Health savings accounts contribution limits

  Filing Status	Limit
  Individual	$3,850
  Family	$7,750

  Catch-up contribution: Taxpayers who are 55 or older in 2023 may contribute an additional $1,000, or a total of $4,850 for individuals and $8,750 for families.

  Deduction for mortgage interest

  Deduction on interest for qualifying mortgages up to $750,000 ($375,000 if married/filing separately); homes under agreement before 12/15/17 for purchase prior to 1/1/18 (provided purchase occurred by 4/1/18) grandfathered under previous $1,000,000 ($500,000 if married/filing separately) limits. Interest on home equity lines of credit (HELOC) deductible in certain cases where proceeds are utilized to acquire or improve a residence.

  Deduction for state and local taxes

  Individuals may deduct state and local income (or sales) taxes and real and personal property taxes up to $10,000 ($5,000 if married filing separately) in the aggregate.

  
  Maximum Qualified Long-Term-Care insurance premiums eligible for deduction

  Age	40 or less	>40, ≤50	>50, ≤60	>60, ≤70	Over 70
  	$480	$890	$1,790	$4,770	$5,960

   

  Traditional IRAs

  Maximum annual contribution

  • Lesser of compensation or $6,500
  • Up to $6,500 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000

  Traditional IRA deductibility table

  Filing Status	Covered by employer's retirement plan	Modified AGI 2023	Modified AGI 2022	Deductibility
  Single	No	Any amount	Any amount	Full
  	Yes	$73,000 or less	$68,000 or less	Full
  	Yes	$73,001 - $82,999	$68,001 - $77,999	Partial
  	Yes	$83,000 or more	$78,000 or more	None
  Married/Jointly	Neither spouse covered	Any amount	Any amount	Full
  Married/Jointly	Both spouses covered	$116,000 or less	$109,000 or less	Full
  		$116,001 - $135,999	$109,001 - $128,999	Partial
  		$136,000 or more	$129,000 or more	None
  Married/Jointly	Yes, but spouse is not covered	$116,000 or less	$109,000 or less	Full
  		$116,001 - $135,999	$109,001 - $128,999	Partial
  		$136,000 or more	$129,000 or more	None
  Married/Jointly	No, but spouse is covered	$218,000 or less	$204,000 or less	Full
  		$218,001 - $227,999	$204,001 - $213,999	Partial
  		$228,000 or more	$214,000 or more	None

   

  Roth IRAs

  Maximum annual contribution

  • Lesser of compensation or $6,500
  • Up to $6,500 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000

  Contribution eligibility

  Modified AGI is less than $138,000 (single) or $218,000 (married/filing jointly); phaseouts apply if modified AGI is $138,000 - $152,999 (single) or $218,000 - $227,999 (married/filing jointly).

  Deductibility

  Contributions to Roth IRAs are not deductible.

  Conversion eligibility

  There is no income restriction on eligibility for a Roth IRA conversion.

  Social Security Benefit

  Base amount of modified AGI causing Social Security benefits to be taxable

  Filing Status	Up to 50% taxable	Up to 85% taxable
  Married/Filing jointly	$32,001 - $44,000	>$44,000
  Single	$25,001 - $34,000	>$34,000

   

  Maximum earnings before Social Security benefits are reduced

  Under full retirement age ($1 withheld for every $2 above limit)	$21,240
  Full retirement age and over	No limit*

  * Interim annual limit of $56,520 applies for months prior to attaining full retirement age during year individual reaches full retirement age ($1 withheld for every $3 above limit).

   

  Maximum compensation subject to FICA taxes

  OASDI (Soc. Sec.) maximum	$160,200
  HI (Medicare) maximum	No limit

  OASDI and HI tax rate: 12.4% OASDI and 2.9% HI (15.3% combined) for self- employed; 6.2% and 1.45% (7.65% combined) for employees. An additional 0.9% HI tax applies on individuals with wages or self-employment income in excess of $200,000 (single and qualifying widow(er)s) or $250,000 (married/ filing jointly).
   

  Death/gifts occurring in 2023*

  (Subtract applicable credit from calculated tax.)

  If gift/gross is over	But not over	The tax is	Of the amount over
  $0	$10,000	$0 + 18%	$0
  $10,000	$20,000	$1,800 + 20%	$10,000
  $20,000	$40,000	$3,800 + 22%	$20,000
  $40,000	$60,000	$8,200 + 24%	$40,000
  $60,000	$80,000	$13,000 + 26%	$60,000
  $80,000	$100,000	$18,200 + 28%	$80,000
  $100,000	$150,000	$23,800 + 30%	$100,000
  $150,000	$250,000	$38,800 + 32%	$150,000
  $250,000	$500,000	$70,800 + 34%	$250,000
  $500,000	$750,000	$155,800 + 37%	$500,000
  $750,000	$1,000,000	$248,300 + 39%	$750,000
  $1,000,000	-	$345,800 + 40%	$1,000,000

  * Annual gift tax exclusion: individual, $17,000; married electing split gifts, $34,000.

  Combined lifetime gift tax and gross estate tax exemption: $12,920,000
  GST tax exemption: $12,920,000

  Higher education tax credits

  Modified AGI phaseouts for American Opportunity Tax Credit

  Married/Filing jointly	$160,001 - $179,999
  Others	$80,001 - $89,999

   

  AGI phaseouts for Lifetime Learning Credit

  Married/Filing jointly	$160,001 - $179,999
  Single	$80,001 - $89,999

   

  AMT exemptions

  Single	$81,300
  Married/Filing jointly and qualifying widow(er)s	$126,500

  Phases out beginning with alternative minimum taxable income over $1,156,300 (married/filing jointly and qualifying widow(er)s) or $578,150 (single filers); AMT ordinary income rate increases from 26% to 28% for alternative minimum taxable income over $220,700 (married/filing jointly and qualifying widow(er)s, single, and estates and trusts).

Sources: IRS and Social Security Administration updates 2023. The above information is provided by Putnam Investments. This information is general in nature and is not meant as tax or legal advice. Tax laws are subject to change. Please consult your legal or tax advisor.