2023 and 2024 Tax Thresholds

The 2023 U.S. income tax filing season is fast approaching and as result, individuals should now be looking at which tax planning opportunities are available to them to reduce their upcoming tax burden.

With that in mind, we are supplying a listing of the income tax thresholds and tax brackets for the upcoming 2023 filing season as well as the 2024 tax figures recently released by the Treasury Department.

Standard Deduction

2023 FEDERAL INCOME TAX BRACKETS
(for taxes due on April 15, 2024)
Filing Status
RateSingleHead of HouseholdMarried Filing JointlyMarried Filing Separately
10%$0 to $11,000$0 to $15,700$0 to $22,000$0 to $10,275
12%$11,001 to $44,725$15,701 to $59,850$22,001 to $89,450$10,276 to $41,775
22%$44,726 to $95,375$59,851 to $95,350$89,451 to $190,750$41,776 to $89,075
24%$95,376 to $182,100$95,351 to $182,100$190,751 to $364,200$89,076 to $170,050
32%$181,101 to $231,250$182,101 to $231,250$364,201 to $462,500$170,051 to $215,950
35%$231,251 to $578,900$231,251 to $578,100$462,500 to $693,750$215,951 to $323,925
37%$578,901 or more$578,101 or more$693,751 or more$323,926 or more
2024 FEDERAL INCOME TAX BRACKETS
(for taxes due on April 15, 2025)
Filing Status
RateSingleHead of HouseholdMarried Filing JointlyMarried Filing Separately
10%$0 to $11,600$0 to $16,550$0 to $23,200$0 to $11,600
12%$11,601 to $47,150$16,551 to $63,100$23,201 to $94,300$11,601 to $47,150
22%$47,151 to $100,525$63,101 to $100,500$94,301 to $201,050$47,151 to $100,525
24%$100,526 to $191,950$100,501 to $191,950$201,051 to $383,900$100,526 to $191,950
32%$191,951 to $243,725$191,951 to $243,700$383,901 to $487,450$191,951 to $243,725
35%$243,726 to $609,350$243,701 to $609,350$487,451 to $731,200$243,726 to $365,600
37%$609,351 or more$609,351 or more$731,201 or more$365,601 or more


The standard deduction reduces your taxable income to the extent it is greater than your allowable itemized deductions. For 2023, the standard deduction is $13,850 for single filers and $27,700 for those married filing jointly. The standard deduction is $1,500 more than the table below for those that are married filing jointly and age 65 or older, or blind; and $1,850 higher if a taxpayer is unmarried or filing as head of household. Deduction amounts have been increased for inflation in 2024, as presented in the table below.

Filing StatusUnder 65 years old (2023)Age 65 and older (2023)Under 65 years old (2024)Age 65 and older (2024)
Single$13,850$15,700$14,600$16,550
Head of Household$20,800$22,650$21,900$23,850
Married Filing Jointly$27,700$29,200 for 1 or $30,700 for both$29,200$30,750 for 1 or $32,300 for both
Married Filing Separately$13,850$15,700$14,600$16,550

Retirement Plan Thresholds
For 2023 and 2024, the maximum elective deferrals for retirement plans are limited to:
Plan TypeUnder 50 years old (2023)Age 50 and older* (2023)Under 50 years old (2024)Age 50 and older* (2024)
Traditional IRA$6,500$7,500$7,000$8,000
401(k)/403(b)/457(b)$22,500$30,000$23,000$30,500
SIMPLE IRAs$15,500$19,000.00$16,000$19,500
* Not all employer plans permit additional contributions by those who are age 50 and over. Other limitations may apply.


Health Savings Accounts (HSA) and High-Deductible Health Plans

HSA (employer + employee)Annual Maximum – 2023Annual Maximum – 2024
Self-only$3,850$4,150
Family$7,750$8,300
Catch-up (over 55)$1,000
HDHP minimum deductible
Self-only$1,500$1,600
Family$3,000$3,200
HDHP maximum out of pocket
Self-only$7,500$8,050
Family$15,000$16,100
Health – Flexible Spending Accounts
Annual Contribution Max$3,050$3,200
Maximum Carryover Limit*$610$640
* There are 2 options for FSA extensions and employer can offer either or neither (but not both). Participants can carryover up to $610 of unused FSA to the next year but forfeits anything over $610 or can offer an optional grace period of two and a half months to incur new expenses using prior-year FSA funds, all unspent funds must be forfeited.


Eligible Purchases: As a reminder, HSAs, FSAs, and HRAs (health reimbursement arrangements) can now be used to pay for over-the-counter medications without a prescription as well as certain menstrual care products, such as tampons and pads.

Dependent Care – FSA

A dependent care FSA is a pretax benefit account used to pay for dependent care services such as day care, preschool, summer camps and non-employer sponsored before or after school programs. Funds are eligible for expenses relating to children under the age of thirteen or incapable of self-care who live with the account holder more than half the year.

The dependent care FSA maximum, which is set by statute and is not subject to inflation-related adjustments, is $5,000 a year for individuals or married couples filing jointly, or $2,500 for a married person filing separately. Married couples have a combined $5,000 limit, even if each has access to a separate dependent care FSA through his or her employer.

AMT Rates, Exemptions, & Phaseouts

AMT Income (2023)Tax Rate
$1 to $220,700 *26%
Over $220,701 *28%
SingleHead of HouseholdMarried Filing JointlyMarried Filing Separately
Exemption Amount$81,300$81,300$126,500$63,250
Exemption Phaseout Begins$578,150$578,150$1,156,300$578,150
* Note: Married taxpayers filing separate returns should substitute $110,350 for $220,700 in the tax rate table.
AMT Income (2024)Tax Rate
$1 to $232,600 *26%
Over $232,601 *28%
SingleHead of HouseholdMarried Filing JointlyMarried Filing Separately
Exemption Amount$85,700$85,700$133,300$66,650
Exemption Phaseout Begins$609,350$609,350$1,218,700$609,350
* Note: Married taxpayers filing separate returns should substitute $116,300 for $232,600 in the tax rate table.


Net Investment Income Tax & Additional Medicare Tax

3.8% Net Investment Income Tax (2023-2024) 0.9% Additional Medicare Payroll Tax (2023-2024)
Applies to individuals with net investment income and modified adjusted gross income over the following filing thresholds: Applies to individuals with net investment income and modified adjusted gross income over the following filing thresholds:
Single$200,000 Single$200,000
Head of Household$200,000 Head of Household$200,000
Married Filing Jointly or Qualifying Widow(er)$250,000 Married Filing Jointly or Qualifying Widow(er)$250,000
Married Filing Separately$125,000 Married Filing Separately$125,000


Net investment income (NII) includes dividends, rents, interest, passive activity income, capital gains, annuities, and royalties. Passive pass-through income is subject to the NII tax.

The NII tax does not apply to nonpassive income: Self-employment income, income from an active trade or business, portions of the gain on the sale of an active interest in a Partnership or S corporation with investment assets, or IRA or qualified plan distributions.

Estate Planning

Annual Limitations:20232024
Annual Gift Limitation$17,000$18,000
Federal Estate Exemption$12,920,000$13,610,000
WA State Estate Exemption$2,193,000$2,193,000

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