16 Income Tax Changes Coming in 2023

Higher-income brackets

Income tax brackets also have a tendency to rise annually. For 2022, the income brackets are in the following way (for those who are single):

• 10% tax rate: applies to taxable income as much as $10,275 – up from $9,950 for 2021
• 12%: more than $10,275 – and up from $9,950
• 22%: more than $41,775 – and up from $40,525
• 24%: over $89,075 – and up from $86,375
• 32%: more than $170,050 – and up from $164,925
• 35%: more than $215,950 – and up from $209,425
• 37%: more than $539,900 – and up from $523,600

Higher contribution limits for a couple of retirement accounts

For the 2022 tax year, you might want to save more money in five different types of workplace retirement accounts, which are 401(k) plans, 403(b) plans, most 457 plans, thrift savings plans, and savings incentive match plans for employees.

The base contribution limit for 401(k) plans is $20,500 and up from $19,500 for 2021.