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2023 Tax Fast Facts

Tax rates and retirement guidelines

Federal Income Tax Rates for 2023

Married Filing Jointly

TAXABLE INCOME

TAX RATE

$0.00+

10%

$22,000.00+

12%

$89,450.00+

22%

$190,750.00+

24%

$364,200+

32%

$462,500.00+

35%

$693,750.00+

37%

Single

TAXABLE INCOME

TAX RATE

$0.00+

10%

$11,000.00+

12%

$44,725.00+

22%

$95,375.00+

24%

$182,100.00+

32%

$231,250.00+

35%

$578,125.00+

37%

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Capital Gains Rates

Short Term

TAX BRACKET

ASSET HOLDING PERIOD RATE

10%

10%

12%

12%

22%

22%

24%

24%

32%

32%

35%

35%

37%

37%

Long Term

ASSET HOLDING PERIOD RATE

MARRIED FILING JOINTLY*

SINGLE*

0%

$0 to $89,249

$0 to $44,624

15%

$89,250 to $553,849

$40,625 to $492,299

20%

More than $553,850

More than  $492,300

IRA and Retirement Plan Limits for 2023

Maximum IRA Contributions

The amount you can contribute to all of your Traditional and Roth IRAs combined is 100% of your taxable compensation,¹ up to a maximum of:

Under age 50

$6,500

Age 50 or older

$7,500



Maximum Retirement Plan Contributions

The maximum amount you can contribute to an employer-sponsored retirement plan; generally is the lesser of 100% of your salary or:

Annual Contribution Limits

Annual Catch-Up Contribution Limits (age 50 or older)

401(k) and 403(b)

$22,500

$7,500

SIMPLE-IRA

$15,500

$3,500

A woman and a child looking at a snail.

Phaseouts

Deductible Traditional IRA Phaseouts

Deductibility depends on MAGI and whether you or your spouse is covered by an employer-sponsored retirement plan. You must figure your deduction and your spouse's deduction separately. The deduction for contributions to traditional IRAs phases out over the following MAGI levels:

Covered by Employer Plan

Not Covered by Employer Plan

Single

Single or Married Filing Jointly with a Spouse Who is Also Not Covered

AGI Level

$73,000-$83,000

No Limit

Married Filing Jointly

Married Filing Jointly with a Spouse Who is Covered

AGI Level

$116,000-$136,000

$218,000-$228,000


There is no income limit for contributions to a non-deductible traditional IRA.

Roth IRA Eligibility Phaseouts

Eligibility for Roth IRAs is phased out over the following MAGI levels:

Single

Married Filing Jointly

Married Filing Separately

AGI Level

$138,000-$153,000

$218,000-$228,000

$0-$10,000

A 2023 calendar.

Estate and Gift Tax Exemptions for 2023

  • Estate Tax Exempt Amount: $12.92 Million*

  • Gift Tax Exempt Amount: $12.92 Million*

  • Gift Tax Annual Exclusion Amount: $17,000*

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Exception for Married Filing Jointly: An employed spouse may contribute to a separate IRA on behalf of a spouse who has little or no income. The amount of the couple’s combined contributions can’t be more than the taxable compensation reported on their joint return. For more information, refer to Spousal IRA sections in IRA Publication 590-A.

Could increase due to inflation adjustment. Source: Internal Revenue Service.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.