The Internal Revenue Service (IRS) announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions via IR-2022-182 Press Release titled “IRS provides tax inflation adjustments for tax year 2023” (a.k.a. IRS Revenue Procedures 2022-38).

The three provisions that may impact Raleigh homebuyers and homeowners are the ‘Standard Deduction’, ‘Gift Tax Exclusion’ and ‘Marginal Tax Brackets’.

Standard Deduction

For taxable year beginning 2023, the standard deductions changing:

$27,700 is the new 2023 standard deduction for a married couple filing jointly for 2023. This is up from $25,900 in 2022.

The new 2023 standard deduction for heads of households will be $20,800. This is up from $19,400 in 2022.

For single tax payers and married individuals filing separately, the new 2023 standard deduction is $13,850. In 2022 this was $12,950

Gift Tax Exclusion

$17,000 will be the annual gift exclusion in 2023. In 2022 it was $16,000.

Marginal Tax Brackets

• 37%: for incomes greater than $578,125 ($693,750 for married couples filing jointly)
• 35%: for incomes over $231,250 ($462,500 for married couples filing jointly)
• 32%: for incomes over $182,100 ($364,200  for married couples filing jointly)
• 24%: for incomes over $95,375 ($190,750  for married couples filing jointly)
• 22%: for incomes over $44,725 ($89,450  for married couples filing jointly)
• 12%: for incomes over $11,000  ($22,000  for married couples filing jointly)
• 10%: for incomes of $11,000 or less ($22,000 for married couples filing jointly)

Calculate Your After Tax Cost Of Your Raleigh Mortgage

PLEASE NOTE: THIS OVERVIEW IS PROVIDED BY THE MARTINI MORTGAGE GROUP FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2022-38.