Tax Rates

Social Security

2023 Tax Rates

Social Security Tax Rate: Employers

6.2%

Social Security Tax Rate: Employees

6.2%

Social Security Tax Rate: Self-Employed

15.3%

Maximum Taxable Earnings

$160,200

Medicare Base Salary

Unlimited

Medicare Tax Rate: Employers

1.45%

Medicare Tax Rate: Employees

1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)

0.9%

Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)

3.8%

Miscellaneous

2023 Tax Rates

Business expensing limit: Cap on equipment purchases

$2,890,000

Business expensing limit: New and Used Equipment and Software

$1,160,000

Qualified Business Income threshold amount:

$182,100 (single and head of household); $364,200 (married filing joint return)

Qualified Small Employer Health Reimbursement Arrangement limit:

$5,850 (single coverage); $11,800 (family coverage)

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2022 tax liability

Standard mileage rate for business driving

65.5

Standard mileage rate for medical driving

22

Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station

22

Standard mileage rate for charitable driving

14

Child Tax Credit

$2,000

Unearned income maximum for children under 19 before kiddie tax applies

$1,250

Maximum capital gains tax rate for taxpayers with income up to $44,625 for single filers, $89,250 for married filing jointly

0%

Maximum capital gains tax rate for taxpayers with income $44,625 to $492,300 for single filers, $89,250 to $553,850 for married filing jointly

15%

Maximum capital gains tax rate for taxpayers with income above $492,300 for single filers, $553,850 for married filing jointly

20%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum contribution for Traditional/Roth IRA

$6,500 if under age 50
$7,500 if 50 or older

Maximum employee contribution to SIMPLE IRA

$15,500 if under age 50
$19,000 if 50 or older

Maximum Contribution to SEP IRA

25% of eligible compensation
up to $66,000

401(k) maximum employee contribution limit

$22,500 if under age 50
$30,000 if 50 or older

Estate tax exemption

$12,920,000

Annual Exclusion for Gifts

$17,000

Education

2023 Tax Rates

American Opportunity Credit (per student)

$2,500

Lifetime Learning Credit (per return)

$2,000

Student Loan Interest Deduction

$2,500

Coverdell Education Savings Account Contribution

$2,000

Source: IRS Revenue Procedure 2022-38

Standard Meal Rates for Family Child Care Providers for income tax returns

Continental U.S.

2022-23 Tax Rates (July 1, 2022-June 30, 2023)

For each breakfast

$1.66

For each lunch or supper

$3.04

For each snack (up to 3 per day for each child)

$0.97

Alaska

2022-23 Tax Rates (July 1, 2022-June 30, 2023)

For each breakfast

$2.59

For each lunch or supper

$4.87

For each snack (up to 3 per day for each child)

$1.52

Hawaii

2022-23 Tax Rates (July 1, 2022-June 30, 2023)

For each breakfast

$1.91

For each lunch or supper

$3.55

For each snack (up to 3 per day for each child)

$1.12

Source: Federal Register