Note, that the 2023 figures below are the amounts applicable to the income earned during 2023 and paid in 2024 when you file your taxes.Tax rates and brackets 2012 Tax rates and brackets 2023Įxcept Nova Scotia and Prince Edwards Island all other provinces and territories indexed their tax brackets and basic personal amounts for 2023 tax year.
The inflation adjustment factor for 2023 was 7% for example, raising income thresholds applied to the tax brackets across the board.īelow are the 2021-2023 tables for personal income tax rates. There were no structural changes to the tax brackets in any of the periods, so the only impact are increases year-over-year due to the inflation indexing. The brackets are adjusted using the chained Consumer Price Index (CPI). Over the 3-year period shown below, there are seven brackets with progressive rates ranging from 10% up to 37% and they are the same overall years.įederal income tax rate brackets are indexed for inflation. This way you can not only see the tax brackets that apply 2023 taxable income, but the trend changes over time. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.īelow are comparative tables for the taxable years 2021 – 2023.
In other words, someone in the 32% marginal rate bracket will pay 10% on part of their income, 12% on another part, then 22% on another band of income, 24% on the next tranche and finally, 32% on everything else. Tax brackets work so that you pay part of your income at each level bracket as you move-up in income. Which bracket you are in depends on your taxable income however, your bracket does not equal your tax rate.
For the years 2021-2023 there are seven different brackets for each year (2020 was the same structure as well). The US tax system is progressive, meaning that the more you earn the more you pay.