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%

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 a 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

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

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