Inflation could mean lower tax bills as IRS raises brackets

The IRS may have just lowered your taxes.
IRS


The Daily Navigator strives to help you make the best decisions in travel. While we produce content according with strict editorial integrity this post may contain references to partner products. Here’s a full explanation for how our team makes money .

Inflation is hitting Americans where it hurts — their wallets and emotional well-being as they try to keep up with the rising cost of living. 

Despite this surge, there is one sliver of a silver lining: some taxpayers will be able to keep more money in 2023 thanks to the IRS’ adjusted tax brackets and increased deductions, designed to counter heavy inflation on groceries, gas, and other staple daily life expenses. 

The IRS announced Tuesday that tax brackets will increase by about 7%, resulting in lower brackets for Americans whose wages haven’t followed inflation, ultimately owning less when they file. 

For married couples, the standard deduction will increase to $27,700, up $1,800 from last year. As for single filers, it will be $13,850, an increase of $900. This is a significant increase over the previous year’s standard deduction hikes, which were $800 for married filers and $400 for singles. 

Standard deductions for Heads of Household will increase by $1,400 to $20,800 for the 2023 tax year.

Editorial Disclaimer: Opinions expressed here are the author’s alone. This post contains references to products from one or more of our partners and we may receive compensation when you click on links to those products.

Navigate the News Better

Take a five-minute trip through the news that matters most to travelers with our daily newsletter.

Related Stories

Built with ❤️ by travelers, for travelers.

© 2024 Dollar Flight Club Inc. All Rights Reserved

Stay in the know with
The Navigator Newsletter

A five-minute trip through the news that matters most to travelers. Past Edition

A five-minute trip through the news that matters most to travelers. Past Edition

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. The relationship may impact how an offer is being presented. Our site doesn’t include all the offers available. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

DFC Partner Perks App Link Image
Special Discounts for Our Members

Save Big with Perks

Get $5,000+ in immediate travel savings with Perks. Unlock next level travel benefits, for life. Get discounts from the world’s best travel brands you won’t find anywhere else. No credit required.

DFC Concierge App Link Image
Special Discount for Our Members

93% off lifetime access

Save $1,200 and 10 hours of your time on every vacation. With Lifetime access to DFC Concierge, get fully customized trip itineraries to make every vacation unforgettable.

Dollar Flight Club App Link Image
Special Discount for Our Members

50% Off PREMIUM

You can save up to $500 on your next adventure without lifting a finger get email alerts when we find flights up to 90% off leaving your home airport. Just let us know your departure airport and we’ll do the rest.

The Navigator Commitment

The Daily Navigator is the cornerstone of the DFC Media family. Through each of our brands, we’re dedicated to helping our readers travel, spend, and live smarter.

With products dedicated to affordable travel, daily news, hospitality, and personal finance, we deliver the day’s essential content with none of the filler — all in a way that’s fast, easy, and fun to read. Every morning, over 2 Million travelers trust DFC to deliver the latest news and information so that they can make informed decisions faster. We hope you’ll join them.

We’re happy to have you here!