Thank you, Ronald Reagan: Inflation forces record upward adjustment in IRS brackets, standard deduction

The Internal Revenue Service (IRS) increased the individual tax deductible for 2023 at the highest rate in more than 35 years due to inflation.

Individual tax deductibles increased by $900 to $13,850, up $1,800 to $27,700 for married couples filing jointly, a roughly 7% increase compared to tax year 2022, the IRS announced Tuesday. This increase is the largest hike since 1985, when tax brackets were first tied to inflation, The Washington Post reported. (RELATED: Inflation Stays Sky-High As Core Prices Soar Above Expectations)

In general, tax brackets also rose by roughly 7%, with the minimum income for the top rate of 37% skyrocketing from $539,900 to $578,125, according to the IRS. The lowest bracket of 10% now applies to all individuals earning $11,000 or less, up from $10,275 in tax year 2022.

[Thank the Lord for Ronald Reagan and his fight to index IRS tax brackets and deduction levels. Many people may not remember what a fight that was at the time. — Ed]