Nonprofit Resources


Key Federal Tax Figures for 2023

We are pleased to provide our annual Key Federal Tax Figures summary, which is designed to be a helpful reference tool throughout the year. You can download or print your free copy here:

Download the Table >


Please note that we updated the table to reflect the IRS high/low substitute per diem system rates effective October 1, 2023.

Several points of interest emerge from a review of the 2023 figures.


Increase in Standard Deduction

The tax reform legislation enacted in December 2017 nearly doubled the standard deduction. For 2023, the new higher amounts have increased again by an inflation adjustment. For a married couple filing a joint return, the increase is $1,800, to $27,700. Similar increases occurred for heads of households, single individuals, and married couples filing separate returns.


Automobile Mileage Rates

The tax-free mileage rate for business use of a vehicle increased to 65.5 cents per mile from 62.5 cents per mile, an increase of 3 cents per mile from the June 2022 mid-year adjusted amount, and an increase of 9.5 cents per mile from 2021.

The tax-deductible mileage rate for medical mileage remained unchanged at 22.0 cents per mile and the mileage rate for charitable mileage also remained unchanged at 14.0 cents per mile. Note that with the suspension of the moving expense deduction, there is no mileage reimbursement rate for moving mileage.


Other Inflation Adjustments for 2023 

Inflation adjustments affect many areas, but not everything. Examine the specific issues that affect your organization carefully. Some examples:

 In 2022 and Returns for 2022In 2023 and Returns for 2023
Foreign earned income exclusion$112,000$120,000
OASDI maximum wage base$147,000$160,200
Maximum annual contribution to defined
contribution plan
Maximum salary deduction for 401(k)/403(b)$20,500$22,500
401(k)/403(b) over 50 “catch-up” limit$6,500$7,500
IRA contribution limit$6,000$6,500
Maximum value of de minimis benefit2% of gift, but max. $117.002% of gift, but max. $125.00
Highly compensated employee limit$135,000$150,000
Annual gift tax exclusion amount$16,000$17,000

Please contact us with any questions. 

This resource has been updated.

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