--- title: Business Tax Limits Have Increased For 2023 description: CRR's Brian Shoer advises businesses on the tax limits that have increased for 2023. image: https://www.crradvisors.com/hubfs/AdobeStock_562654461.jpeg --- [Skip to content](https://www.crradvisors.com/blog/business-tax-limits-have-increased-for-2023#main-content) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg)Homepage](https://www.crradvisors.com) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) ![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_562654461.jpeg?width=7936&height=5291&name=AdobeStock_562654461.jpeg) Tax Business Advisory Small Business # Business Tax Limits Have Increased For 2023 ![Brian Shoer](https://www.crradvisors.com/hs-fs/hubfs/Images/Company_Photos/Headshots/Shoer_Brian.jpg?width=48&height=48&name=Shoer_Brian.jpg) Brian Shoer February 20, 2023 An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. ###### **Social Security tax** The amount of employees’ earnings that are subject to Social Security tax is capped for 2023 at $160,200 (up from $147,000 for 2022). ###### **Deductions** - Section 179 expensing: - Limit: $1.16 million (up from $1.08 million) - Phaseout: $2.89 million (up from $2.7 million) - Income-based phase-out for certain limits on the Sec. 199A qualified business income deduction begins at: - Married filing jointly: $364,200 (up from $340,100) - Other filers: $182,100 (up from $170,050) ###### **Retirement plans** - Employee contributions to 401(k) plans: $22,500 (up from $20,500) - Catch-up contributions to 401(k) plans: $7,500 (up from $6,500) - Employee contributions to SIMPLEs: $15,500 (up from $14,000) - Catch-up contributions to SIMPLEs: $3,500 (up from $3,000) - Combined employer/employee contributions to defined contribution plans (not including catch-ups): $66,000 (up from $61,000) - Maximum compensation used to determine contributions: $330,000 (up from $305,000) - Annual benefit for defined benefit plans: $265,000 (up from $245,000) - Compensation defining a highly compensated employee: $150,000 (up from $135,000) - Compensation defining a “key” employee: $215,000 (up from $200,000) ###### **Other employee benefits** - Qualified transportation fringe-benefits employee income exclusion: $300 per month (up from $280) - Health Savings Account contributions: - Individual coverage: $3,850 (up from $3,650) - Family coverage: $7,750 (up from $7,300) - Catch-up contribution: $1,000 (no change) - Flexible Spending Account contributions: - Health care: $3,050 (up from $2,850) - Dependent care: $5,000 (no change) These are only some of the tax limits and deductions that may affect your business and additional rules may apply. If you have questions, leave a comment below or feel free to contact me directly. 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