2023 Saver's Credit Income Limit
For 2023, the Saver's Credit Income Limit figures are $43,500 (Maximum AGI for the 50% credit rate, married taxpayers filing a joint return), $47,500 (Maximum AGI for the 20% credit rate, married taxpayers filing a joint return), $73,000 (Maximum AGI for the 10% credit rate, married taxpayers filing a joint return) and 10 more figures below.
| Item | Married taxpayers filing a joint return | Taxpayers filing as head of household | All other taxpayers |
|---|---|---|---|
| Maximum AGI for the 50% credit rate | $43,500 | $32,625 | $21,750 |
| Maximum AGI for the 20% credit rate | $47,500 | $35,625 | $23,750 |
| Maximum AGI for the 10% credit rate | $73,000 | $54,750 | $36,500 |
Effective 2023-01-01Source: Notice 2022-55 (IRS)Verified 2026-09-03
Highest-tier applicable percentage, Middle-tier applicable percentage, Lowest non-zero-tier applicable percentageSource: United States Code (2023 edition), Title 26 Section 25B (Office of the Law Revision Counsel)Verified 2026-09-03
Maximum eligible contribution per personSource: Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)Verified 2026-09-03
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Maximum AGI for the 50% credit rate, married taxpayers filing a joint return | $41,000 | $43,500 | +$2,500 (+6.1%) |
| Maximum AGI for the 20% credit rate, married taxpayers filing a joint return | $44,000 | $47,500 | +$3,500 (+8.0%) |
| Maximum AGI for the 10% credit rate, married taxpayers filing a joint return | $68,000 | $73,000 | +$5,000 (+7.4%) |
| Maximum AGI for the 50% credit rate, taxpayers filing as head of household | $30,750 | $32,625 | +$1,875 (+6.1%) |
| Maximum AGI for the 20% credit rate, taxpayers filing as head of household | $33,000 | $35,625 | +$2,625 (+8.0%) |
| Maximum AGI for the 10% credit rate, taxpayers filing as head of household | $51,000 | $54,750 | +$3,750 (+7.4%) |
| Maximum AGI for the 50% credit rate, all other taxpayers | $20,500 | $21,750 | +$1,250 (+6.1%) |
| Maximum AGI for the 20% credit rate, all other taxpayers | $22,000 | $23,750 | +$1,750 (+8.0%) |
| Maximum AGI for the 10% credit rate, all other taxpayers | $34,000 | $36,500 | +$2,500 (+7.4%) |
| Highest-tier applicable percentage | 50% | 50% | +0% (+0.0%) |
| Middle-tier applicable percentage | 20% | 20% | +0% (+0.0%) |
| Lowest non-zero-tier applicable percentage | 10% | 10% | +0% (+0.0%) |
| Maximum eligible contribution per person | $2,000 | $2,000 | +$0 (+0.0%) |
Maximum AGI for the 50% credit rate
Maximum AGI for the 20% credit rate
Maximum AGI for the 10% credit rate
$21,750$73,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers who make qualified retirement contributions and wish to claim the Saver's Credit (Retirement Savings Contributions Credit) under section 25B of the Internal Revenue Code for the 2023 tax year.
What changed this year, and why
For 2023, the IRS adjusted the income limits for the Retirement Savings Contributions Credit (Saver's Credit). A taxpayer whose adjusted gross income exceeds the applicable limit cannot claim the credit. For married taxpayers filing a joint return, the maximum adjusted gross income is $73,000. For taxpayers filing as head of household, the maximum adjusted gross income is $54,750. For all other taxpayers, the maximum adjusted gross income is $36,500.
Common questions
- What is the Saver's Credit income limit for married couples filing jointly in 2023?
- The maximum adjusted gross income for married taxpayers filing a joint return is $73,000 for 2023.
- What is the Saver's Credit income limit for head of household filers in 2023?
- The maximum adjusted gross income for taxpayers filing as head of household is $54,750 for 2023.
- What is the Saver's Credit income limit for single filers in 2023?
- The maximum adjusted gross income for all other taxpayers (including single filers) is $36,500 for 2023.
Every amount on this page is a published figure rather than yours. The Saver's Credit calculator for a joint return takes the number you enter and works it out against them, showing which published figure it used.
Three things that disqualify you even under the income limit
Even if your income is below the limit, you cannot claim the Saver's Credit if any of three conditions apply to you. First, you were born after January 1, 2006, meaning you are too young to qualify. Second, you are claimed as a dependent on someone else's 2023 tax return, so you are not considered an independent taxpayer for purposes of this credit. Third, you were a student during the tax year, as defined in the instructions. These disqualifications apply to the person who made the qualified contribution or elective deferral. For married couples filing jointly, the credit is computed separately for each spouse, so if one spouse is disqualified, only the other spouse's contributions may count. The rules ensure the credit targets independent, non-student taxpayers who are saving for retirement.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2006; (b) is claimed as a dependent on someone else’s 2023 tax return; or (c) was a student (see instructions).
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
The credit rate drops in steps as your adjusted gross income rises, with thresholds that differ by filing status. The form provides a rate table where you look up the bracket containing your income and read off the applicable decimal amount. For single filers, the rate begins at the highest level for income up to $21,750, then steps down to lower rates at $23,750, $32,625, and $35,625, reaching zero at $36,500. For head-of-household filers, the thresholds are higher: $43,500, $47,500, and $54,750. For married couples filing jointly, the brackets extend to $43,500, $47,500, $54,750, and $73,000. Once your income exceeds the top threshold for your filing status - $36,500 for single, $54,750 for head of household, or $73,000 for married filing jointly - the applicable decimal amount is zero and no credit is available. The decimal you find is multiplied by your eligible contributions to produce the preliminary credit amount before the tax-liability cap is applied.
9 Enter the applicable decimal amount from the table below. If line 8 is— Over— But not over— And your filing status is— Married filing jointly Head of household Enter on line 9— Single, Married filing separately, or Qualifying surviving spouse --- $21,750 0.5 0.5 0.5 $21,750 $23,750 0.5 0.5 0.2 $23,750 $32,625 0.5 0.5 0.1 $32,625 $35,625 0.5 0.2 0.1 $35,625 $36,500 0.5 0.1 0.1 $36,500 $43,500 0.5 0.1 0.0 $43,500 $47,500 0.2 0.1 0.0 $47,500 $54,750 0.1 0.1 0.0 $54,750 $73,000 0.1 0.0 0.0 $73,000 --- 0.0 0.0 0.0
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
Even if you made substantial retirement contributions during 2023, only a limited amount counts toward the Saver's Credit. For each person on the return, the form requires you to take the smaller of line 5 or $2,000. Line 5 represents your total qualified contributions minus any recent distributions you received. So even if your contributions total far more than $2,000, only $2,000 of contributions per person can be used to calculate the credit. For married couples filing jointly, each spouse gets their own $2,000 limit in their respective column. This cap means that very large retirement contributions do not increase the credit beyond what the $2,000 per-person limit produces. The applicable credit rate is then applied to this capped amount to determine your final credit. Rollover contributions do not count toward the contribution total on line 1 or line 2, so only new contributions are considered for the credit calculation.
In each column, enter the smaller of line 5 or $2,000 .
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you took withdrawals from retirement accounts after 2020 and before the due date of your 2023 tax return, those distributions reduce the contributions you can count toward the credit. The form asks you to report certain distributions received during this period on line 4. These distributions are then subtracted from your total contributions to arrive at the amount on line 5. This adjustment prevents taxpayers from taking money out of retirement accounts while still claiming a credit for new contributions. For married couples filing jointly, both spouses' distribution amounts must be included in the calculation. The rule applies to distributions from IRAs, employer retirement plans, and similar accounts. After making this subtraction, if the result is zero or less, no contributions remain to count toward the credit. The reduced amount is then subject to the per-person cap before the credit rate is applied. This look-back rule discourages using retirement accounts as short-term savings vehicles while still claiming the Saver's Credit on your 2023 return.
Certain distributions received after 2020 and before the due date (including extensions) of your 2023 tax return (see instructions). If married filing jointly, include both spouses’ amounts in both columns. See instructions for an exception . . . 4
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit is nonrefundable, meaning it cannot reduce your tax liability below zero. After calculating the preliminary credit amount by multiplying your eligible contributions by the applicable rate, the form requires you to compare it against your actual tax liability using the Credit Limit Worksheet in the instructions. Line 11 asks you to enter the amount from that worksheet. The final credit on line 12 is the smaller of the calculated credit or the tax limitation amount. This means if your tax liability is less than the credit you would otherwise receive, the credit is reduced to match what you owe. The nonrefundable nature of the credit ensures it provides tax relief rather than creating a refund exceeding taxes paid. Taxpayers with very low tax liability may not benefit fully from the credit even if they meet all other requirements and have substantial retirement contributions. The limitation applies after all other calculations are complete, making it the final step in determining the actual credit amount you can claim.
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions 11
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
Being a student for even part of five months can disqualify you
The Saver's Credit is unavailable to anyone who was a student during any part of five calendar months in 2023. A person counts as a student if they were enrolled full-time at a school or took a full-time on-farm training course offered by a school or a state, county, or local government agency. Schools include technical, trade, and mechanical schools but do not include on-the-job training, correspondence schools, or schools offering courses only online. This means that even brief full-time enrollment can trigger the disqualification. If you were a full-time student for any portion of five months during the year, you cannot claim the credit, regardless of your income level or contribution amount.
You were a student if during any part of 5 calendar months of 2023 you:
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
The form used, and where the credit lands on your return
For 2023, the Saver's Credit is computed on Form 8880, which the IRS requires taxpayers to attach to their Form 1040, 1040-SR, or 1040-NR. The form walks you through the calculation and then directs you to carry the final credit amount to Schedule 3 (Form 1040), line 4, where nonrefundable credits are totaled. This means the credit does not appear directly on the main 1040 form; instead it passes through Schedule 3 first. The credit is available only if your adjusted gross income falls within the published limits: $36,500 for single filers, $54,750 for head of household, or $73,000 for married couples filing jointly. Taxpayers whose income exceeds the ceiling for their filing status cannot claim the credit at all.
12 Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here and on Schedule 3 (Form 1040), line 4 . . . . . . . . . . . . . . . . . . . . . 12
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
This credit stacks on top of the separate IRA deduction
The Saver's Credit is separate from, and can be taken in addition to, the traditional IRA deduction. Taxpayers who contribute to a traditional IRA may deduct those contributions on Schedule 1 (Form 1040), line 20, if they meet the income and workplace-plan requirements for the IRA deduction. At the same time, those same contributions can generate a Saver's Credit on Form 8880, which reduces tax liability dollar for dollar. The two benefits are calculated independently and do not reduce each other. For 2023, the income limits for the Saver's Credit are $36,500 for single filers, $54,750 for head of household, and $73,000 for married couples filing jointly. Taxpayers whose income falls within these limits can claim both the IRA deduction and the Saver's Credit on the same contributions, effectively receiving a double tax benefit from a single retirement contribution.
This credit can be claimed in addition to any IRA deduction claimed on Schedule 1 (Form 1040), line 20.
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2022-55 (IRS)
- Maximum AGI for the 50% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $41,000 to $43,500; the limitation under section 25B(b)(1)(B) is increased from $44,000 to $47,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $68,000 to $73,000.
- Maximum AGI for the 20% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $41,000 to $43,500; the limitation under section 25B(b)(1)(B) is increased from $44,000 to $47,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $68,000 to $73,000.
- Maximum AGI for the 10% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $41,000 to $43,500; the limitation under section 25B(b)(1)(B) is increased from $44,000 to $47,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $68,000 to $73,000.
- Maximum AGI for the 50% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $30,750 to $32,625; the limitation under section 25B(b)(1)(B) is increased from $33,000 to $35,625; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $51,000 to $54,750.
- Maximum AGI for the 20% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $30,750 to $32,625; the limitation under section 25B(b)(1)(B) is increased from $33,000 to $35,625; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $51,000 to $54,750.
- Maximum AGI for the 10% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $30,750 to $32,625; the limitation under section 25B(b)(1)(B) is increased from $33,000 to $35,625; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $51,000 to $54,750.
- Maximum AGI for the 50% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $20,500 to $21,750; the limitation under section 25B(b)(1)(B) is increased from $22,000 to $23,750; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $34,000 to $36,500.
- Maximum AGI for the 20% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $20,500 to $21,750; the limitation under section 25B(b)(1)(B) is increased from $22,000 to $23,750; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $34,000 to $36,500.
- Maximum AGI for the 10% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $20,500 to $21,750; the limitation under section 25B(b)(1)(B) is increased from $22,000 to $23,750; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $34,000 to $36,500.
United States Code (2023 edition), Title 26 Section 25B (Office of the Law Revision Counsel)
- Highest-tier applicable percentage
if the adjusted gross income of the tax- payer is not over $30,000, 50 percent,
- Middle-tier applicable percentage
if the adjusted gross income of the tax- payer is over $30,000 but not over $32,500, 20 percent,
- Lowest non-zero-tier applicable percentage
if the adjusted gross income of the tax- payer is over $32,500 but not over $50,000, 10 percent,
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
- Maximum eligible contribution per person
In each column, enter the smaller of line 5 or $2,000