How Inflation Can Impact Your Taxes

Inflation drives up the price of everything from gas to groceries, but IRS inflation adjustments mean that the impact of inflation on 2023 and 2024 tax brackets and some tax credits isn't all bad.

Inflated balloon surrounded by deflated balloons
(Image credit: Getty Images)

Inflation. Inflation. Inflation. You’re hearing and thinking about it a lot lately —  especially when you go to the store for “just a few items” and see a sky-high amount on your receipt. That’s because, for a while, inflation rates in the U.S. have hovered around a 40-year high. 

That means that two years ago, you paid around $1.34 for a dozen eggs. Now, a dozen eggs might cost $2.07 or more. (It wasn't that long ago when soaring egg prices meant you were paying, on average, about $3.59 for a dozen.)

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.