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TAX SEASON 2024

Tax season 2024: what are the federal tax brackets for this year?

While the percentage of tax per bracket remains the same as last year, inflation means the amounts in these brackets has changed.

The 2024 IRS income tax brackets

Every year the Internal Revenue Service (IRS) adjusts the earnings amounts for each of the tax brackets to account for inflation during the year.

The seven brackets remain the same next year 10%, 12%, 22%, 24%, 32%, 35% and 37% which were set after the 2017 Tax Cuts and Jobs Act. These will be in place through the 2025 fiscal year, after which time, with no Congressional action, the tax rate will increase for all except the lowest.

The annual adjustment is designed to avoid “bracket creep” when people are pushed into a higher income bracket or inflation reduces the value of other deductions or credits. So, for example instead of 10% being applied to the first $11,000 of income as in 2023, it will now be applied to the first $11,600 for a taxpayer filing individually in 2024.

Tax rateSingle filers & Married Filing SeperatelyMarried filing jointlyHead of household
37%for incomes over $609,350for incomes over $731,200for incomes over $609,350
35%for incomes $243,725 to $609,350for incomes $487,450 to $731,200for incomes $243,700 to $609,350
32%for incomes $191,950 to $243,725for incomes $383,900 to $487,450for incomes $191,950 to $243,700
24%for incomes $100,525 to $191,950for incomes $201,050 to $383,900for incomes $100,500 to $191,950
22%for incomes $47,150 to $100,525for incomes $94,300 to $201,050for incomes $63,100 to $100,500
12%for incomes $11,600 to $47,150for incomes $23,200 to $94,300for incomes $16,550 to $63,100
10%incomes of $11,600 or lessfor incomes of $23,200 or lessfor incomes of $16,550 or less

To help taxpayers determine which filing status applies to them the IRS has an online tool “What Is My Filing Status?

Income taxes are progressive

The tax brackets are progressive, so if you file as a single filer and have a taxable income of $50,000, you don’t pay 22 percent on the whole of your taxable income. You would pay 10 percent on the first $11,600 ($1,160), 12 percent on the income between $11,600 and $47,150 ($4,266), and then 22 percent on the remaining $2,850 ($627) for a total of $6,053.00 as opposed to $11,000. That amount is $254.50 less than you would be taxed for the same income in 2023.