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.
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 rate | Single filers & Married Filing Seperately | Married filing jointly | Head of household |
|---|---|---|---|
| 37% | for incomes over $609,350 | for incomes over $731,200 | for incomes over $609,350 |
| 35% | for incomes $243,725 to $609,350 | for incomes $487,450 to $731,200 | for incomes $243,700 to $609,350 |
| 32% | for incomes $191,950 to $243,725 | for incomes $383,900 to $487,450 | for incomes $191,950 to $243,700 |
| 24% | for incomes $100,525 to $191,950 | for incomes $201,050 to $383,900 | for incomes $100,500 to $191,950 |
| 22% | for incomes $47,150 to $100,525 | for incomes $94,300 to $201,050 | for incomes $63,100 to $100,500 |
| 12% | for incomes $11,600 to $47,150 | for incomes $23,200 to $94,300 | for incomes $16,550 to $63,100 |
| 10% | incomes of $11,600 or less | for incomes of $23,200 or less | for 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.