2024 Tax Brackets And Deductions: A Complete Guide
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Key Takeaways
- The IRS adjusts the tax code every year by slightly increasing the income thresholds of each income tax bracket in order to prevent what is known as “bracket creep”.
- “Bracket creep” happens when inflation alone pushes people into higher income brackets (thus making their tax liability higher) while reducing their purchasing power.
- The U.S. has a progressive tax system, meaning that your entire income is not taxed at a fixed rate, with different parts of it being taxed at different rates instead.
- There are two forms of deductions available to taxpayers: The standard deduction and itemizing deductions.
- Deductions and credits allow taxpayers to reduce the amount of money they pay in income taxes to the federal government each year.
With the amount of tools and other forms of assistance available to taxpayers, you’d be surprised at how little you have to be exposed to numbers and math in general when filing a tax return. However, looking past that veil of convenience puts the true complexity of topics such as tax brackets and deductions in full display.
Not that you need a PhD in mathematics in order to understand taxes, but having a more thorough understanding of tax brackets and how to take advantage of deductions can help you to significantly reduce your tax liability and file a more favorable tax return.
Tax Brackets For 2024
To prevent what is known as “bracket creep,” the Internal Revenue Service (IRS) has issued inflation tax code adjustments for the 2024 tax season, with income thresholds for each bracket slightly increased.
A bracket creep occurs when inflation, rather than actual increases in income, pushes people into higher income tax brackets and reduces their ability to take advantage of credits and standard deductions, negatively impacting their effective tax rate.
Federal tax brackets saw a 5.4% rise from 2023, meaning that taxpayers whose salaries have not kept pace with inflation may be able to shield more of their income from higher federal tax brackets in 2024.
Taxpayers will also see an increase on their standard deduction. Single filers will see an increase of $750 and joint filers will receive a $1,500 bump in their standard deduction. If you are a single senior over the age of 65, you can claim an additional standard deduction of $1,950, married seniors are entitled to an additional $1,550.
Depending on your tax rate and filing status, you’ll owe different amounts on different parts of your income depending on your taxable income. As in 2023, the marginal tax rate(s) of 10%, 12%, 22%, 24%, 32%, 35%, and 37% will be in effect in 2024.
2024 Federal Income Tax Brackets and Rates
2024 tax brackets (Taxes Filed in 2025)
In the United States, we have a progressive income tax that works in conjunction with marginal tax rates.
In simple terms, you are not taxed at the same rate on all of your earnings. You are taxed at different rates based on your pay as you move from one bracket to the next. Each income range is subject to a different federal tax rate, as defined by the IRS.
Your tax rate increases as your income grows. An individual making $250,000 would pay a lot more in taxes and at a higher effective tax rate than a person making $50,000 per year.
For all 2024 tax brackets and all filers, the income limits will be adjusted for inflation as follows:
| Tax Rate | Single Filers | Married Individuals Filing Joint | Heads of Households |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 |
| 12% | $11,600 to $47,150 | $23,200 to $94,300 | $16,550 to $63,100 |
| 22% | $47,150 to $100,525 | $94,300 to $201,050 | $63,100 to $100,500 |
| 24% | $100,525 to $191,950 | $201,050 to $383,900 | $100,500 to $191,950 |
| 32% | $191,950 to $243,725 | $383,900 to $487,450 | $191,950 to $243,700 |
| 35% | $243,725 to $609,350 | $487,450 to $731,200 | $243,700 to $609,350 |
| 37% | $609,350 or more | $731,200 or more | $609,350 or more |
Standard Deductions for Single Filers
The standard tax deduction is a set amount that taxpayers are automatically allowed to deduct from their taxable income, thus lowering their total tax owed.
The standard deduction for a single person will go up from $13,850 in 2023 to $14,600 in 2024, an increase of 5.4%.
The top marginal tax rate in tax year 2024, will remain at 37% for single individuals with incomes greater than $609,350. Here are the rest of the tax brackets for single taxpayers:
- 35% for incomes over $243,725
- 32% for incomes over $191,950
- 24% for incomes over $100,525
- 22% for incomes over $47,150
- 12% for incomes over $11,600
The lowest tax rate in 2024 is 10% for incomes of single individuals with incomes of $11,600 or less. Lets how they compare 2023 vs 2024
Tax Brackets for Single Individual Taxpayers
| Tax Rate | 2023 | 2024 |
| 10% | $11,000 or less | $11,600 or less |
| 12% | $11,001 to $44,725 | $11,601 to $47,150 |
| 22% | $44,726 to 95,375 | $47,151 to $100,525 |
| 24% | $95,376 to $182,100 | $100,526 to $191,950 |
| 32% | $182,101 to $231,250 | $191,951 to $243,725 |
| 35% | $231,251 to $578,125 | $243,726 to $609,350 |
| 37% | Over $578,125 | Over $609,350 |
Tax Implications for Married Couples Filing Jointly in 2024
Standard Deduction for married couples filing jointly in 2024
For the tax year 2024, the standard deduction for married couples filing jointly will increase to $29,200, an increase of $1,500 over the tax year 2023.
The top tax rate will remain at 37% for married couples filing jointly, however the income bracket has increased from $693,750 in 2023 to $731,200 in 2024.
Now remember, with the progressive tax system, a taxpayer is only paying that rate on the amount over the threshold. For example a married couple who has an income total of $731,300, would only pay 37% on the $100 that surpassed the top bracket of $731,200.
The other joint filing rates are:
- 35% for incomes over $487,450
- 32% for incomes over $383,900
- 24% for incomes over $201,050
- 22% for incomes over $94,300
- 12% for incomes over $23,200
The lowest rate is 10% for incomes of 23,200 or less for married joint filers.
2023 vs 2024 Tax Brackets for Married Filing Jointly
| Tax Rate | 2023 | 2024 |
| 10% | $22,000 or less | $23,200 or less |
| 10% | $22,000 or less | $23,200 or less |
| 12% | $22,001 to $89,450 | $23,201 to $94,300 |
| 22% | $89,451 to $190,750 | $94,301 to $201,050 |
| 24% | $190,751 to $364,200 | $201,051 to $383,900 |
| 32% | $364,201 to $462,500 | $383,901 to $487,450 |
| 35% | $462,501 to $693,750 | $487,451 to $731,200 |
| 37% | Over $693,750 | Over $731,200 |
Tax Implications for Head of Household Filers
Heads of household filers will be entitled to a standard deduction of $21,900 on their 2024 tax return.
2023 vs 2024 Tax Brackets for Head of Household
| Tax Rate | 2023 | 2024 |
| 12% | $15,701 to $59,850 | $16,551 to $63,100 |
| 22% | $59,851 to $95,350 | $63,101 to $100,500 |
| 24% | $95,351 to $182,100 | $100,501 to $191,950 |
| 32% | $182,101 to $231,250 | $191,951 to $243,700 |
| 35% | $231,251 to $578,100 | $234,701 to $609,350 |
| 37% | Over $578,100 | Over $609,350 |
Other notable tax changes coming in 2024.
2024 Alternative Minimum Tax (AMT) Exemptions
In 1969, Congress passed the Alternative Minimum Tax (AMT) to make sure rich people paid a minimum amount in taxes. Therefore, high-net-worth people have to calculate their income tax twice (using federal tax rules and AMT rules) and pay the higher amount.
In 2024, the Alternative Minimum Tax exemption amounts to $85,700 and ends at $609,350 for individuals, the exemption phased out at $578,150 in 2023.
The 2024 AMT exemption of $133,300 t for married couples filing jointly, ends at $1,218,700 in 2024, compared to the 2023 exemption amount of $126,500 which phased out at $1,156,300.
2024 Earned Income Tax Credit (EITC) Parameters
Earned Income Tax Credit maximum for taxpayers with three or more qualifying children in 2024 is $7,830, up from $7,430 in 2023.
2024 Capital Gains Tax Brackets
One of the most popular inflation tax adjustments for 2024 was the increase in the income threshold for long term capital gains tax. For 2024, you may qualify for the 0% long-term capital gains rate if your taxable income is $47,025 or less for single filers and $94,050 or less for married couples. A person who is in the 0% capital gains bracket may sell long-term assets (held for longer than one year) or rebalance their taxable portfolio without incurring any tax liability.
2023 vs 2024 Capital Gains Tax Single Filers
| 2023 | 2024 | |
| 0% | $0 to $47,025 | $0 to $44,625 |
| 15% | $47,026 to $518,900 | $44,626 to $492,300 |
| 20% | $518,901 or higher | $492,301 or higher |
2023 vs 2024 Capital Gains Tax Married Joint Filers
| 2023 | 2024 | |
| 0% | $0 to $94,050 | $0 to $89,250 |
| 15% | $94,051 to $583,750 | $89,251 to $553,850 |
| 20% | $583,751 or higher | $553,851 or higher |
2024 Qualified Business Income Deduction Thresholds
The qualified business income (QBI) deduction income limitations were raised as well. In 2023, single filers must have had less than $182,100 in taxable income or joint filers must have less than $364,200. For single filers and joint filers, the limits go up to $191,950 and $383,900, respectively, in 2024.
Qualified business income deductions are for people with pass-through income, which is business income you report on your personal tax return. Including income derived from
- Sole proprietorships.
- Partnerships
- S corporations.
- Limited liability companies (LLCs)
Unfortunately, there are certain types of income that can flow through to you from your business that do not qualify such as capital gains, interest income, dividends.
However, if your business income does qualify, a qualified business income (QBI) deduction lets self-employed and small-business owners deduct up to 20% of their qualified business income as long as single filers and joint filers meet the income limitation.
2024 Tax Brackets: FAQ
1. What are the federal income tax rates for 2024?
The federal income tax rates for the 2024 tax year (taxes filed in 2025) are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
2. How are the 2024 tax brackets for single filers different from those for married couples filing jointly?
For single filers in 2024, the first income bracket goes up to $11,600 with a tax rate of 10%, while for married couples filing jointly, the bracket goes up to $23,200 (also taxed at 10%, of course). The 37% rate starts at the highest income bracket of over $609,350 for single filers and over $731,200 for married couples filing jointly.
3. How will inflation affect the 2024 tax brackets?
The IRS adjusts tax brackets annually for inflation to prevent a phenomenon known as “bracket creep,” ensuring taxpayers aren’t pushed into higher brackets solely due to inflation without a corresponding increase in purchasing power. For 2024, this adjustment means increasing the amount for each tax bracket.
4. Are there different tax brackets for other filing statuses, such as Head of Household?
Yes, the IRS provides distinct tax brackets for every single one of their filing statuses (including Head of Household and Married Filing Separately) and their income thresholds corresponding to the various tax rates.
5: How can I find my tax bracket for 2024?
The easiest way to determine your tax bracket for the year is to calculate your taxable income (that’s your AGI) and compare it against the 2024 federal tax bracket table (available in the IRS’ own website). Wherever your taxable income ends without going over the threshold, that’s your tax bracket and corresponding marginal tax rate.
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