2024 Tax Brackets

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 will see 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.

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