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Tax brackets and standard deductions are changing for U.S. taxpayers in 2024. Adjustments are being made in response to inflation and are slightly higher than 2023 rates, allowing for a slight tax reduction if your income remains the same, or a bit of room for a raise before a tax increase kicks in.
Adjustments take effect in the 2024 tax year, so these changes won't apply until you do your taxes in 2025. To get a preview, here's how the IRS is adjusting income tax brackets and standard deductions for the 2024 tax year.
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Tax Brackets for 2024, Single Filers
Tax brackets apply the lowest tax rates to lower levels of income and progressively higher rates as your income increases. For 2024, the first $11,600 you earn as a single taxpayer is taxed at 10%, the next $35,549 is taxed at 12%, and so on.
| 2024 Tax Brackets, Single Filers | ||
|---|---|---|
| Rate | Tax Bracket | Taxes Owed |
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 + 12% of amount over $11,500 |
| 22% | $47,151 to $100,525 | $5,426 + 22% of amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168 + 24% of amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110 + 32% of amount over $191,950 |
| 35% | $243,726 to $609,350 | $55,678 + 35% of amount over $191,950 |
| 37% | Over $609,350 | $183,646 + 37% of amount over $609,350 |
Source: IRS
To estimate the amount of tax you'll owe, find the bracket that contains your projected taxable income (adjusted gross income minus your standard deduction for 2024, shown below) and do the calculation shown in the right-hand column.
Example: If your 2024 taxable income is $44,000, the first $11,600 of your income is taxed at 10% ($1,160) with the remaining $32,400 taxed at 12%. Therefore, you will owe $1,160 + 12% of $32,400, or $5,048. Your income places you in the 12% tax bracket.
For reference, tax on the same $44,000 in income in 2023 would be $5,060, and would place you in the 22% tax bracket. The tax savings in 2024 is marginal but significant, and certainly less tax is better than more.
Tax Brackets for 2024, Married Filing Jointly
Married couples filing jointly will see proportional adjustments to their tax brackets, with the top bracket starting at $731,200 versus $693,751 in 2023.
| 2023 Tax Brackets, Married Filing Jointly | ||
|---|---|---|
| Rate | Tax Bracket | Taxes Owed |
| 10% | Up to $23,200 | 10% of taxable income |
| 12% | $23,201 to $94,300 | $2,320 + 12% of amount over $23,200 |
| 22% | $94,301 to $201,050 | $10,852 + 22% of amount over $94,300 |
| 24% | $201,051 to $383,900 | $34,337 + 24% of amount over $201,050 |
| 32% | $383,901 to $487,450 | $78,220 + 32% of amount over $383,900 |
| 35% | $487,451 to $731,200 | $111,356 + 35% of amount over $487,450 |
| 37% | Over $731,200 | $196,668 + 37% of amount over $731,200 |
Source: IRS
What Are the Standard Deductions for 2024?
In addition to tax bracket adjustments, standard deductions are changing in 2024. If you take the standard deduction instead of itemizing, here are the standard deductions for 2024 and their 2023 counterparts.
| Standard Deductions for 2024 | |||||
|---|---|---|---|---|---|
| Single and Married Filing Separately | Head of Household | Married Filing Jointly | |||
| 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| $13,850 | $14,600 | $20,800 | $21,900 | $27,700 | $29,200 |
Source: IRS
The Bottom Line
Adjustments for inflation help ensure that IRS marginal tax rates and standard deductions reflect the financial realities of everyday Americans more accurately. Because inflation has packed a bigger punch recently than in years past, your personal finances may benefit from an adjustment as well. Consider revisiting your monthly budget and checking up on your credit report and score to make sure you're on track to meet your financial goals, maintain your financial health and make good use of any tax savings you'll see as a result of these IRS changes.