Say, have you ever wondered what the tax brackets are for the 2024 tax year? We’ve got you covered — and there’s actually some good news, thanks to inflation. The Internal Revenue Service (IRS) adjusts tax brackets for inflation each year, and becauseinflation remains high, it’s possible you could fall into a lower bracket for the income you earn in 2024. Your standard deduction — the amount you can use as a deduction on your 1040 tax return without itemizing — will also be higher.
If you start now, you can make plans to reduce your 2024 tax bill. Knowing the tax brackets for 2024 can help you implement smart tax strategies, like adjusting your income tax withholding, so you don’t get caught with a big tax bill.
How the tax brackets work
In the U.S. tax system, income tax rates are graduated, so you pay different rates on different amounts of taxable income. There are seven federal income tax rates in all: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. The more you make, the more you pay.
A tax bracket is a range of income that’s taxed at a specified rate. Importantly, your highest tax bracket doesn’t reflect how much you pay on all of your income. If you’re a single filer in the 22 percent tax bracket for 2024, you won’t pay 22 percent on all your taxable income. You will pay 10 percent on taxable income up to $11,600, 12 percent on the amount over $11,600 to $47,150, and 22 percent above that (up to $100,525).
In addition, the standard deduction is $14,600 for single filers for the 2024 tax year, up from $13,850 for 2023. The standard deduction for couples filing jointly is $29,200 in 2024, up from $27,700 in the 2023 tax year. The standard deduction is the fixed amount the IRS allows you to deduct from your annual income even if you don’t itemize your tax return. The lower your taxable income is, the lower your tax bill.
FAQs
The 2023 tax year—meaning the return you'll file in 2024—will have the same seven federal income tax brackets as the last few seasons: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you're in.
What are the new tax rates for 2024? ›
New individual tax rates and thresholds for 2024–25
| Thresholds in 2024–25 ($) | Rates in 2024–25 (%) |
|---|
| 0 – 18,200 | Tax free |
| 18,201 – 45,000 | 16 |
| 45,001 – 135,000 | 30 |
| 135,001 – 190,000 | 37 |
1 more rowFor 2024, assuming no changes, Ellen's standard deduction would be $16,550: the usual 2024 standard deduction of $14,600 available to single filers, plus one additional standard deduction of $1,950 for those over 65.
Will tax returns be bigger in 2024? ›
So far in 2024, the average federal income tax refund is $2,850, an increase of 3.5% from 2023. It's not entirely unexpected: To adjust for inflation, the IRS raised both the standard deduction and tax brackets by about 7%.
Did federal withholding change for 2024? ›
Your new year paycheck might have different withholding amounts for federal taxes. Effective Jan 1 2024, IRS has updated the federal tax brackets. The rates remain at 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37% but the ranges have been adjusted for inflation.
What are the new tax brackets for 2026? ›
Under the TCJA, the tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. On January 1, 2026, the rates return to their pre-TCJA amounts of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
Are tax brackets changing? ›
New tax bracket limits
The tax brackets for the 2024 tax year, set by the 2017 Tax Cuts and Jobs Act, aren't changing, but the cutoffs for each band of taxation will shift higher. The tax rates will remain 10%, 12%, 22%, 24%, 32%, 35% and 37%. But it will take more income to reach each higher band of taxation.
At what age is Social Security no longer taxed? ›
Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.
Do seniors still get an extra tax deduction? ›
For tax year 2023, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,850 for single or head of household.
Why do I owe so much in taxes in 2024? ›
As the 2024 tax deadline approaches, you may be in the position of expecting to owe money to the IRS. This may be the case if you made over $20,000 from a side hustle in 2023, you earn self-employment income (such as through a freelance gig), or you entered a new tax bracket.
After a slow start to the 2024 tax season, the average tax refund this year is now up to $3,070, a 6% increase from this time in 2023. While a $3,000 check in April is a welcome cash infusion, wouldn't it be even better to get $6,000 back? How about $10,000? Or $20,000?
Is it better to claim 1 or 0 on your taxes? ›
Claiming 1 on your tax return reduces withholdings with each paycheck, which means you make more money on a week-to-week basis. When you claim 0 allowances, the IRS withholds more money each paycheck but you get a larger tax return.
What is the child tax credit update for 2024? ›
2024 child tax credit news update
The maximum refundable child tax credit amount was capped at $1,600 per dependent for this filing season. In tax years 2024 and 2025, the refundable amount would grow to $1,900 and $2,000.
What will the tax bracket increase to in 2026? ›
The TCJA decreased the tax rates and changed the brackets to which those rates applied. Under the TCJA, the tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. On January 1, 2026, the rates return to their pre-TCJA amounts of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
