The IRS has released new income tax brackets for 2024. These changes by the IRS, come annually using the consumer price index formula to address inflation while preventing bracket creep. In its report, the IRS disclosed a 5.4% increase in income thresholds for tax brackets.
While this year’s 3.7% inflation increase is less than last year’s 7%, it surpasses historical periods with lower inflation rates. The adjustments will benefit many Americans by lowering income tax and boosting their paychecks.
The 2024 tax withholding tables have these adjustments with new tax returns filing for 2025. The 2024 tax table shows how much employers should withhold from employees’ wages in their paychecks for federal taxes.
IRS Income Tax Brackets 2024(Taxes Due April 2025)
There are 7 federal income tax rates as per 2017 Tax Cuts and Job Act: 37%, 35%, 32%, 24%, 22%, 12%, and 10%.
Below are the 2024 federal income tax brackets with effect January 1, 2024. You’ll use it to file your 2024 tax returns in 2025. If you expect changes in the year 2024, use the updated tables to estimate your liability. The tax will be due by April 2025, or if with an extension, October 2025
IRS Income Tax Brackets 2024 Married Jointly
| Tax Rate | Taxable Income | Tax owed |
| 37% | $731,201 or more | $196,669.50 plus 37% of the amount over $731,200 |
| 35% | $487,451 to $731,200 | $111,357 plus 35% of the amount over $487,450 |
| 32% | $383,901 to $487,450 | $78,221 plus 32% of the amount over $383,900 |
| 24% | $201,051 to $383,900 | $34,337 plus 24% of the amount over $201,050 |
| 22% | $94,301 to $201,050 | $10,852 plus 22% of the amount over $94,300 |
| 12% | $23,201 to $94,300 | $2,320 plus 12% of the amount over $23,200 |
| 10% | $23,200 or below | 10% of taxable income |
2024 Tax Brackets for Married Filing Separately
| Marginal Rate | Tax Income Bracket | Tax owed |
| 37% | $365,601 or more | $98,334.75 plus 37% of the amount over $365,600 |
| 35% | $243,726 to $365,600 | $55,678.50 plus 35% of the amount over $243,725 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of the amount over $47,150 |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of the amount over $11,600 |
| 10% | $0 to $11,600 | 10% of taxable income |
Tax Brackets 2024, Single
| Marginal Rate | Tax Income Bracket | Tax Owed |
| 37% | $609,351 or more | $183,647.25 plus 37% of the amount over $609,350. |
| 35% | $243,726 to $609,350 | $55,678.50 plus 35% of the amount over $243,725 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of the amount over $47,150 |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of the amount over $11,600 |
| 10% | $11,600 or below | 10% of taxable income |
New Tax Brackets 2024 Head of Household
| Marginal Rate | Taxable Income Bracket | Tax owed |
| 37% | $609,350 and above | $181,954.50 plus 37% of the amount over $609,350. |
| 35% | $243,700 to $609,350 | $53,977 plus 35% of the amount over $243,700. |
| 32% | $191,950 to $243,700 | $37,417 plus 32% of the amount over $191,950. |
| 24% | $100,500 to $191,950 | $15,469 plus 24% of the amount over $100,500. |
| 22% | $63,100 to $100,500 | $7,241 plus 22% of the amount over $63,100. |
| 12% | $16,550 to $63,100 | $1,655 plus 12% of the amount over $16,500. |
| 10% | $16,550 or below | 10% of taxable income |
Trusts and Estates 2024 Tax Brackets
| Marginal Rate | Taxable Income |
| 37% | $15,201 |
| 35% | $11,151 – $15,200 |
| 24% | $3,101 – $11,150 |
| 10% | $3,100 |
Standard Deduction 2024
In 2024, standard deductions rise are as follows:
- $14,600 for individuals
- $29,200 for joint filers
- $21,900 for heads of household, $1,100 increase up from 2023s’ $20,800.
The table below breaks down the 2024 standard deduction amounts
| Status | Standard deduction amount |
| Married filing jointly | $29,200 |
| Married filing separately | $14,600 |
| Single | $14,600 |
| Head of household | $21,900 |
- In 2024, the additional standard deduction for the aged or blind is $1,550, while for unmarried taxpayers, it increases to $1,950.
- The standard deduction for dependents in 2024 can’t surpass the greater of $1,300 or $450 plus the individual’s earned income, capped at the regular standard deduction.
2024 Child Tax Credit
The kiddie tax impacts children under 19 and college students under 24, targeting unearned income like dividends and interest, not wages. Taxes on unearned income in 2024 are mandatory for children, but if it’s $1,300 to $13,000, you can include it in your return.
While Congress discusses changes to the Child Tax Credit, the refundable child tax credit will increase from $1,600 to $1,700 for 2024.
2024 Earned Income Tax Credit
In 2024, the maximum Earned Income Tax Credit (EITC) for single and married filing jointly with:
- No child is $ 633
- One child is $4,213
- Two children is $6,960
- Three and above is $7,830
Phaseouts apply. The adoption credit is $16,810 for special needs adoptions and up to expenses for others, phased out for MAGI above $252,150.
Social Security, IRA, 401(k) and FSA Contributions Adjustments 2024
As from January, Social Security benefits will rise by a substantial 3.2%, translating to an increase of over $50 per month. This adjustment aims to address the evolving cost of living.
For retirement planning, employee contributions to 401(k), 403(b), and the majority of 457 plans have a new cap at $23,000, marking an increase from the 2023 limit of $22,500. Simultaneously, the annual contribution limit for Individual Retirement Accounts (IRAs) has been elevated to $7,000, up from the previous limit of $6,500. These adjustments align with the goal of encouraging long-term savings and financial security.
The FSA contribution limit for 2024 will see an uptick, reaching $3,200 compared to the prior limit of $3,050. This adjustment provides individuals with a slightly larger financial scope for dependent care expenses and healthcare.
