New 2024 Tax IRS Brackets Kick In on Jan. 1: Here’s Where You Fall
The IRS raised the income cutoffs for each tax bracket by an average of 5.4%, allowing you to keep more of your money
The beginning of January brings with it new tax brackets that will let some Americans keep more of their income.
The changes stem from annual inflation adjustments by the Internal Revenue Service aimed at preventing workers who get raises from being pushed into higher tax brackets even though their purchasing power hasn't changed. The 5.4% adjustment for 2024 is smaller than the 7.1% increase in 2023, but it's a bigger boost than the 3.1% change seen in 2022.
In some cases, the new tax brackets may mean taxpayers owe less to the IRS, even if they've made more money. For example, someone who had a taxable income of $95,000 in 2023 and gets a 3% pay increase to $97,850 in 2024 would drop to a 22% bracket from 24%.
The top tax rate in 2024 remains 37% for single taxpayers with incomes greater than $609,350, or $731,200 for married couples filing jointly. That’s up from 2023’s threshold of $578,125 for individuals or $693,750 for married couples filing jointly.
The other tax brackets for 2024 are:
- 35% tax rate for single taxpayers with income over $243,725 or $487,450 for married couples, up from $231,250/$462,500 last year
- 32% tax rate for people who earn over $191,950 or $383,900 for married couples, up from $182,100/$364,200 last year
- 24% tax rate people who earn over $100,525 or $201,050 for married couples, up from $95,375/$190,750 last year
- 22% tax rate for people who earn over $47,150 or $94,300 for married couples, up from $44,725/$89,450 last year
- 12% tax rate for people who earn over $11,600 or $23,200 for married couples, up from $11,000/$22,000 last year
- 10% tax rate for people who earn $11,600 or less, or $23,200 or less for married couples, up from $11,000/$22,000 last year
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Standard deductions — the income you can shield from tax without itemizing — will increase next year by $750 to $14,600 for individuals, by $1,500 to $29,200 for married couples filing jointly, and by $1,100 to $21,900 for heads of household, the IRS said.
People who choose to itemize deductions will continue to have the “no limitation” rule stemming from Tax Cuts and Jobs Act, the IRS said in its Nov. 9 announcement about 2024’s inflation adjustments.
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