The IRS has unveiled its annual inflation adjustments for the 2024 tax year, featuring a slight uptick in income thresholds for each bracket compared to 2023.
Your taxable income and filing status determine both the tax rate and bracket that apply to you, outlining the amount you'll owe on different portions of your income.
For 2024, the seven federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Below, CNBC Select breaks down the updated tax brackets for 2024 and what you need to know about them.
What we'll cover
- 2024 tax brackets (for taxes filed in 2025)
- 2023 tax brackets (for taxes filed in 2024)
- Bottom line
2024 tax brackets (for taxes filed in 2025)
The tax inflation adjustments for 2024 rose by 5.4% from 2023 (which is slightly lower than the 7.1% increase the 2023 tax year had over the 2022 rates).
In 2024, the top tax rate of 37% applies to those earning over $609,350 for individual single filers, up from $578,125 last year. Meanwhile, the lowest threshold of 10% applies to those making $11,600 or less, up from $11,000 in 2023.
That means how much you pay in taxes could be higher or lower this year than in 2023. For example, let's say you earned $45,000 in taxable income as a single filer in 2023. How your income is taxed gets broken down into three tax brackets:
- 10% for the first $11,000 of your income — which comes down to $1,100
- 12% for any income between $11,001 to $44,725 ($33,724) — which comes down to $4,046.88
- 22% for the remaining income between $44,726 to 95,375 ($274) — which comes down to $60.28
- This adds up to $5,207.16 in taxes for the 2023 calendar year.
Now, let's say you're earning $45,000 in 2024. Your tax bracket will look a little different.
- 10% for the first $11,600 of your income — which comes down to $1,160
- 12% for any income between $11,601 to $47,150 ($33,399) — which comes down to $4,007.88
- This adds up to $5,167.88 in taxes for the 2024 calendar year.
That's about $40 less in taxes in 2024 than in 2023.
Below, are the brackets and rates that apply to income earned in 2024.
2024 Tax Brackets (Taxes Due 2025)
| Tax Rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,600 or less | $23,200 or less | $11,600 or less | $16,550 or less |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $234,701 to $609,350 |
| 37% | Over $609,350 | Over $731,200 | Over $365,600 | Over $609,350 |
Source: IRS.gov
2023 tax brackets (for taxes filed in 2024)
Taxes for the 2024 year are due by April 15, 2024, or October 2024 with a tax extension. If you prefer to file without the help of a tax professional, TurboTax and H&R Block topped CNBC Select's list of top tax software based on cost, user experience, the amount of expertise available to customers, and Better Business Bureau rating.
TurboTax
On TurboTax's secure site
Cost
Costs may vary depending on the plan selected - click "Learn More" for details
Free version
TurboTax Free Edition. ~37% of taxpayers qualify. Form 1040 + limited credits only.
Mobile app
Yes
Live support
Available with some pricing and filing options
Click here for TurboTax offer details and disclosures. Terms apply.
H&R Block
On H&R Block's secure site
Cost
Costs may vary depending on the plan selected (Free Online, Deluxe, Premium, or Self-Employed) - click "Learn More" for details
Free version
Yes (for simple returns only)
Mobile app
Yes
Live support
Available with some pricing and filing options
Terms apply.
Below, are the brackets and rates that apply to taxable income earned in 2023.
2023 Tax Brackets (Taxes Due 2024)
| Tax Rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,000 or less | $22,000 or less | $11,000 or less | $15,700 or less |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to 95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | Over $578,125 | Over $693,750 | Over $346,875 | Over $578,100 |
Source: IRS.gov
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Bottom line
As the IRS releases 2024's tax inflation adjustments, it's a good opportunity to proactively plan for how much you could owe in 2025. If you find that you'll owe less, that gives you space to allocate your funds elsewhere. More information about the update can be found on theIRS.govwebsite.
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